Effect of Firm Specific Factors on Financial Performance of Non-Financial Firms Listed At Nairobi Securities Exchange
Bongoye, Geoffrey Mose
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The many years question on how firms choose their capital structure and its effects on financial performance still remain unanswered. This study sought to explore the effect of firm specific factors on financial performance of non financial firms listed at NSE. The study used secondary panel data over the 5 year-period from 2011 to 2015 covering a target population of 37 non-financial firms listed at NSE. The findings of the study revealed that firm specific factors generally have a positive relationship with financial performance (measured by ROA) of nonfinancial firms listed at NSE. Firm size, firm liquidity and growth opportunities were found to have a positive relationship with financial performance as measured by ROA. On the other hand, asset tangibility has a significant negative relationship with financial performance of nonfinancial firms listed at NSE.