CAPITAL STRUCTURE AND CORPORATE PERFORMANCE OF MANUFACTURING COMPANIES LISTED IN NAIROBI SECURITIES EXCHANGE
Wilmot Okello Adera - Department of Commerce and Economic Studies, Jomo Kenyatta University of Agriculture and Technology, Kenya
Wickliffe Anyango - Department of Commerce and Economic Studies, Jomo Kenyatta University of Agriculture and Technology, Kenya
Dr. Gladys Rotich - Department of Commerce and Economic Studies, Jomo Kenyatta University of Agriculture and Technology, Kenya
ABSTRACT
The study’s objective was to assess the effects of capital structure on corporate performance of manufacturing companies listed on the Nairobi Securities Exchange. The researcher adopted explanatory non-experimental research design and the study’s population consisted of listed manufacturing companies at the Nairobi Securities Exchange (NSE). The researcher sampled nine listed manufacturing firms. Research findings indicated that there exist a positive and significant correlation between long-term debts, ordinary share capital, preference share capital and reserves and corporate performance of manufacturing firms. The findings showed that a long-term debts, Ordinary share capital, preference share capital and revenue & capital reserves explains 72.9% of the variation in the corporate performance of manufacturing companies. The researcher concluded that there is a significant and positive relationship between corporate investment and corporate performance of manufacturing firms. Long-term debts, Ordinary share capital, preference share capital and revenue & capital reserves are positively related to corporate performance of manufacturing companies.
