Effects of Corporate Social Investment on Firm Performance for Public Listed Firms in Kenya
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Date
2018Author
Chirchir, Winnie C
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
In recent years, firms have greatly increased the amount of resources allocated to
activities classified as Corporate Social Investment (CSI). While the CSI activities may
be consistent with the firm value maximization, should managers maximize the present
value of their firms’ cash flow in making strategic decisions that favor the shareholders or
sometimes choose to abandon wealth maximizing interests of firms’ shareholders for the
good of the other firm's stakeholders? The question was addressed through a research
study that investigated whether the activities addressing the issues of other stakeholders
will improve, have no impact or decrease the firm's financial performance. The researcher
compiled data from companies listed at the Nairobi Stock Exchange (NSE) over a period
of four years. According to the major findings of the study, CSI has a positive and
significant relationship to the firms’ financial performance based on Return on assets
(ROA) of the firm. The study concluded that there is a positive relationship between CSI
and financial performance of companies listed at the Nairobi Stock exchange and firms
should focus more CSI in order to improve its financial performance and hence
increasing the shareholders’ wealth. As recommendations for improvement all
stakeholders should embrace the importance of CSI in order to achieve the greater
performance efficiency. The government through legislation should develop a CSI index
for all companies and annually published in order to promote this emerging phenomenon
Publisher
university of nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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