dc.contributor.author | Motari, Joshua; A | |
dc.date.accessioned | 2019-01-30T06:41:03Z | |
dc.date.available | 2019-01-30T06:41:03Z | |
dc.date.issued | 2018 | |
dc.identifier.uri | http://hdl.handle.net/11295/105952 | |
dc.description.abstract | Corporate risk disclosure has been used by various stakeholders in decision-making. The
ultimate object of the information from the accounting report is to assist the users of the
information to predict the returns on their investment and make informed decisions
regarding the expected financial performance of the firm. The study aimed at determining
the effects of risk disclosure on Kenya’s listed companies’ financial performance. The
study was based on the signalling theory and stakeholder theory. The study engaged a
descriptive design. This study used the 64 firms listed in the Nairobi Stock Exchange as
by the year ended 2016. The research utilized both secondary and primary data sources of
data. The secondary data source were the financial statements of listed companies in
NSE. The primary source of data was self-administered questionnaires which had both
closed and open-ended questions. The study results indicated that operational risk
disclosure had a positive coefficient when used as a predictor of financial performance (β
= .463; p < 0.05). Study findings also showed that financial risk disclosure had a
significant positive effect on financial performance of the firms listed in the NSE (β =
.143; p < 0.05). Strategic risk disclosure had a positive effect on financial performance of
the firms listed in the NSE (β = .323; p < 0.05). The study makes the following
recommendations. First, listed companies should exhibit high standards and propensity to
disclose risks that the firms face in their financial statements. Secondly, management
should adopt and entrench an organization culture of effective and open communication.
They should reduce their power distance and encourage preparers of financial statements
not to disclose about the organization’s risks just as a matter of compliance but adopt the
practice as a way of informing and creating trust. Lastly, the study recommends that all
listed companies should aim at not just attaining the minimum of disclosure requirements
set by the NSE and CMA but should also aim at providing adequate information content,
increase ease of access of the information and have parsimonious presentation and also
ensure that their information is more understandable and comparable. | 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 | Effects of Risk Disclosure on Kenya’s Listed Companies’ Financial Performance | en_US |
dc.title | Effects of Risk Disclosure on Kenya’s Listed Companies’ Financial Performance | en_US |
dc.type | Thesis | en_US |