INFLUENCE OF ETHICAL INVESTOR RELATIONS ON THE FINANCIAL PERFORMANCE OF LISTED FIRMS IN KENYA
DOI:
https://doi.org/10.47672/ajf.268Keywords:
Keywords, Ethical inventors' relations, Ethical leadership, financial performance, Listed FirmsAbstract
Purpose: The objective of the study was to investigate the influence of ethical investor relations on the financial performance of listed firms in Kenya.
Methodology: The study adopted a causal research design to establish the relationship between ethical leadership and financial performance of companies listed in the Nairobi Securities Exchange using correlation and regression analysis. Primary data was collected through a semi-structured questionnaire. Secondary data was collected from both the listed firms in the Nairobi Securities Exchange (NSE), and information from the sector regulator, the Capital Markets Authority (CMA). The target population of this study was 64 companies listed in the Nairobi Securities Exchange (NSE) with consistency being evaluated between the years 2011 to 2015. Data analysis was done using the Statistical Package for Social Scientists (SPSS).
Results: The study found out that there exists a strong relationship between ethical investor relations and financial performance. The study established that information disclosure, the practice of corporate ethics and vetting of board members being based on ability to achieve the firms' vision is essential for the listed firms.
Unique contribution to theory, practice and policy: The study recommends truthful disclosure of information, especially regarding financial statements of the firms.
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Copyright (c) 2017 Manduku Daniel Ogwoka, Dr. Juliana Namada, Dr. Damary Sikalieh
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