EFFECT OF DEBT FINANCING ON FINANCIAL PERFORMANCE OF SELECTED STATE CORPORATIONS IN KENYA

Strategic Journal of Business & Change Management Pub Date : 2023-11-06 DOI:10.61426/sjbcm.v10i4.2799

HAMADI HAMISI MWAZITO, STEPHEN MWANZIA, PhD

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Abstract

There was a recent interest of state corporations borrowing funds to manage their operations. This begged the question why debt financing was being opted for running state corporations. It was in this regard that this study examined the effect of debt financing on financial performance of selected state corporations in Kenya. The study was guided by the following specific objectives: To determine the effect of bonds on financial performance of selected state corporations, to assess the effect of debentures on financial performance of selected state corporations, to assess the effect of bank loans on financial performance of selected state corporations and to evaluate the effect of factoring on financial performance of selected state corporations. To underpin the study findings, information asymmetry and transaction cost theory was used. The study adopted descriptive survey study design and it had a target 206 state-owned corporations out of which a sample of 136 was drawn from using Yamane’s formulae. A structured questionnaire was used to collect information from finance and chief accountants of the selected state-owned corporations. Data analysis was done using SPSS version 26. The analysis indicated there is a strong positive relationship between debt financing and financial performance since. However, the study indicated that there is a medium positive relationship between bonds and financial performance. Further, the study showed that there was a very weak positive relationship between debentures and financial performance. It was clear that analysis indicated that there was a weak positive relationship between bank loans and financial performance. Lastly the study also showed that there was a very weak positive relationship between factoring and financial performance. Key Terms: Bank Loans, Bond, Debenture, Debt Financing, Factoring, Financial Performance CITATION : Mwazito, H. H., & Mwanzia, S. (2023). Effect of debt financing on financial performance of selected state corporations in Kenya. The Strategic Journal of Business & Change Management, 10 (4), 961 – 978. http://dx.doi.org/10.61426/sjbcm.v10i4.2799

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债务融资对肯尼亚选定国有企业财务绩效的影响

最近出现了一种兴趣，即国有企业借入资金来管理自己的业务。这就引出了一个问题:为什么国有企业的运营选择了债务融资?正是在这方面，本研究审查了债务融资对肯尼亚某些国营公司财务业绩的影响。本研究以以下具体目标为指导:确定债券对选定国有企业财务绩效的影响，评估债券对选定国有企业财务绩效的影响，评估银行贷款对选定国有企业财务绩效的影响，评估保理对选定国有企业财务绩效的影响。为了支持研究结果，使用了信息不对称和交易成本理论。本研究采用描述性调查研究设计，以206家国有企业为研究对象，利用Yamane公式抽取136家样本。采用结构化问卷调查的方式，从选定的国有企业的财务和总会计师那里收集信息。数据分析使用SPSS 26。分析表明，债务融资与财务绩效之间存在很强的正相关关系。然而，研究表明，债券与财务绩效之间存在中等正相关关系。此外，研究表明，债券与财务业绩之间存在非常微弱的正相关关系。很明显，分析表明，银行贷款与财务业绩之间存在微弱的正相关关系。最后，研究还表明保理与财务绩效之间存在非常弱的正相关关系。关键词:银行贷款，债券，债券，债务融资，保理，财务业绩引用:Mwazito, H. H.， &;姆万齐亚，S.(2023)。债务融资对肯尼亚选定国有企业财务绩效的影响。商业战略杂志;管理学报，10(4)，961 - 978。http://dx.doi.org/10.61426/sjbcm.v10i4.2799

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Strategic Journal of Business & Change Management

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