Abstract: This study sought to determine the effect of cash flow management on financial performance of listed companies at the Nairobi Securities Exchange. The research designs that were employed were casual and correlational research techniques. A census was done on 54 organizations that were listed at the Nairobi Securities Exchange during the period 2013-2017. Study data was obtained from the companies yearly audited financial statements for five years duration between 2013 and 2017. Data was analyzed using both descriptive and inferential statistics. Multiple linear regression analysis model was used to determine the association between the research variables. The results of the study indicated that there existed a positive and significant relationship between cash flow from operating activities and the financial performance of listed companies at the Nairobi Securities Exchange (β=0.621, p-value=0.006); a negative and significant relationship between cash flow from investing activities and financial performance of listed companies at the Nairobi Securities Exchange (β=-0.387, p-value=0.029) and a positive and significant relationship between cash flow from financing activities and financial performance of listed companies at the Nairobi Securities Exchange (β=0.406, p-value=0.014). The study thus concluded that cash flow from operating activities, cash flow from investing activities and cash flow from financing activities were significant predictors of the level of financial performance among listed companies at the Nairobi Securities Exchange, Kenya.
Keywords: Cash flow management, financial performance, investment cash flow, financing cash flow, operating cash flow.
Title: Effect of Cash Flow Management on Financial Performance of Listed companies at Nairobi Securities Exchange; Kenya
Author: Patrick Mbehi Stom, Dr. Joshua Matanda Wepukhulu
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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