Sep 2026· Journal of Accounting and Finance in Emerging Economies· Vol 12· 0 citations· 14 references
Abstract
Purpose: This article examines the effect of leverage on the financial performance of non-financial firms listed on the Nairobi Securities Exchange.
Design/Methodology/Approach: The article used panel data from the listed non-financial companies in secondary data format for a period of 34 years (2014-2023), yielding 340 firm-year observations. The descriptive statistics, diagnostic tests, correlation analysis, and fixed-effects regression were used. The return on assets (ROA) evaluates financial performance.
Findings: The financial performance had a negative and significant correlation with leverage. The negative coefficient for the bivariate fixed-effects model was -0.123256 with a p-value of 0.000, and for the adjusted firm-characteristics model, it was -0.51321 with a p-value of 0.039.
Implications/Originality/Value: The results demonstrate that debt reliance reduces profitability for non-financial firms when they come under interest pressure, under repayment burden, and are subjected to operating risk. The managers should not be reckless and should make financing decisions that do not exceed their ability to generate income, backed by cash flow tests.
This paper empirically examines the impact of financial risk management on firm value using a sample of non-financial firms listed in India. Financial risks examined within the study include financial leverage, liquidity, foreign exchange risk, and interest-based financial risk. Balanced panel data used in the empirica...
P. Uma· EPRA International Journal o...· 0 citations
This study aims to analyze the effects of the level of financial statement disclosure (Disclosure Index) and Leverage, proxied by the Debt-to-Equity Ratio (DER), on financial performance, proxied by Return on Assets (ROA), in consumer goods companies listed on the Indonesia Stock Exchange for the period 2021–2024. This...
Winovel Novano Takasingking, Wenny A. Ginting, Dominikus Andreo Maryadi· el-jizya Jurnal Ekonomi Isla...· 0 citations
In emerging markets, where businesses frequently have low financial resources and relatively weak institutional supervision, aggressive accounting techniques continue to undermine the credibility of financial reporting. This study examined firm-specific determinants of income smoothing practices among firms listed at N...
Timothy Kalume Kahindi, Dr. Isaac Otiende Ojung’a, Prof. Wahida Mahmud Bana et al.· International Journal of Res...· 0 citations
This paper examined the effect of accounting conservatism on firm value among non-financial firms listed on the Nairobi Securities Exchange. The study was anchored in Signaling Theory and adopted a positivist philosophy and an explanatory longitudinal design. The target population comprised 40 non-financial listed firm...
Shadrack K. Ronoh· Journal of Finance and Accou...· 0 citations
Firm value is a central indicator of investors' expectations regarding a company's capacity to generate sustainable returns, while financial performance provides information about profitability, liquidity, efficiency, capital structure, and risk. In emerging capital markets, the extent to which these financial characte...
M. Ben Moussa· ECONOMICS, FINANCE AND MANAG...· 0 citations
This study sought to examine the relationship between interest rate sensitivity and the market value of non-financial firms listed on the Nairobi Securities Exchange (NSE) in Kenya. This study was motivated by the recognition that changes in interest rates can influence firms' financing costs, investment decisions, pro...
Onyango Collins Omondi, Nixon Oluoch Omoro, L. Otieno· African Development Finance...· 0 citations
We use cookies to run the site and, with your consent, for analytics and to show ads.
See our Cookie Policy.
