CAPITAL STRUCTURE AND FINANCIAL PERFORMANCE OF AGRICULTURAL FIRMS LISTED AT THE NAIROBI SECURITIES EXCHANGE
Abstract
The capital structure and financial performance of agricultural companies listed on the Nairobi Securities Exchange were the main subjects of this study. The study's primary goal was to ascertain how listed agricultural companies' capital structure and financial performance relate to one another. The Capital Structure Theory served as the study's pillar. The study made use of secondary data that was gathered from the targeted institutions' annual reports during the study period. The study's primary independent variable was capital structure, as determined by the debt-to-equity ratio for the years 2019 through 2024, while the dependent variable was financial performance, as determined by the ROA ratio. The study's control variables were the tangibility of assets, liquidity, and organizational scale. The total asset sizes of all Kenyan agricultural enterprises that were listed on a public exchange between 2019 and 2024 were used to calculate organizational size using Log, Descriptive and regression analysis were used to examine the data gathered on these factors. The independent study variables could explain about 34.4% of the total variations in the financial performance of agricultural companies listed on the NSE, according to the study model's r-squared of 0.344.
Key Words: Capital structure, Liquidity, Tangibility of Assets, Firm Size
CITATION: Barusei, E., & Miroga, J. (2025). Capital structure and financial performance of agricultural firms listed at the Nairobi Securities Exchange. The Strategic Journal of Business & Change Management, 12 (2), 1085 – 1096. http://dx.doi.org/10.61426/sjbcm.v12i2.3259
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DOI: http://dx.doi.org/10.61426/sjbcm.v12i2.3259
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