Author : Wycliffe Motende
Publisher : GRIN Verlag
ISBN 13 : 3346015823
Total Pages : 55 pages
Book Rating : 4.3/5 (46 download)
Book Synopsis Effect of cash flow management activities on financial performance of manufacturing companies in Nairobi by : Wycliffe Motende
Download or read book Effect of cash flow management activities on financial performance of manufacturing companies in Nairobi written by Wycliffe Motende and published by GRIN Verlag. This book was released on 2019-09-13 with total page 55 pages. Available in PDF, EPUB and Kindle. Book excerpt: Bachelor Thesis from the year 2019 in the subject Economics - Finance, grade: 2, Kenyatta University, language: English, abstract: This study will target 735 manufacturing companies divided into 14 categories located in Nairobi. A stratified sampling method will be used to determine the population sample guided by Naasiuma Model to come the sample size. Secondary data will be collected based on the financial statements as well as data from KAM website. Collected data will be prepared and then analyzed by use of STATA software. Diagnostic tests will carried out to ensure that the classical linear modeling assumptions are not violated. Collected data will then be subjected to various analytical tools like Mean, Standard deviation, Correlation and Regression analysis so as to achieve the objective of the study. Finally the analyzed information will be presented in tables, charts and figures to aid in recommendation and future decision making. Cash flow shortfall has proved to be one of the issues facing manufacturing companies in Nairobi. Companies with cash flow problems have witnessed a lot of struggle when it comes to settling their credit commitments whenever they fall due. In some cases, the effect has resulted into extreme losses, low profits, business operation difficulty and high financial costs due to excessive borrowing. The general objective of this study is to determine the effect of cash flow management activities on the financial performance of manufacturing companies in Nairobi. To achieve this objective this study will examine how the three main components of cash flow statement component impact on the financial performance of companies under the scope. Cash flow activities according to Kew et al are cash flow from operating activities, cash flow from investing activities and cash flow from financing activities. To measure the financial performance of manufacturing companies, the study will apply two key financial ratios which include Return on Equity (ROE) and Return on Assets (ROA). Independent variables will be measured using net values of each activity as reported in the cash flow statement. The study will adopt a descriptive research design.