| dc.description.abstract | There are numerous factors that affect the decision making of an investment plan.
The main
purpose of investing is to earn a return. If the fu
ture returns from all available investments were
known with certainty, an investor would certainly choose that investment which offers the
highest rate of return over the required period of time but in practice the world is uncertain.
The
importance of Inv
estment decisions on financial performance of firms cannot be over
emphasized since many of the factors that contribute to business failure can be addressed using
strategies and financial decisions that drive growth and the achievement of organizational
ob
jectives
.
Studies on the relationship between various financing decisions and performance
have
however
produced mixed results.
It is against this background that this study
was
carried
o
ut.
The main objective of the study was t
o establish the Effect of Inv
estment Decision on the
performance of firms listed in the Nairobi Securities Exchange
.
The study employ
ed
a
descriptive research design.
T
he target population of the study as at 31
st
December 2013
was
all
the 61companies listed at the Nairobi Securities E
xchange, under the main segment.
The study
a
dopt
ed
a census approach because of the small number of non
-
financial companies in
the NSE.
Both descriptive and inferential statistics were used in data analysis.
The study utilize
d
panel
data which consist
ed
of
time series and cross
-
sections.
Results revealed good, significant and
positive correlation
s
between ROA and
all the predictor variables, that is.,
Investment Decision,
Financial Leverage
and
Liquidity | en_US |
