Relating Sales Growth and Financial Performance in Agricultural Firms Listed In the Nairobi Securities Exchange in Kenya

Show simple item record

dc.contributor.author Odalo, Samuel Kanga
dc.contributor.author Njuguna, Amos G.
dc.contributor.author Achoki, George
dc.date.accessioned 2016-12-07T14:07:21Z
dc.date.available 2016-12-07T14:07:21Z
dc.date.issued 2016
dc.identifier.issn 2348 0386
dc.identifier.uri http://erepo.usiu.ac.ke/11732/3043
dc.description A Journal article by Dr. Amos Njuguna, Associate Professor and Associate Dean in the Chandaria School of Business at USIU-Africa en_US
dc.description.abstract Recent cases of corporate failure in the 21st Century have prompted shareholders and other stakeholders to strictly monitor financial performance of their firms with sales growth being seen as the primary driver of sustainability. This study aimed to determine the effect of sales growth on the financial performance of listed Agricultural Companies at Nairobi Securities Exchange in Kenya from 2003 to 2013.The study was anchored on the theory of the firm growth that recognizes that increments in sales over the years affects financial performance of an organization. A panel design with descriptive and causal study design was adopted and all the listed companies in the agriculture sector in Kenya were studied. Sales increments in each year was used as a measure of sales growth while financial performance was measured by return on assets (ROA), return equity (ROE) and earnings per share (EPS). Inferential statistics (correlation and regression) was used for data analysis. A pooled OLS regression model was used to incorporate the time and space movements. The study affirms that sales growth has a positive and significant effect on financial performance measures ROA and ROE and negative and insignificant effect on EPS. From the study findings there is clear evidence to conclude that as the firm increases sales, financial performance as measured by ROA and ROE also growth opportunities since it exerts a significant effect on financial performance. However, other need to be explored as a percentage growth in sales only leads to 11% improvement in ROA and ROE. en_US
dc.relation.ispartofseries ;Vol. IV, Issue 7, July 2016
dc.subject Sales growth en_US
dc.subject Financial performance en_US
dc.subject Agricultural firms en_US
dc.subject Nairobi Securities Exchange en_US
dc.subject Return on assets en_US
dc.subject Return on equity en_US
dc.subject Earnings per share en_US
dc.title Relating Sales Growth and Financial Performance in Agricultural Firms Listed In the Nairobi Securities Exchange in Kenya en_US
dc.type Article en_US

Files in this item

This item appears in the following Collection(s)

Show simple item record

Search Repository


My Account