Asset Structure and Financial Performance of Listed Manufacturing and Allied Companies in Kenya

Main Article Content

Grace Ngunya Lucy Wamugo Mwangi, PhD

Abstract

The purpose of this study was to establish the effect of asset structure on the financial performance of listed manufacturing and allied companies in Kenya. The study employed a casual research design. A census of eight companies listed under the manufacturing and allied segment of the Nairobi Securities Exchange was taken. The study used secondary panel data. The study estimated a multiple panel regression equation in order to establish the effect of asset structure on the financial performance of listed manufacturing and allied companies in Kenya. The study used random effect regression following the results of the Hausman specification tests. The results of the regression estimation established that tangible fixed assets had a negative and insignificant effect on the return on assets. Intangible fixed assets were found to have a positive and insignificant effect on the return on assets. Current assets were determined to have a positive and significant effect on return on assets. The study concluded of the different asset classes, the performance of manufacturing and allied companies in Kenya depends on the current assets. The study recommends that the managers of listed manufacturing and allied companies should reconsider their holdings of fixed assets and current assets.

Article Details

How to Cite
Ngunya, G., & Mwangi, L. (2018, November 13). Asset Structure and Financial Performance of Listed Manufacturing and Allied Companies in Kenya. Researchacies International Journal of Business and Management Studies, 2(2), 17 - 31. Retrieved from https://researchacies.org/journal/index.php/RIJBMS/article/view/22
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Articles
Author Biographies

Grace Ngunya, Kenyatta University

Student

Lucy Wamugo Mwangi, PhD, Kenyatta University

Lecturer