dc.contributor.author | Ouma, Victor O | |
dc.date.accessioned | 2023-03-08T06:49:40Z | |
dc.date.available | 2023-03-08T06:49:40Z | |
dc.date.issued | 2022 | |
dc.identifier.uri | http://erepository.uonbi.ac.ke/handle/11295/163216 | |
dc.description.abstract | Working Capital is central to daily operations of every business. Working Capital Financing
adopted by a firm take either Aggressive (where ratio is above 0.5) or Conservative (where ratio
as below 0.5). The study explored effect of Working Capital Financing plus financial flexibility
on financial performance of non-financial entities quoted at Nairobi Securities Exchange, Kenya.
First study objective was to establish link of Working Capital Financing with financial
performance of non-financial entities quoted at Nairobi Securities Exchange. Second study
objective was to determine moderating impact of financial flexibility on linkage of Working
Capital Financing with financial performance of non-financial entities quoted at Nairobi
Securities Exchange. Study was anchored mainly on Risk Return Trade-off Theory supported by
Resource based Theory plus Agency Theory. Study adopted correlation research design. The
Secondary panel data for 31 non-financial entities were gathered for five years, resulting in 155
firm-year end observations. The data were analyzed by descriptive statistics, Pearson correlation,
panel data regression to ascertained linkage of Working Capital Financing with entity Return on
Asset and hierarchical multiple regression determined the moderating influence of financial
flexibility on linkage of Working Capital Financing with entity financial performance. Study
established negative significant linkage of Working Capital Financing with Return on Asset.
Study further established negative and significant moderating influence of the financial
flexibility on linkage of Working Capital Financing with entity Return on Asset. Study
concluded that smaller portion of short-term debt improve entity performance as greater levels of
short-term debt reduces firm performance. Similarly, study concludes that firms should consider
short-term external financial flexibility without affecting firm performance and consider internal
financial flexibility that might present extra benefit to an entity to lessen adverse effect of
hazardous WCF on firm financial performance by mitigating hitches of underinvestment plus
diminishes cost of financial misery due to resource constraint. | en_US |
dc.language.iso | en | en_US |
dc.publisher | University of Nairobi | en_US |
dc.rights | Attribution-NonCommercial-NoDerivs 3.0 United States | * |
dc.rights.uri | http://creativecommons.org/licenses/by-nc-nd/3.0/us/ | * |
dc.title | Working Capital Financing, Financial Flexibility and Financial Performance of Non-financial Firms Listed at Nairobi Securities Exchange, Kenya | en_US |
dc.type | Thesis | en_US |