Growth and Success of Listed Firms in Kenya

Gatobu Rintaugu Mugwika

doi:doi:10.11648/j.frontiers.20240401.13

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Growth and Success of Listed Firms in Kenya

Gatobu Rintaugu Mugwika

Published in Frontiers (Volume 4, Issue 1)

Received: 16 August 2023 Accepted: 21 September 2023 Published: 11 January 2024

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Abstract

The objective of this paper is to look at how Kenyan companies that are both sustainable and show signs of growth have fared in terms of the impact on the economy and as employment opportunities. It focuses on companies that are listed in the Nairobi Securities Exchange (NSE) and that have proved successful in terms of growth in their annual returns over a five-year period. They were purposively selected, were analyzed by looking at the official views and reflections of the principal manager of the company or the chair of the board of directors within a specified time frame. This is an exploratory study to separate listed profitable highly growing firms that operate within a developing economy and to recognise within them traits and/or characteristics that are common to them. Describing these firms and highlighting common features will help explain to some extent why they have been successful and that these practices, features and/or attributes could be embraced by other firms in their pursuit to become more successful and viable. The background of this study is the status of Kenyan firms’ financial wellbeing and their interactions with the activities of the securities market in Kenya. The study used an exploratory research approach, which is also called quasi-experimental research where researchers can conclude the cause-effect equation between two or more variables, where one variable is dependent on the other independent variable. The main aim being to look at how Kenyan firms that are both successful and are growing have progressed in terms of the impact on the economy and on employment opportunities. It focuses on firms that are listed in the Nairobi Securities Exchange (NSE) and that have shown success in terms of growth in their annual returns over a five-year period. They were purposively selected, were analysed by looking at the official views and reflections of the principal managers of the firm or the chair of the board of directors within a specified time frame. The research concluded that high levels of education, prior industry experience and entrepreneurial experience are paramount for growth and performance of firms that were included in the present study. This important aspect applied to both the executive directors as well as to members of the full board of directors of the said firms.

Published in	Frontiers (Volume 4, Issue 1)
DOI	10.11648/j.frontiers.20240401.13
Page(s)	17-24
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Firm Growth, Firms, Success, Kenya, Nairobi Securities Exchange

References

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[3]	Egessa, R. Maokomba, O. C., Musiega, D. Odieki, B. A., Musiega, G. M. (2013). Determinants of Dividend Payout Policy among Non-financial Firms on Nairobi Securities Exchange, Kenya. International Journal of Scientific & Technology Research, Vol. 2, Issue10.
[4]	Githira, W. C., Nasieku, T. (2015). Capital Structure Determinants among Companies quoted in Securities Exchange in East Africa. International Journal of Education and Research, Vol. 3, No. 5.
[5]	Githui, K. T., Kungu, G., Ayoko, A. (2015). Determinants of the performance of Firms Listed at the Nairobi Securities Exchange. Research Journal of Finance and Accounting, Vol. 6, No. 12.
[6]	Herrington, M., Kelley, D. (2012). African Entrepreneurship, Sub-Saharan African Regional Report. International Development Research Centre.
[7]	Kadongo, O., Makoaleli, T., Maina, L. (2014). Capital Structure, Profitability and Firm Value. Panel evidence of Listed Firms in Kenya. Munich Personal RePEc Archive, http://mpra.ub.uni muechen.de/57116/ MPRA Paper No. 57116.
[8]	Kajananthan, R., Achchunan, S. (2013). Corporate Governance Practices and Working Capital Management Efficiency: Special Reference to Listed Manufacturing Companies in Sri Lanka.
[9]	Korir, A., Cheruiyot. (2014). Board Demographics and Financial Performance of Firms Listed in NSE, Kenya. International Journal of Humanities and Social Science Vol. 4, No. 11 (1).
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[14]	Merson R (2011). Guide to managing growth: Turning success into even bigger success. The Economist. London: Profile Books.
[15]	Muhammad, S., Saminu, J. R., Usman, S. K., Ibrahim, F. B., Ahmad, T. H. (2015). The effect of working Capital Management on corporate Profitability: Evidence from Nigerian Food product Firms. Applied Finance and Accounting Vol. 1, No. 2.
[16]	Muiru, M. W., Inoti G. G., (2014). Impact of Acquisitions on Financial Performance of the acquiring companies in Kenya. A case of Listed acquiring Firms at the Nairobi Securities Exchange. Journal of Finance and Accounting Vol. 2 (5), pg. 108-115.
[17]	Mule, R. S., Mukras, M. S., Oginda, M. N. (2013). Ownership Concentration and Financial Performance of Listed Firms in Kenya: An econometric analysis using panel data. European Scientific Journal Vol. 9, No. 28.
[18]	Mwangi, L. W., Makau, S. M. Kosimbei, G. (2014). Effects of working capital Management on Performance of Non-Financial Companies listed on NSE, Kenya. European Journal of Business and Management, Vol. 6, No. 11.
[19]	Omondi, M. M., Muturi, W. (2013). Factors Affecting the Financial Performance of Listed Companies at the Nairobi Securities Exchange in Kenya. Research Journal of Finance and Accounting Vol. 4, No. 5.
[20]	Ongore, V. O., K’obonya P. O., Ogutu M., Bosire, E. M. (2015). Board Composition and Financial Performance: Empirical Analysis of Companies Listed at Nairobi Securities Exchange. International journal of economics and Financial Issues, Vol. 5, No. 1.
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APA Style

Mugwika, G. R. (2024). Growth and Success of Listed Firms in Kenya. Frontiers, 4(1), 17-24. https://doi.org/10.11648/j.frontiers.20240401.13

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ACS Style

Mugwika, G. R. Growth and Success of Listed Firms in Kenya. Frontiers. 2024, 4(1), 17-24. doi: 10.11648/j.frontiers.20240401.13

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AMA Style

Mugwika GR. Growth and Success of Listed Firms in Kenya. Frontiers. 2024;4(1):17-24. doi: 10.11648/j.frontiers.20240401.13

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@article{10.11648/j.frontiers.20240401.13,
  author = {Gatobu Rintaugu Mugwika},
  title = {Growth and Success of Listed Firms in Kenya},
  journal = {Frontiers},
  volume = {4},
  number = {1},
  pages = {17-24},
  doi = {10.11648/j.frontiers.20240401.13},
  url = {https://doi.org/10.11648/j.frontiers.20240401.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.frontiers.20240401.13},
  abstract = {The objective of this paper is to look at how Kenyan companies that are both sustainable and show signs of growth have fared in terms of the impact on the economy and as employment opportunities. It focuses on companies that are listed in the Nairobi Securities Exchange (NSE) and that have proved successful in terms of growth in their annual returns over a five-year period. They were purposively selected, were analyzed by looking at the official views and reflections of the principal manager of the company or the chair of the board of directors within a specified time frame. This is an exploratory study to separate listed profitable highly growing firms that operate within a developing economy and to recognise within them traits and/or characteristics that are common to them. Describing these firms and highlighting common features will help explain to some extent why they have been successful and that these practices, features and/or attributes could be embraced by other firms in their pursuit to become more successful and viable. The background of this study is the status of Kenyan firms’ financial wellbeing and their interactions with the activities of the securities market in Kenya. The study used an exploratory research approach, which is also called quasi-experimental research where researchers can conclude the cause-effect equation between two or more variables, where one variable is dependent on the other independent variable. The main aim being to look at how Kenyan firms that are both successful and are growing have progressed in terms of the impact on the economy and on employment opportunities. It focuses on firms that are listed in the Nairobi Securities Exchange (NSE) and that have shown success in terms of growth in their annual returns over a five-year period. They were purposively selected, were analysed by looking at the official views and reflections of the principal managers of the firm or the chair of the board of directors within a specified time frame. The research concluded that high levels of education, prior industry experience and entrepreneurial experience are paramount for growth and performance of firms that were included in the present study. This important aspect applied to both the executive directors as well as to members of the full board of directors of the said firms.
},
 year = {2024}
}

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TY  - JOUR
T1  - Growth and Success of Listed Firms in Kenya
AU  - Gatobu Rintaugu Mugwika
Y1  - 2024/01/11
PY  - 2024
N1  - https://doi.org/10.11648/j.frontiers.20240401.13
DO  - 10.11648/j.frontiers.20240401.13
T2  - Frontiers
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JO  - Frontiers
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PB  - Science Publishing Group
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UR  - https://doi.org/10.11648/j.frontiers.20240401.13
AB  - The objective of this paper is to look at how Kenyan companies that are both sustainable and show signs of growth have fared in terms of the impact on the economy and as employment opportunities. It focuses on companies that are listed in the Nairobi Securities Exchange (NSE) and that have proved successful in terms of growth in their annual returns over a five-year period. They were purposively selected, were analyzed by looking at the official views and reflections of the principal manager of the company or the chair of the board of directors within a specified time frame. This is an exploratory study to separate listed profitable highly growing firms that operate within a developing economy and to recognise within them traits and/or characteristics that are common to them. Describing these firms and highlighting common features will help explain to some extent why they have been successful and that these practices, features and/or attributes could be embraced by other firms in their pursuit to become more successful and viable. The background of this study is the status of Kenyan firms’ financial wellbeing and their interactions with the activities of the securities market in Kenya. The study used an exploratory research approach, which is also called quasi-experimental research where researchers can conclude the cause-effect equation between two or more variables, where one variable is dependent on the other independent variable. The main aim being to look at how Kenyan firms that are both successful and are growing have progressed in terms of the impact on the economy and on employment opportunities. It focuses on firms that are listed in the Nairobi Securities Exchange (NSE) and that have shown success in terms of growth in their annual returns over a five-year period. They were purposively selected, were analysed by looking at the official views and reflections of the principal managers of the firm or the chair of the board of directors within a specified time frame. The research concluded that high levels of education, prior industry experience and entrepreneurial experience are paramount for growth and performance of firms that were included in the present study. This important aspect applied to both the executive directors as well as to members of the full board of directors of the said firms.

VL  - 4
IS  - 1
ER  -

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Author Information

Gatobu Rintaugu Mugwika

School of Business & Economics, Meru University of Science & Technology (MUST), Meru, Kenya

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APA Style

Mugwika, G. R. (2024). Growth and Success of Listed Firms in Kenya. Frontiers, 4(1), 17-24. https://doi.org/10.11648/j.frontiers.20240401.13

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ACS Style

Mugwika, G. R. Growth and Success of Listed Firms in Kenya. Frontiers. 2024, 4(1), 17-24. doi: 10.11648/j.frontiers.20240401.13

Copy | Download

AMA Style

Mugwika GR. Growth and Success of Listed Firms in Kenya. Frontiers. 2024;4(1):17-24. doi: 10.11648/j.frontiers.20240401.13

Copy | Download

@article{10.11648/j.frontiers.20240401.13,
  author = {Gatobu Rintaugu Mugwika},
  title = {Growth and Success of Listed Firms in Kenya},
  journal = {Frontiers},
  volume = {4},
  number = {1},
  pages = {17-24},
  doi = {10.11648/j.frontiers.20240401.13},
  url = {https://doi.org/10.11648/j.frontiers.20240401.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.frontiers.20240401.13},
  abstract = {The objective of this paper is to look at how Kenyan companies that are both sustainable and show signs of growth have fared in terms of the impact on the economy and as employment opportunities. It focuses on companies that are listed in the Nairobi Securities Exchange (NSE) and that have proved successful in terms of growth in their annual returns over a five-year period. They were purposively selected, were analyzed by looking at the official views and reflections of the principal manager of the company or the chair of the board of directors within a specified time frame. This is an exploratory study to separate listed profitable highly growing firms that operate within a developing economy and to recognise within them traits and/or characteristics that are common to them. Describing these firms and highlighting common features will help explain to some extent why they have been successful and that these practices, features and/or attributes could be embraced by other firms in their pursuit to become more successful and viable. The background of this study is the status of Kenyan firms’ financial wellbeing and their interactions with the activities of the securities market in Kenya. The study used an exploratory research approach, which is also called quasi-experimental research where researchers can conclude the cause-effect equation between two or more variables, where one variable is dependent on the other independent variable. The main aim being to look at how Kenyan firms that are both successful and are growing have progressed in terms of the impact on the economy and on employment opportunities. It focuses on firms that are listed in the Nairobi Securities Exchange (NSE) and that have shown success in terms of growth in their annual returns over a five-year period. They were purposively selected, were analysed by looking at the official views and reflections of the principal managers of the firm or the chair of the board of directors within a specified time frame. The research concluded that high levels of education, prior industry experience and entrepreneurial experience are paramount for growth and performance of firms that were included in the present study. This important aspect applied to both the executive directors as well as to members of the full board of directors of the said firms.
},
 year = {2024}
}

Copy | Download

TY  - JOUR
T1  - Growth and Success of Listed Firms in Kenya
AU  - Gatobu Rintaugu Mugwika
Y1  - 2024/01/11
PY  - 2024
N1  - https://doi.org/10.11648/j.frontiers.20240401.13
DO  - 10.11648/j.frontiers.20240401.13
T2  - Frontiers
JF  - Frontiers
JO  - Frontiers
SP  - 17
EP  - 24
PB  - Science Publishing Group
SN  - 2994-7197
UR  - https://doi.org/10.11648/j.frontiers.20240401.13
AB  - The objective of this paper is to look at how Kenyan companies that are both sustainable and show signs of growth have fared in terms of the impact on the economy and as employment opportunities. It focuses on companies that are listed in the Nairobi Securities Exchange (NSE) and that have proved successful in terms of growth in their annual returns over a five-year period. They were purposively selected, were analyzed by looking at the official views and reflections of the principal manager of the company or the chair of the board of directors within a specified time frame. This is an exploratory study to separate listed profitable highly growing firms that operate within a developing economy and to recognise within them traits and/or characteristics that are common to them. Describing these firms and highlighting common features will help explain to some extent why they have been successful and that these practices, features and/or attributes could be embraced by other firms in their pursuit to become more successful and viable. The background of this study is the status of Kenyan firms’ financial wellbeing and their interactions with the activities of the securities market in Kenya. The study used an exploratory research approach, which is also called quasi-experimental research where researchers can conclude the cause-effect equation between two or more variables, where one variable is dependent on the other independent variable. The main aim being to look at how Kenyan firms that are both successful and are growing have progressed in terms of the impact on the economy and on employment opportunities. It focuses on firms that are listed in the Nairobi Securities Exchange (NSE) and that have shown success in terms of growth in their annual returns over a five-year period. They were purposively selected, were analysed by looking at the official views and reflections of the principal managers of the firm or the chair of the board of directors within a specified time frame. The research concluded that high levels of education, prior industry experience and entrepreneurial experience are paramount for growth and performance of firms that were included in the present study. This important aspect applied to both the executive directors as well as to members of the full board of directors of the said firms.

VL  - 4
IS  - 1
ER  -

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