Browsing by Author "Kinyua, Devis Kimanthi"

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    Effects of Liquidity Risk Management Practices on the Financial Performance of Automobile Companies in Nairobi City County – Kenya
    (IJARKE, 2023-10) Kinyua, Devis Kimanthi; Aluoch, Moses Odhiambo
    The automobile industry is an important component of economic development. It accounted for about 3% of the world's Gross Domestic Product in the year 2021. In Kenya, the industry is responsible for 7.8% contribution to the Gross Domestic Product. However, the Performance of Finances and profitability of the automobile industry is gaining scholarly concern due to the increasing risks associated with financial management. This study sought to determine how liquidity risk management practices affect the financial performance of automobile companies in the County of Nairobi, Kenya. An exploratory research design was adopted to investigate the characteristics of the phenomenon. The 56 registered automobile companies in Nairobi City County were targeted as the population. The census approach was used to select all the 56 automobiles. In each automobile company, two respondents were selected using purposive sampling: Chief Executive Officer and Financial Officers. Key-informant interview guide and structured questionnaires were employed to gather data. Content analysis was utilized for the study of qualitative data. Version 25 of the Statistical Packages for Social Sciences was additionally applied to quantitative data to generate inferential and descriptive statistics. Hypotheses were tested using F-test at 95% confidence interval. Statistical outputs were presented in tables. It was found that the liquidity risk management had a moderate positive relationship. It implied that financial risks management practices positively related with performance of finances in automobile companies. The study concluded that an increase in liquidity resulted to a positive increase in the performance of finance in automobile companies. It was recommended that the government to develop better policies for effective regulation of financial management amongst the automobile companies