Effect of cost management strategies on the financial performance of manufacturing companies listed on the Nairobi securities exchange

Abstract

A number of cost management strategies have been studied before to understand their effects on financial performance. This study sort to find the effects of selected strategies namely; supply chain management, labour management and stock management and their effects on financial performance of manufacturing companies. The study use causal research design specifically multi – variance linear regression model. It studied effects of various variables on another and the extend of causation was documented. Study population was six out of eight manufacturing companies listed, on Nairobi security exchange. The two were accepted due to inaccessibility of data. The variables were positively related to financial performance of the manufacturing companies. The study recommended of the management focused on managing cost of distribution, cost of labour and cost of stock. That is ensuring just enough stock is available, the supply chain is reasonable and labour is minimal and efficient