dc.contributor.author | Mwangi, Beatrice W | |
dc.date.accessioned | 2024-06-04T07:57:44Z | |
dc.date.available | 2024-06-04T07:57:44Z | |
dc.date.issued | 2023 | |
dc.identifier.uri | http://erepository.uonbi.ac.ke/handle/11295/164957 | |
dc.description.abstract | Financial performance is paramount for the success of any profit oriented organization. The good financial performance or lack thereof in any organization reflects how effectively and efficiently management is using a company's resources. Capital structure decision is among the most crucial decisions finance managers have to make in coming up with the most suitable capital structure mix. Despite the numerous views on capital structure, the ideal capital structure has not yet been found for the insurance industry in Kenya. Therefore, research into the relationship between capital structure and insurance businesses' financial performance was necessary. The purpose of this study was to ascertain how the capital structure of insurance companies listed on the NSE affects their financial performance. Three theories—trade-off, Modigliani and Miller, and Pecking Order theories—served as the foundation for the investigation. The research design used was descriptive. Quantitative information was obtained from the six insurance companies included on the NSE's annual reports. The technique of panel regression analysis was utilised to determine the correlation between the variables under investigation. The financial performance of insurance companies listed at the NSE was found to be adversely affected by capital structures, as assessed by the debt ratio, but this effect was negligible. A further negative and negligible impact of the control variables on the financial performance of insurance companies listed on the NSE was the firm's size. When it came to the financial performance of insurance companies listed at the NSE, liquidity showed a positive but statistically insignificant influence, while the firm's age showed a negative effect. The significant negative effect of the age of a firm on financial performance underscores the need for continuous monitoring and proactive measures to adapt to market changes and consumer preferences. Regular strategic reviews and innovative initiatives can counterbalance potential adverse effects associated with the aging of firms. | 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.subject | Financial Performance of Insurance Firms | en_US |
dc.title | Effects of Capital Structure on Financial Performance of Insurance Firms Listed at the Nairobi Securities Exchange | en_US |
dc.type | Thesis | en_US |