ELECTED MACROECONOMIC VARIABLES AND FINANCIAL PERFORMANCE OF LISTED MANUFACTURING COMPANIES IN KENYA

MATE, EMMANUEL KAYALA

dc.contributor.author	MATE, EMMANUEL KAYALA
dc.date.accessioned	2023-05-30T07:09:25Z
dc.date.available	2023-05-30T07:09:25Z
dc.date.issued	2022-07
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dc.identifier.uri	http://erepository.kafuco.ac.ke/123456789/167
dc.description.abstract	he government of Kenya’s broad target under enhancing manufacturing is to increase the manufacturing share of gross domestic product from 8.4% to 15% to create more jobs but the target remains a mirage owing to the poor performance of the manufacturing sector over years where for instance, sector performance declined to 3.5% in 2019 compared to 4.4% in 2018. Studies globally, regionally and locally have been conducted to establish how macroeconomic variables affect profitability of companies. However, mixed results have been reported pointing to positive, negative, significant and insignificant effect making it unknown as to how economic growth, inflation and exchange rates influence performance of manufacturing firms. The purpose of this study was to establish the influence of selected macroeconomic variables on financial performance of listed manufacturing companies in Kenya. Specifically, the study aimed to; assess the influence of economic growth on financial performance of manufacturing firms registered at the NSE, evaluate the influence of inflation on financial performance of manufacturing firms registered at the NSE and examine the influence of exchange rate on financial performance of manufacturing firms registered at the NSE. The study was guided by; efficient market hypothesis, purchasing power parity and arbitrage pricing theory. This study adopted descriptive correlational research design grounded on panel data spanning 6 years from 2015 to 2020 with a target of 8 listed manufacturing firms. Panel data analysis was deployed to establish the influence of economic growth, inflation and exchange rates on financial performance. Economic growth and inflation had a positive significant influence while exchange rates showed negative influence on performance with coefficients 0.358, 2.764 and -1.532 respectively such that 1% increase in economic growth and inflation increased performance by 0.358% and 2.764% respectively while 1% increase in exchange rate decreased performance by 1.532%. The study recommends formulation of prudent macroeconomic policies including bail outs during pandemics are geared towards enhancing performance of manufacturing firms as envisaged under the Big four agenda and Vision 2030 blue print.	en_US
dc.language.iso	en	en_US
dc.title	ELECTED MACROECONOMIC VARIABLES AND FINANCIAL PERFORMANCE OF LISTED MANUFACTURING COMPANIES IN KENYA	en_US
dc.type	Thesis	en_US