INFLUENCE OF DISCLOSURE OF ACCOUNTING AND FINANCIAL REPORTING SYSTEM ON FINANCIAL PERFORMANCE OF SUGAR FACTORIES IN WESTERN KENYA
Abstract
This study critically investigated the influence of disclosure of accounting and financial reporting system on financial performance of sugar factories in western Kenya. The study adopted descriptive survey research design and targeted 130 officers from sugar factories in Western Kenya. Sample size was determined using Taro Yamane’s proportional sampling technique formula. Primary data was collected by means of self-administered questionnaires then coded, cleaned and analyzed using descriptive and inferential statistics using (SPSS) software. Results were presented using tables for easy readability. Descriptive statistics involved use of percentages. Quantitative data was analyzed using descriptive and inferential statistics. Descriptive analysis summarized data in form of central tendency. Dispersion and inferential analysis was used to test hypotheses. Descriptive analysis included; frequencies, mean, standard deviation and percentages while inferential analysis involved correlation analysis and multiple linear regression analysis. The results revealed that disclosure of accounting and financial reporting systems positively and significantly influence the financial performance of sugar factories in Western Kenya. The study concluded that disclosure of accounting and financial reporting systems have significant influence on financial performance of sugar companies in Western Kenya. Therefore, the study recommended that the sugar companies should disclose information efficiently and timely to their stakeholders thereby improve their financial performance.
Key Words: Disclosure of Information, Accounting Systems, Financial Reporting System, Financial Performance
CITATION: Ijami, A., & Miroga, J. (2020). Influence of disclosure of accounting and financial reporting system on financial performance of sugar factories in Western Kenya. The Strategic Journal of Business & Change Management, 7 (4), 1191 – 1205.
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DOI: http://dx.doi.org/10.61426/sjbcm.v7i4.1853
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