Factors Influencing the Role of Finance Professionals for Firms Listed at the Nairobi Securities Exchange

Abstract

The role of finance and accounting professionals is changing rapidly. Finance professionals are taking on greater management and consulting responsibilities as well as advising senior management on financial matters and taking a more active role in analyzing corporate operations. The purpose of the study was to investigate the factors influencing the changing role of finance professionals in the quoted firms in Kenya. The study used descriptive survey design. The population of this study was comprised of all the 60 firms quoted in the NSE. Due to the nature of the population- small and variable, no sampling was done and hence this was a census study. The sample under study was therefore all the 60 firms quoted in the NSE. The study collected primary data through the use of a researcher assisted questionnaire. Administration of the questionnaires was done by the researcher. The collected fully filled questionnaires were first edited then coded to facilitate statistical analysis. The data was analyzed through descriptive and inferential analysis through the help of Statistical Package for Social Science (SPSS) and the findings were then be presented in form of frequency distribution tables, bar charts and pie charts. A regression analysis was conducted to test and establish the form of relationship between variables. The study found out that the need to satisfy greater demand for public accountability and transparency, the pressure from stakeholders and need to manage shareholders relations influenced finance professionals roles. Increased regulations, technical specialized skills, changing information technology and competitive business environment had also influenced the changing roles. The study concludes that stakeholders' scrutiny, technical skills, strategic role, increasing regulation and the competitive business environment influence the changing roles of finance professionals in companies listed in the NSE. There has been greater demand from the public on accountability and transparency and reporting requirements that have created pressure on the finance professionals in a bid to meet the stakeholders’ demands as well as increasing the companies’ returns. The study recommends that the change in the role of the finance professionals should be supported by a change in required competences; Accounting and finance bodies also need to make changes on the finance courses curriculum so as to ensure that the skills acquired meets the market demand.