dc.contributor.author | Njoroge, Fredrick K | |
dc.date.accessioned | 2013-11-12T07:07:06Z | |
dc.date.available | 2013-11-12T07:07:06Z | |
dc.date.issued | 2013-10 | |
dc.identifier.citation | Njoroge,Fredrick K.;October,2013.Relationship Between Interest Rates And Financial Performance Of Firms Listed At The Nairobi Securities Exchange. | en |
dc.identifier.uri | http://erepository.uonbi.ac.ke:8080/xmlui/handle/123456789/58565 | |
dc.description.abstract | The main purpose of the study was to assess the nature of the relationship between
interest rates and financial performance of firms listed at the Nairobi Securities
Exchange. The study is significant to the government in setting interest rates
appropriate to influence the level of borrowing and lending to encourage economic
development. The study will guide firms in making informed decision on borrowing
and lending to influence the financial performance of their firms positively, while
investors can use the results obtained from the research to make decisions on which
sectors of the economy to invest in at different levels of interest rates. The study
covered five years from 2008 to 2012 inclusive and the research was based on
secondary data obtained from published financial statements of the firms and
publications by the Central Bank of Kenya. The causal research design was employed
to assess the nature of the relationship between interest rates and financial
performance of firms listed at the Nairobi Securities Exchange. Regression analysis
was used to assess the nature of the relationship. Results obtained from the study
indicated a not significant positive relationship between interest rates and financial
performance. On disaggregation and grouping of the firms to their respective
industries, it was found that linear regression model can selectively be used to forecast
financial performance of firms’ at given levels of interest rates for firms where
statistically significant relationship was found. However, for firms which on further
analysis it was found that the effect of interest rates on financial performance was not
significant, other factors which influence financial performance need to be considered
and enhanced in order to significantly improve the financial performance of those
firms. | en |
dc.language.iso | en | en |
dc.publisher | University of Nairobi | en |
dc.title | Relationship Between Interest Rates And Financial Performance Of Firms Listed At The Nairobi Securities Exchange | en |
dc.type | Thesis | en |
local.publisher | College of Humanities and Social Sciences | en |