OPERATIONAL BUDGETARY PERFORMANCE AND ITS INFLUENCE ON EQUITY RETURNS OF MANUFACTURING FIRMS LISTED AT NAIROBI SECURITIES EXCHANGE IN KENYA
OPERATIONAL BUDGETARY PERFORMANCE AND ITS INFLUENCE ON EQUITY RETURNS OF MANUFACTURING FIRMS LISTED AT NAIROBI SECURITIES EXCHANGE IN KENYA
Charles Njure Kimondo - School of Business and Entrepreneurship, Jomo Kenyatta University of Agriculture and Technology, Kenya
Joshua Matanda Wepukhulu - School of Business and Entrepreneurship, Jomo Kenyatta University of Agriculture and Technology, Kenya
Oluoch Oluoch - School of Business and Entrepreneurship, Jomo Kenyatta University of Agriculture and Technology, Kenya
ABSTRACT
This study sought to identify how operational budgetary performance influence equity return of manufacturing firms listed at Nairobi Securities Exchange in Kenya. The study was anchored on theory of budgeting. The study employed both longitudinal and cross-sectional research design. The study’s target population included 7 listed manufacturing companies in Nairobi securities exchange. The data was collected from year 2008 to year 2021 for all the listed manufacturing companies. The current study relied on secondary data sources for the period between year 2008 and year 2021 that was gathered from Nairobi Securities Exchange, capital market authority library and in the annual reports of individual companies’ that was obtained from their websites. Descriptive and inferential measurements were used to evaluate the secondary data. Descriptive statistics comprised of the mean and the standard deviation. Inferential statistics on the other hand comprised panel multiple regression and Pearson's product moment correlation analysis. Analysis was conducted using Stata 14 software to produce tables, graphs, charts, diagrams and statistical parameter estimates. The study found that operational budgetary performance has positive influence on equity returns of listed manufacturing firms on Nairobi Securities Exchange in Kenya. The influence was found to be significant. This meant that operational budgetary performance has positive significant influence on equity returns of listed manufacturing firms on Nairobi Securities Exchange in Kenya. The study concluded that operational budgetary performance has positive significant influence on equity return of listed manufacturing firms in the Nairobi Securities Exchange.
