dc.description.abstract | Political risk and its analysis
have changed over the last few decades. The effect of political
risk on the financial performance of the airline industry especially in Kenya has received
little attention in academic inquiry. The airline business depends on the wellbeing of
international
trade and the stability of the markets. It is interesting to study how Kenya
Airways is affected by the political risks in their market. It is in this light that the study
sought to fill the existing gap in this area of study by answering the following res
earch
question: What is the effect of political risk on the financial performance of Kenya Airways
Limited?
The objective of the study was to
determine the effects of political risk on financial
performance of Kenya Airways limited
. Secondary Data was coll
ected from Central Bank
and Kenya Airways and multiple regression analysis used in the data analysis.
From the findings on the
Adjusted R squared is the study found that there was variation of
79.7% on financial
performance of Kenya Airways dues
to chan
ges in
inflation rate, political
risk, size of the company, gross domestic product and liquidity of the firm,
this was an
indication that 79.7% changes in financial
performance of Kenya Airways Limited could be
accounted
to changes in
inflation rate, poli
tical risk, size of the company, gross domestic
product and liquidity of the firm
. The study futher revealed that that there was strong postive
relationship between
inflation rate, political risk, size of the company, gross domestic
product, liquidity of t
he firm and
financial
performance of Kenya Airways Limited.
The study revealed that political risk in Kenya negatively affect the financial performance of
Kenya Airways, thus the study concludes that political risk in the country negatively affects
the f
inancial performance of Kenya Airways Limited.
The study established that financial
performance of Kenya Airways was strongly affected by changes in
inflation rate, political
risk, and size of the company, gross domestic product and liquidity of the firm
.
The study
recommends that there is need for the government to control the country political risk as it
was found that political risk negatively affect the financial performance of Companies . The
study further recommends that there is need for the govern
ment to control the country
inflation rate through various fiscal policies, as it was revealed that unit increase inflation
rate negatively affects financial performance of Companies. | en_US |