MST-School of Business

Permanent URI for this community

https://repository.ku.ac.ke/handle/123456789/276
This collections contains bibliographic information and abstracts of Master theses and dissertation in the School of Business held in Kenyatta University Library

Browse

Browsing MST-School of Business by Author "Abdullahi, Isse Farah"

Now showing 1 - 1 of 1
  • Thumbnail Image
    Item
    Foreign Direct Investment and Financial Performance of Manufacturing Firms Registered with Kenya Association of Manufacturers
    (Kenyatta University, 2022-10) Abdullahi, Isse Farah
    Manufacturing firms in Kenya have been marred with unprecedented losses even despite government concerted efforts to attract the inflows of foreign direct investors in the manufacturing sector. The worst-hit include: Mumias Sugar Company that recorded a net loss for the periods of 2017 and 2018, East African Portland Cement that also posted net loss for the financial year 2019, Nzoia Sugar Ltd, Sony and Chemelil both recorded losses in the financial year 2014/15. Therefore, it is on this grounds that this research sought to establish the relationship that exist between foreign direct investment and financial performance of manufacturing firms that are registered by Kenya Association of Manufacturers. More specifically, this study sought to determine the effect of foreign equity shareholding, foreign board membership and foreign technological flow on financial performance of manufacturing firms that are registered with Kenya Association of Manufacturers while considering the moderating effect of political risk. The study was informed by the endogenous growth theory, resource view, agency theory and the modern portfolio theory. It was also anchored on pragmatic philosophy. The study used both correlational cross-section survey design targeting firms in the manufacturing sector that are registered by Kenya Association of Manufacturers. This study covered the data obtained from 2017 to 2021 because it was the most current and it was likely that secondary data would easily be obtained across the same. A census was conducted on all the 81 targeted firms. The research employed data primary and secondary sources guided by questionnaire and data collection sheet respectively. The study instrument had been pilot tested to ensure it was valid and reliable enough. A test for normality and autocorrelation was also carried out, after which the collected data was analyzed quantitatively using descriptive and inferential statistics. The data was presented in form of tables, charts and narratives. The study established that foreign equity shareholding