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Effects of Liquidity on Financial Performance of Non-Financial Institutions’ Listed at Nairobi Securities Exchange, Kenya

Author

Listed:
  • Rebecca Jeruto Keitany

    (Department of Accounting and Finance, School of Business, Kenyatta University, Kenya)

  • Dr. Fredrick Warui

    (Department of Accounting and Finance, School of Business, Kenyatta University, Kenya)

Abstract

Merger has been undergoing in organizations in Kenya with the main focus on financial performance improvement. However, most of these organizations have never realized their financial targets. Therefore, this study sought to establish the effects of liquidity on financial performance of non-financial institutions listed at the Nairobi Securities Exchange in Kenya. An exploratory research was used. Three non-financial institutions namely: Car and General (C&G) and Cummins, Unga group Holdings and Kenolkobil were targeted. The study used secondary data collection sheet which involved the documentary reviews of data available in the released financial statements, and annual reports for the last 10 years, that is, 2011 to 2020. Analysis of quantitative data was through the use of descriptive statistics that included mean and standard deviation. In addition, determination of how variables relate to each other was done using inferential statistics specifically using analysis of multiple regression. The study established that liquidity had a significant effect on financial performance as indicated by t-value (t= 2.781, p

Suggested Citation

  • Rebecca Jeruto Keitany & Dr. Fredrick Warui, 2021. "Effects of Liquidity on Financial Performance of Non-Financial Institutions’ Listed at Nairobi Securities Exchange, Kenya," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 5(10), pages 632-636, October.
    • Handle: RePEc:bcp:journl:v:5:y:2021:i:10:p:632-636
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    References listed on IDEAS

    as
    1. Fluck, Zsuzsanna & Lynch, Anthony W, 1999. "Why Do Firms Merge and Then Divest? A Theory of Financial Synergy," The Journal of Business, University of Chicago Press, vol. 72(3), pages 319-346, July.
    2. Agnes Ogada & Amos Njuguna & George Achoki, 2016. "Effect of Synergy on Financial Performance of Merged Financial Institutions in Kenya," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 8(9), pages 199-207, September.
    3. Abbas, Qamar & Hunjra, Ahmed Imran & Azam, Rauf I & Ijaz, Muhammad Shahzad & Zahid, Maliha, 2014. "Financial performance of banks in Pakistan after Merger and Acquisition," MPRA Paper 60790, University Library of Munich, Germany.
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