Artikel
Financial risk and financial performance: Evidence and insights from commercial and services listed companies in Nairobi Securities Exchange, Kenya
In 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 effect model being used based on the Hausman specification test. Findings showed that credit risk had an insignificant positive effect on return on equity (ROE) while liquidity risk had a significantly negative effect on ROE and operational risk had a positive insignificant effect on ROE. The positive coefficients 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 coefficients 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.
- Language
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Englisch
- Bibliographic citation
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Journal: International Journal of Financial Studies ; ISSN: 2227-7072 ; Volume: 8 ; Year: 2020 ; Issue: 3 ; Pages: 1-15 ; Basel: MDPI
- Classification
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Wirtschaft
- Subject
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financial performance
financial risk
commercial and services companies
Nairobi Securities Exchange
- Event
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Geistige Schöpfung
- (who)
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Kerubo Onsongo, Susan
Muathe, Stephen M. A.
Wamugo Mwangi, Lucy
- Event
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Veröffentlichung
- (who)
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MDPI
- (where)
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Basel
- (when)
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2020
- DOI
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doi:10.3390/ijfs8030051
- Handle
- Last update
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10.03.2025, 11:42 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Artikel
Associated
- Kerubo Onsongo, Susan
- Muathe, Stephen M. A.
- Wamugo Mwangi, Lucy
- MDPI
Time of origin
- 2020
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IFRS compliance, corporate governance and financial reporting quality of GSE-listed non-financial firms
Financial constraints and investment decisions of listed Indian manufacturing firms
Market risk and financial performance of non-financial companies listed on the Moroccan Stock Exchange
Capital structure and firm growth investment decisions and financial management in listed companies
The board chairman's characteristics and financial stability of Malaysian-listed firms
The ESG disclosure and the financial performance of Norwegian listed firms
Decomposition techniques for financial ratios of European non-financial listed groups
International financial reporting standards (IFRS) disclosure and performance of Nigeria listed companies
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