Abstract: The purpose of this study was to determine the effect of financial risk on financial performance of Supermarkets in Nairobi County. The specific objectives of the study will included; To examine the effect of credit risk, liquidity risk, operational risk and market risk on financial performance of supermarkets in Nairobi county, Kenya. The study adopted the finance distress theory, Firm value maximization theory and extreme value theory. The study used a descriptive research design with a quantitative approach. The target population for this study was 13 large-scale supermarkets licensed by county government of Nairobi. Study employed sampling as a census of entire large-scale supermarkets in Nairobi County. Secondary data for this study was collected using data collection sheets filled by accountants of various super markets Nairobi County. Multi regression analysis was used to establish the effect of financial risk on financial performance of supermarkets in Nairobi County. The findings of the study showed that out of the four financial risks studied, three including liquidity, operational and market risks had statistically significant effect on financial performance of large-scale supermarkets in Kenya liquidity risk. Credit risk did not have a significant effect on financial performance of the supermarkets studied.
Keywords: Credit Risk, Operational Risk, Market risk, liquidity risk and financial performance.
Title: Effect of Financial Risk on Financial Performance of Large Scale Supermarkets in Nairobi County, Kenya
Author: Wangalwa Matayo, Prof. Willy Muturi
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
Research Publish Journals
