The Effect of Debt Financing on Financial Performance of Private Secondary Schools in Kajiado County
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Date
2017Author
Ng'ang'a, Denis, W
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
Debt financing decision is among the key financial decisions that are taken by firms since
debt financing has an effect on the financial performance. Leverage financing provides
the borrower with an opportunity to finance an investment on a short term source at the
same time spreading the cost of capital over time so as to meet the affordability and
budgetary constraints. This study set out to determine effect of debt financing on the
financial performance of private secondary schools in Kajiado County. The study applied
a descriptive research design and carried out a census of the 61 private secondary schools
in Kajiado County. The study used secondary data which was collected using a data
collection form. The data collection form obtained data for a period of three years from
2014 to 2016. Multiple linear regression was employed to ascertain the association
linking dependent variables and independent variables. The results found that the
relationship between debt financing and financial performance of private secondary
schools in Kajiado County was positive and insignificant and that the relationship
between revenue growth and financial performance of private secondary schools in
Kajiado County was positive and insignificant. The study also found that the relationship
between administrative efficiency and financial performance of private secondary schools
in Kajiado County was negative and significant while the relationship between
operational efficiency and financial performance of private secondary schools in Kajiado
County was negative and significant. The study concluded that debt financing does not
affect the financial performance of private secondary schools in Kajiado County. The
study also concluded that administrative efficiency and operational efficiency
significantly affect the financial performance of private secondary schools in Kajiado
County.
Publisher
University of Nairobi
Subject
The Effect of Debt Financing on Financial Performance of Private Secondary Schools in Kajiado CountyRights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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