Effects of Use of Derivatives on Financial Performance of Companies Listed in the Nairobi Security Exchange
Journal Title: International Journal of Academic Research in Accounting, Finance and Management Sciences - Year 2014, Vol 4, Issue 4
Abstract
This study investigated the effects of use of derivatives on financial performance of companies listed in the Nairobi Securities Exchange (NSE). The objectives were; to determine how risk management, efficiency, price stabilization and price discovery in derivatives affect the financial performance of companies in NSE. This study targeted 11 companies that are listed in the NSE trading in the derivative market. Questionnaire was used to collect data from finance officers of the 11 companies listed and NSE officers. The data collected was analyzed by use of descriptive and inferential statistics. Qualitative responses were analyzed using content analysis. A correlation analysis was carried out to determine the performance of the companies listed in the NSE during the pre- and post- adoption of the financial derivatives by these companies. The findings indicated that apart from price stabilization other variables contributed positively to the financial performance of companies listed in NSE.
Authors and Affiliations
Luyali Newton Chanzu, Mouni Gekara
Keywords
Related Articles
- EP ID EP105438
- DOI 10.6007/IJARAFMS/v4-i4/1238
- Views 119
- Downloads 0
Causes of Interest Rate Volatility and its Economic Implications in Nigeria
Resource Consumption Accounting with Cost Dimension and an Application in a Glass Factory
Resource Consumption Accounting (RCA), which combines the systems of activity based costing and German cost accounting was developed as a result of the fact that traditional accounting systems remain insufficient especia...
Evaluation of the Credit Risk with Statistical analysis
The Impacts of Interest Rate Fluctuations on the Growth of Small and Medium Enterprises (SMEs) In Accra
The establishment and the sustenance of SMEs in Ghana is a perennial problem. The owners and managers of the sector believe that they face difficulty in operating in the period of slow economic growth. Despite a whole ra...
Impact Analysis of Microfinance on Crop Production in Ghana