Relationship Between Macroeconomic Factors and Financial Performance of Firms Listed in Nairobi Securities Exchange (Nse)

Abstract

Financial Performance of every individual commercial organization narrates to its ability and soundness to chase capital vital for its procedures and to manage them so as to give it an advantageous edge over the competitors. Financial performance measurement depends intensely on the variables that relay directly to financial statement with regard to Nairobi Securities Exchange (NSE). United performance is portrayed through the usually NSE all share index (NASI) or the 20-share index (NSE 20). Macro-economic aspects are those that relay to the economy either at the local or national level. The aspect that have been pointed out and which have significant influence is; inflation, exchange rates, interest rates, public debt and the legal and regulatory environment. This particular research work sought to examine the association prevailing amongst key macro-economic variables and financial performance of NSE listed corporations in Kenya. Descriptive correlation investigation strategy has been applied. The research work centered focus on all the listed companies at the Nairobi (NSE) and covers timeline from 2008 to 2018.The study has utilized Secondary data extracted from NSE -all Share Index statistical data and KNBS Statistics for the interest rates, inflation rates and public debt. The data was collected from for the period between 2008 to 2018. The data gathered was analyzed with the support of the software Statistical Package for the Social Sciences (SPSS). The outcomes have been illustrated and explained in terms, measures of central tendency, correlation, regression and percentages. Also, a graphical chart to show trend movement demonstration has been done for both dependent and independent factors. The dataset was grouped and analyzed quarterly in a year from 2008-2018 with no specific arrangement in magnitude or time direction Conclusion and recommendation on development and possible upgrade were completed.