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dc.contributor.advisorCharity Njokaen_US
dc.contributor.authorMayi, Nelson Mandela
dc.date.accessioned2023-08-15T12:42:37Z
dc.date.available2023-08-15T12:42:37Z
dc.date.issued2023
dc.identifier.urihttp://ir-library.ku.ac.ke/handle/123456789/26846
dc.descriptionA Research Project Submitted to School of Business, Economics and Tourism in Partial Fulfillment of the Requirement for the Award of Degree in Master of Business Administration (Finance Option) of Kenyatta University, June 2023.en_US
dc.description.abstractManufacturing1firms play an essential function in economic growth and national economy. The1contribution of manufacturing sector to Kenya's economy is at 10 per cent of Gross Domestic Product. Foreign investment portfolio is an essential in ensuring an improvement in the financial performance of manufacturing and allied firms. However, despite the adoption of foreign investment portfolio and expertise, the financial performance of these firms still remains poor. Return on1assets among1manufacturing and1allied companies listed in Nairobi Securities Exchange decreased from 10.56% to 7.56% between the year 2017 and 2018. Therefore, the researcher sought1to examine the effect of foreign1investment portfolio on financial performance of manufacturing and allied companies listed in NSE. The specific objectives of the study were to establish the effect of foreign equity capital, corporate bonds held by foreign investors and foreign ownership on financial performance of manufacturing and allied companies listed in NSE. The study used stakeholder theory, profit maximization theory, pecking order theory and eclectic paradigm of Dunning theory. The researcher adopted an explanatory research design. Target population was 9 manufacturing and allied companies listed in NSE. Since the study population was small, researcher used a census approach and hence all manufacturing and allied companies listed in NSE were included. The researcher used secondary data obtained from Capital Market Authority and Nairobi Securities Exchange covering the period between 2015 and 2020. The descriptive and inferential statistics were employed to analyse data with assistance of STATA version 14. The study found that foreign equity capital has a positive and insignificant effect on financial performance of listed manufacturing and allied firms in Nairobi Securities Exchange (β1=0.062, pvalue=0.857). Corporate bonds held by foreign investors have significant positive effect on financial performance of listed manufacturing and allied firms in NSE (β2=0.0204, p-value=0.045). Foreign ownership has a positive and significant effect on the financial performance of listed manufacturing and allied firms in Nairobi Securities Exchange (β3=0.7638, p-value=0.368). This study therefore recommends that the firms should encourage foreign investors to invest more funds to the companies as well as buy ordinary shares to enable the companies improve their performance and also facilitate their expansion. Furthermore, the firms in Nairobi Securities Exchange should buy corporate bonds since they are less risky when compared to stocks and come with low returns which as a result improves the performance of the companies. In addition, the firms should encourage foreign investors to take ownership of their companies in order to improve the firms' financial performance as well as increase the company’s exports. The study recommends that Kenyan government should develop policies to make Kenyan market more attractive to investors. This can also be done by coming up with favourable labour policies to protect both the employees and investors in various projects.en_US
dc.description.sponsorshipKenyatta Universityen_US
dc.language.isoenen_US
dc.publisherKenyatta Universityen_US
dc.subjectForeign Investment Portfolio and Financial Performance of Manufacturing and Allied Companiesen_US
dc.subjectNairobi Securities Exchangeen_US
dc.subjectKenyaen_US
dc.titleForeign Investment Portfolio and Financial Performance of Manufacturing and Allied Companies Listed At Nairobi Securities Exchange, Kenyaen_US
dc.typeThesisen_US


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