S

Study on the Relationship between Capital Structure and Financial Performance of the Manufacturing Companies Listed On the Nairobi Stock Exchange

Show simple item record

dc.contributor.author Njenga, Thomas Gitari
dc.date.accessioned 2015-05-15T14:10:06Z
dc.date.available 2015-05-15T14:10:06Z
dc.date.issued 2014-08
dc.identifier.uri http://erepo.usiu.ac.ke/11732/182
dc.description A Project Report Submitted to the Chandaria School of Business in Partial Fulfillment of the Requirement for the Degree of Masters in Business Administration (MBA) en_US
dc.description.abstract The purpose of the study was to assess the relationship between Capital structure and financial performance and position of manufacturing companies quoted on the Nairobi Securities Exchange. The study sought to answer the following questions: What are the components of capital structure? Is there a relationship between capital structure and financial performance? Is there a relationship between capital structure and assets .Lastly, what is the effect of capital structure on the profitability. The research used descriptive research design to describe the relationship of the variables in order to justify the research findings. The data that was examined for the purpose of the study was only secondary data obtained from the Capital Markets Authorities of Kenya and Kenya Association of Manufacturers. The population of the study was from the manufacturing firms quoted on the Nairobi Securities Exchange Market. The study used purposive and random sampling technique to select a sample from the nine manufacturing firms companies quoted on the Nairobi Securities Exchange. The research model used was Debt Equity ratio as the independent variable, whereas dependent variables were the following ratios: Return on Assets, Return on Equity and Profitability ratios such as the Pre – Tax profit ratio and the After Tax profit ratio. The financial ratios were calculated by use of Microsoft Excell spreadsheets using data obtained from the five year period (2006- 2012) financial statements of the selected companies. Then data analysis was done by use of; graphs, tables, trend analysis and regression. The study has shown that the major components of capital structure are debt and equity. Secondly, the results of the study showed that there is no significant statistical relationship between capital structure and assets of the manufactured companies quoted. Lastly, the results of the study showed that there is no significant statistical relationship between capital structure and financial profitability of the manufacturing firms quoted on the Nairobi Securities Exchange. en_US
dc.publisher United States International University - Africa en_US
dc.subject Financial Performance en_US
dc.title Study on the Relationship between Capital Structure and Financial Performance of the Manufacturing Companies Listed On the Nairobi Stock Exchange en_US
dc.type Thesis en_US


Files in this item

This item appears in the following Collection(s)

Show simple item record

Search Repository


Browse

My Account

Context