Determinants of the financial performance of firms listed at the Nairobi Securities Exchange

Aloys B. Ayako, Thomas Githui, George Kungu
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引用次数: 12

Abstract

This study analyzed the factors affecting the performance of 41 non-financial companies listed on the Nairobi Securities Exchange (NSE) using panel data over the period 2003 to 2013. A Hausman test results suggested the application of a random effects model for ROA and a fixed effects model for ROE. The empirical results of the estimation of both ROA and ROE show that corporate governance was statistically significant in determining the performance of firms and it had the expected sign (Positive). The leverage of the firm also had the expected negative sign and was statistically significant in explaining the performance of companies. Firm size and liquidity were however found to be statistically insignificant in determining the performance of these firms. Consistent with previous studies, the study concluded that board size, board independence and liquidity are key determinants of a firm’s financial performance. Consequently, the study recommends that a firm should ensure optimal board size, board independence (i.e increase the number of non-executive directors and sound liquidity management.The study recommends comparative studies to be undertaken on the factors influencing the financial performance of the financial and non-financial companies listed at the Nairobi securities exchange as well as those not listed. In addition, it recommends that further studies could be extended to analyze the factors affecting the performance of companies at cross-country level such as within the East African Community.
在内罗毕证券交易所上市的公司财务业绩的决定因素
本研究利用2003年至2013年期间的面板数据,分析了影响内罗毕证券交易所(NSE)上市的41家非金融公司业绩的因素。Hausman检验结果表明,净资产收益率采用随机效应模型,净资产收益率采用固定效应模型。对ROA和ROE估算的实证结果表明,公司治理在决定公司绩效方面具有统计学显著性,且具有预期符号(Positive)。公司的杠杆率也具有预期的负号,并且在解释公司绩效方面具有统计学意义。然而,公司规模和流动性在决定这些公司的绩效方面被发现在统计上不显著。与之前的研究一致,该研究得出结论,董事会规模、董事会独立性和流动性是公司财务绩效的关键决定因素。因此,该研究建议公司应确保最佳董事会规模、董事会独立性(即增加非执行董事的数量)和健全的流动性管理。研究报告建议对在内罗毕证券交易所上市的金融和非金融公司以及未上市公司的财务业绩的影响因素进行比较研究。此外,委员会建议进一步扩大研究范围,以分析影响跨国公司业绩的因素,例如在东非共同体内部。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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