The impact of Macroecomic factors on financial performance of firms listed in energy and petroleum Subsector at the Nairobi securities exchange
The purpose of the study was to determine the effect selected macroeconomic variables on financial performance of energy and petroleum industry. Return on Asset (ROA) was used to as a measure of financial performance. A regression analysis model was used to regress ROA against the macroeconomic variables; GDP growth rate, average annual lending interest rate as calculated by CBK, real exchange rate (the rate at which KSH is exchanged to the USD) and inflation rate which is measured by annual percentage fluctuation in the consumer price index (CPI). This study was conducted for a period of ten years 2004 to 2013; secondary data used. The research study finding depicts results as follows; GPD growth rate have negative insignificant impact on energy and petroleum industry financial performance. Further the variables that have a positive significant effect is the interest rate and exchange rate have a positive significant impact on the financial performance of petroleum and energy subsector through the use of return on asset as the depended variable used to measure firm financial performance.
The following license files are associated with this item: