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Asset Tangibility and Financial Performance of Non-Financial Firms Listed on the Nairobi Securities Exchange

Author

Listed:
  • Mabele, Eric Bunyasi
  • Musiega, Maniagi
  • Bulla, Denis
  • Ngala, Consolata

Abstract

Purpose: This article examines the effect of asset tangibility on the financial performance of non-financial firms listed on the Nairobi Securities Exchange.Design/Methodology/Approach: The study utilised secondary panel data for 34 listed non-financial companies from 2014 to 2023, which were audited. Descriptive statistics, diagnostic tests, correlation analysis, and fixed-effect regressions were used to analyse asset tangibility and financial performance based on return on assets.Findings: There was a negative correlation between asset tangibility and financial performance and a significant negative coefficient in the adjusted fixed-effects model. The bivariate model was negative and not significant, meaning that the impact is more apparent once the liquidity, leverage, and efficiency of operation factors are taken into account.Implications/Originality/Value: The study demonstrates that investing in tangible assets is not assured to enhance profitability in listed non-financial firms. Managers need to enhance the use of assets and not tie up capital in poorly performing assets.

Suggested Citation

  • Mabele, Eric Bunyasi & Musiega, Maniagi & Bulla, Denis & Ngala, Consolata, 2026. "Asset Tangibility and Financial Performance of Non-Financial Firms Listed on the Nairobi Securities Exchange," Sustainable Business and Society in Emerging Economies, CSRC Publishing, Center for Sustainability Research and Consultancy Pakistan, vol. 8(1), pages 183-192, March.
    • Handle: RePEc:src:sbseec:v:8:y:2026:i:1:p:183-192
    DOI: http://doi.org/10.26710/sbsee.v8i1.3785
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