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Effect of Debt Financing on Financial Performance of Aquaculture Enterprises in Lake Region Economic Block, Kenya

Author

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  • Katherine N. Wambay

    (Department of Business Management, University of Eldoret, Kenya)

  • Kimani Maina

    (Department of Economics, Accounting and Finance, Jomo Kenyatta University of Agriculture and Technology, Nairobi, Kenya)

  • Josephat O. Oluoch

    (Department of Economics, Accounting and Finance, Jomo Kenyatta University of Agriculture and Technology, Nairobi, Kenya)

Abstract

Research Aims: This study sought to analyze the effect of debt financing on the financial performance of aquaculture enterprises in the Lake Region Economic Bloc, Kenya. Debt financing has been limited due to financial risk involved in using the traditional methods of financing; this has caused the industry and infrastructure to develop slowly in Kenya. Design/methodology/approach: The study was based on the cross-sectional research design. Purposive sampling was used to select specific beach management units and county officers. A sample of 248 group members and 10 county officers were selected to participate in the study out of a possible 700 fishermen on the beaches sampled out, making a total sample of 258 respondents. Questionnaires were used to collect primary data. Secondary data was used to collect data on financial performance. Research Findings: Multiple regression analysis was conducted to evaluate the relationship between debt financing and financial performance. The results revealed that (r=0.592, p

Suggested Citation

  • Katherine N. Wambay & Kimani Maina & Josephat O. Oluoch, 2024. "Effect of Debt Financing on Financial Performance of Aquaculture Enterprises in Lake Region Economic Block, Kenya," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(7), pages 3257-3266, July.
    • Handle: RePEc:bcp:journl:v:8:y:2024:i:7:p:3257-3266
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    References listed on IDEAS

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    1. Hall, S.J. & Delaporte, A. & Phillips, M.J. & Beveridge, M. & O'Keefe, M. & The WorldFish Center, 2011. "Blue frontiers: managing the environmental costs of aquaculture," Monographs, The WorldFish Center, number 39461, April.
    2. Darush Yazdanfar & Peter Öhman, 2015. "Debt financing and firm performance: an empirical study based on Swedish data," Journal of Risk Finance, Emerald Group Publishing Limited, vol. 16(1), pages 102-118, January.
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