dc.description.abstract |
Lack of full disclosure on the activities of the company has left shareholder at risk of
manipulated earnings as recently witnessed in with rising cases of scandals, frauds,
suspension and even delisting. This study seeks to examine the effect of voluntary
disclosure on financial performance of listed companies in Nairobi securities exchange.
To achieve this, the study sought to examine the effect of financial policy, investment
policy, sales growth, financial liquidity and research and development on financial
performance. The study was based on agency theory, signaling theory, stakeholder’s
theory and theory of capital needs. Correlation research design was applied to attain the
study objective. The target population was 64 companies currently listed in Nairobi
Securities Exchange. Purposive sampling was used to select 43 companies which have
been actively trading between 2006- 2015. Data was analyzed through the use STATA.
Results of the study revealed that there was a positive and significant relationship
between disclosures on financial policy, investment policy, sales growth, financial
liquidity, research and development and firm performance. Moreover, these voluntary
disclosures explained 63% of the variations in firm performance. |
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