Influences Of Selected Factors On Performance Of Non-Financial Firms Listed In Nairobi Securities Exchange

Abstract

This study on which this paper is based sought to establish the influences of selected factors on performance of non-financial firms listed in Nairobi Securities Exchange (NSE). Specifically, the study sought to understand how the leverage, size and age affect the performance of the listed nonfinancial firms. To achieve this objective a descriptive research design was used. Firms that have been listed on the NSE for the past five years were considered. The study utilized secondary data obtained from the period 2011-2016. Data was collected from 20 listed firms which represented a response rate of 31 percent which was deemed sufficient for making generalization on the whole population. Data collected was analyzed using SPSS (Statistical Package for Social Scientists). Data obtained was analyzed using descriptive statistics, correlation analysis and regression analysis. The study established that there is a positive relation between leverage and performance when ROA is considered whereas leverage has a negative relation when ROE is taken as the performance measure. The study also found that there is a positive relationship between size and performance, there is need to focus on increasing the company’s assets. The study further established that age had a positive relation with the performance. From the study, the paper therefore concludes that attention is needed towards these firm level variables in order to improve the performance of the firms.