Relationship between cash flow and earnings performance measures for companies listed on Nairobi Stock Exchange

Abstract

This study sets out to determine the relationship between cash flows and earnings performance measures for companies listed at Nairobi Stock Exchange. Financial reports for listed companies were obtained from Nairobi Stock Exchange for the years 1998 to 2002. From the data extracted from the financial reports, multiple regression analysis was performed with the aid of a statistical package (SPSS) to establish the relationship between cash flows and earnings performance measures i.e Return on assets (ROA) , Return on equity (ROE) and Return on net assets ( RONA). The regression results displayed no significant relationship between cash flows and earnings performance measures for companies listed at Nairobi stock exchange