Financial Risk and Financial Performance: Evidence and Insights from Commercial and Services Listed Companies in Nairobi Securities Exchange, Kenya

Simple item page
dc.contributor.authorOnsongo, Susan Kerubo
dc.contributor.authorMuathe, Stephen M. A.
dc.contributor.authorMwangi, Lucy Wamugo
dc.date.accessioned2020-09-17T08:21:14Z
dc.date.available2020-09-17T08:21:14Z
dc.date.issued2020
dc.descriptionA research article published International Journal of Financial Studiesen_US
dc.description.abstractIn Kenya, the last few years has seen the performance of companies listed under the commercial and services segment on the Nairobi Securities Exchange (NSE), experience mixed fortunes. The study sought to assess the implications of financial risk on the performance of these companies. The study applied explanatory research design. The target population were the 14 companies listed under this segment of NSE. Secondary panel data contained in published annual reports for the period 2013–2017 was collected. Panel regression model was applied with the random e ect model being used based on the Hausman specification test. Findings showed that credit risk had an insignificant positive e ect on return on equity (ROE) while liquidity risk had a significantly negative e ect on ROE and operational risk had a positive insignificant e ect on ROE. The positive coe cients from the data analysis indicated that commercial and service companies at NSE were able to take in more credit to boost performance of these companies however the negative coe cients shows that within the period of study these companies experienced high liquidity problems in that the current liabilities exceeded the current assets. Thus, concluding that these companies were unable to pay all their obligation when they were due.en_US
dc.identifier.citationOnsongo, S. K., Muathe, S., & Mwangi, L. W. (2020). Financial Risk and Financial Performance: Evidence and Insights from Commercial and Services Listed Companies in Nairobi Securities Exchange, Kenya. International Journal of Financial Studies, 8(3), 51.en_US
dc.identifier.issn2227-7072
dc.identifier.urihttps://www.mdpi.com/2227-7072/8/3/51
dc.identifier.urihttp://ir-library.ku.ac.ke/handle/123456789/20381
dc.language.isoenen_US
dc.publisherMPDIen_US
dc.subjectfinancial performanceen_US
dc.subjectfinancial risken_US
dc.subjectcommercial and services companiesen_US
dc.subjectNairobi Securities Exchangeen_US
dc.titleFinancial Risk and Financial Performance: Evidence and Insights from Commercial and Services Listed Companies in Nairobi Securities Exchange, Kenyaen_US
dc.typeArticleen_US
Files
Original bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
Financial Risk and Financial Performance Evidence (1).pdf
Size:
401.57 KB
Format:
Adobe Portable Document Format
Description:
Full-text
Download
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
1.71 KB
Format:
Item-specific license agreed upon to submission
Description:
Download
Collections
RP-Accounting and Finance Department