Plagiarism Checker X - Report

Originality Assessment

22%
Overall Similarity

Date: Dec 29, 2022 Remarks: Moderate similarity Verify Report:

Matches: 3428 / 15335 words detected, you better improve View Certificate Online
Sources: 116 the document (if needed).

v 8.0.7 - WML 5
FILE - DECHASSA.PDF
 |Page WOLAITA SODO UNIVERSITY GRADUATESTUDIES DIRECTORATE

FACTORS DETERMINED FINANCIAL PERFORMANCE OF MEDIUM MANUFACTURING

ENTERPRISE: WOLAITA ZONE MSC RESEARCH PROPOSAL BY TIGIST

DECHASSA COLLEGE: BUSINESS AND ECONOMICS DEPARTMENT: ACCOUNTING

AND FINANCE PROGRAM: REGULAR Advisor: Mr. Tesfaye J. (Asst prof.) DECEMBER

2020 WOLAITA SODO, ETHIOPIA

i | P a g e APPROVAL SHEET Assessing the “factors determined financial performance

of medium manufacturing enterprise” in Wolaita zone. Submitted by:

__________________________ __________________

________________ Name of Student

Signature Date Approved by: 1.

____________________________ __________________ ________________

Name of Major Advisor Signature Date 2.

_____________________________ __________________ ________________

Co-Advisors’ Name Signature Date 3.

_____________________________ __________________ ________________

Name of Evaluator/Examiner Signature Date 4.

________________________________ __________________ ________________

Name of Chairman DGC Signature Date 5.

_____________________________ __________________ ________________

Name of PG Coordinator

Signature Date 6.

_____________________________ __________________ ________________

Name of Director GSD Signature Date

ii | P a g e Table of content Contents APPROVAL SHEET

................................................................................................................................ i Table of
content.....................................................................................................................................

. ii LIST OF ACRONYMS AND ABBREVIATIONS

............................................................................ iv

ABSTRACT............................................................................................. Error! Bookmark

not defined. CHAPTER ONE

.................................................................................................................................... 1

INTRODUCTION

................................................................................................................................. 1 1.1.

Background of the study .......................................................................................................

1 1.2. Statement of the Problem

...................................................................................................... 8 1.3. Research

Objectives .................................................................................................................... 9

1.3.1. General Objective

.................................................................................................................. 9 1.3.2 Specific

Objectives ................................................................................................................. 9 1.4.

Research Hypotheses ...........................................................................................................

10 1.5. Significance of the Study

..................................................................................................... 10 1.6. Scope of the Study

................................................................................................................ 11 1.7. Limitations

of the study ....................................................................................................... 12

CHAPTER TWO

................................................................................................................................. 13 2.

LITERATURE REVIEW

........................................................................................................... 13 2.1.

Introduction..............................................................................................................................

... 13 2.2. Theoretical Framework

............................................................................................................ 13 2.2.1. Modigliani-

Miller Theory .................................................................................................... 13 2.2.2

Trade-off Theory...................................................................................................................

15 2.2.4 Agency Theory

..................................................................................................................... 16 2.3 empirical

literature ....................................................................................................................... 18 2.5

Conceptual Framework

............................................................................................................. 24 CHAPTER

THREE ............................................................................................................................. 26

RESEARCH METHODOLOGY

....................................................................................................... 26 3.1

Introduction..............................................................................................................................

.... 26 3.2 Description of the Study

Area................................................................................................... 26 3.2 research design

........................................................................................................................... 27

iii | P a g e 3.3 target population

........................................................................................................................ 27 3.4

Sampling Frame

......................................................................................................................... 28 3.5

Sampling Technique

.................................................................................................................. 28 3.6 Sample

size ................................................................................................................................. 28

3.7 Types of data

.............................................................................................................................. 28 3.8

Data Collection Methods

........................................................................................................... 28 3.7 Data Collection

Procedures....................................................................................................... 29 3.9 Data

Analysis and Presentation ................................................................................................ 30

4.1 Work plan ...................................................................................... Error! Bookmark not

defined. 4.2 Budget Breakdown

.................................................................................................................... 35

iv | P a g e LIST OF ACRONYMS AND ABBREVIATIONS AF - Access to finance ANOVA

- Analysis of variance CS - Capital structure EPS - Earnings per share FDI - Foreign direct

investment GDP - Gross domestic product GP - Gross profit KMO - Kaiser-Meyer-Olkin

NIM - Net Interest Margin MFI - Micro Finance Institutions MM - Modigliani and Miller MSE

- Micro and Small Enterprises NGO - Non-governmental Organization NP - Net profit PE -

Price Earnings Ratio ROA - Return on assets ROC - Return on Capital ROE - Return on

equity ROI - Return on investment ROS - Return on Sales SME - Small and Medium

Enterprises SPSS - Statistical Package for Social Scientists UK - United Kingdom

v | P a g e List of tables List of Figure

1 | P a g e CHAPTER ONE INTRODUCTION 1.1.Background of the study Performance is

used as a measure to dictate organizational growth and development. The performance of

an organization shows the level of improvement made by a firm within a period of time that

is, firm performance serves as a barometer that measures the success of the company,

hence used as a bench mark for investors to invest their funds (Kariith, 2017).

Performance is a complex phenomenon and this has consequently increased the studying

of firm performance and its determinants globally. It 15 is the objective of every profit-

oriented organization to attain financial performance, which is seen as the metric for

assessing the effectiveness of management. Kariithi (2017) posit that the ability of the

organization to align the people and resources to tasks that are strategic for attaining

organizational performance, in moral and ethical ways that ultimately leads to sustainable

competitive advantage. In 23 measuring organizational performance, managers use

financial performance and non-financial performance to assess their ability and that of the

whole organization in moving the business towards financial performance. Both

measurements have been confirmed as significant in illustrating companies’ wellbeing

(Okelo, 2015) Therefore, the focus of this study is on financial performance aspects with

strong emphasis on the factors that are directly related to survey data and financial reports

of the organization. Taking into consideration that measuring firm performance is rather

challenging, and there is no consensus among scholars and business practitioners on the

metrics to be used in tracking 23 the efficiency and effectiveness of individuals towards the

organizational goals. In this study, return on assets and return on equity are relied upon to

assess financial performance with the link to organizational factors. 88 Furthermore, links

between organizational factors of access to finance, capital structure, and cost of capital,

firm size, liquidity, and financial performance of firms are conceptualized. It is important to

understand how capital structure influences financial performance of manufacturing firms.

Capital structure influences both profitability and riskiness of the firm. The greater the

gearing a firm exhibit, the higher the potential for failure if cash flows fall short of those

necessary to service debts (Okelo, 2015). Capital structure decisions attracts numerous

2 6 | P a g e interests in corporate finance from many scholars and researchers, mainly

to prove or disapprove the earlier theoretical backgrounds such as the pecking order,

Modigliani and Miller propositions and the static trade-off theories and their relationship

with firms’ performance. Pouraghajan & Malekian (2013) argues that there is a strong

negative and significant relationship between debt ratio and performance of firms, that is,

companies that have a high debt ratio will have a negative impact on firm performance and

value. Okiro (2014) in a study of corporate governance, 12 capital structure and

performance of firms listed at the East African community securities exchange found a

significant relationship between capital structure and financial performance. Ahmad (2012)

documents that firms that are profitable and therefore generate high earnings are expected

to use less debt capital than those who do generate low earnings. Financial 52 access is

an important determinant of the performance of enterprises as it provides them working

capital, fosters greater firm innovation and dynamism, enhances entrepreneurship,

promotes more efficient asset allocation and enhances the firm’s ability to exploit growth

opportunities (Njeru, 2012). Firms with access to funding are able to build up inventories to

avoid stocking out during crises, while the availability of credit increases the growth

potential of the surviving firms during periods of macroeconomic instability (Atieno, 2014).

Access to external resources allows for flexibility in resource allocation and reduces the

impact of cash flow problems on firm activity. Bunyasi, Namusonge and Bwisa (2014),

argues that the government should build capacity of the financial institutions to enhance

firm’s access to finances. Manufacturing is a challenging undertaking that requires a lot of

financial resources for acquisition of raw materials, investment in technology and

distribution thus the inability of manufacturing firms to access finance would greatly

exacerbate their current quality and market expansion problems thereby negatively

affecting their competitiveness and that of the country (Rotich, 2016). Javed and Akhta

(2012) postulates that access to 46 finance is a key determinant of a firms’ ability to

develop, operate and attain profitability. Lack of access to land, utility, installation and

import procedures act as constraints to manufacturing firm’s growth and profitability. Other

constraints such as poor financial management skills and lack of required collateral make it

difficult for the firms to access finance (Ayallo, 2012).

6 3 | P a g e Cost of capital is primarily a risk measure, but it is also related to firm value

and can be considered a key determinant of firm’s value other than accounting

performance measures. Value is created when the firm is able to enjoy a cheaper source

of capital. Given a rate of interest or cost of capital, an investor would choose a project

whose internal rate of return exceeded the cost of capital. In addition, 59 the cost of capital

is very important for a firm in order to assess future investment opportunities and to

reevaluate existing investments (Okiro, 2014). 81 The cost of equity for a firm is affected

by several factors, some of which are related to characteristics of the firm itself, while

others stem from the macroeconomic environment in which it operates. A study by Ahmad

(2012), found that greater firm size and greater liquidity of a firm’s stock are associated
with a lower cost of capital. 100 The size of the firm is the primary factor in determining its

profitability. the traditional neo classical concept of economics of scale indicate that item or

product can be produced at much lower costs by bigger firms (Niresh and Velnampy,

2014).big firm have more competitive power when compared to small firm in fields

requiring competition (dogan, 2013). Firm of different size distinguish the selves along

different observable and unobservable dimension. In addition to this big firm are able seize

the opportunity to work in the field which require high capital sience they have large

resource, and this situation provides them the opportunity to work in more profitable field

with little competition (Bayyurt,2007). Firm size is a construct of scholarly interest since it

traditionally has much explanatory power and an understanding of its importance can be

vital for managers who operate in today’s competitive environment (kioko, 2010). One 24

of the most common definitions of term “liquidity” is based on the ability of company to pay

its bills on time (Van Horne & Wachowicz, 2000). In every company

relation between liquidity and financial condition is very important. Stronger financial

27 conditions will be implicated by greater liquidity (Van Horne & Wachowicz,

2000). Liquidity is very important for continues of company’s everyday operations. This is

affected by quantity of current assets. Current assets can influence liquidity on two ways.

One of the possibilities is that there are fewer current assets in one company and that will

result in problems with operations. Other possibility is that there is too much current assets

in the company. If this is the case problem is reflected in return on investments (Van Horne

& Wachowicz, 2000). Cash flow is also very

6 4 | P a g e important for continuous of liquidity ratios. If there is problem with process

of collecting the receivables from customers then it will result in inability

to pay further obligations. This problem in the cash flow importantly affects inadequate

liquidity. Company liquidity in general is not reliant on the value of its

assets; rather it is depended on operating cash flows (Soenen, 1993). Cash flow is not

important only for company performances it reflect also satisfaction of customers.

Identifying drivers of company’s future cash flow is very important for shareholders (Gruca

& Rego, 2005). In relation to this it can be conclude that cash flow is important

not just for financial but also for non-financial performances. Liquidity in the term of

effectiveness is in the function of cash flow and its possibility

to generate into and invest out of firm in same certain period of time. When it is about

generating cash the same is if it is about retail or engineering company (Fadel &

Parkinson, 1978). Liquidity is short term indicator which shows company’s possibility of a

settlement. Liquidity depends on degree to which some asset can be converted to cash.

This money then can be used for paying current

obligations. Important for the concept of liquidity is that large quantity of assets or

commodities can be trade without changing its price (Pastor & Stambaugh,

2003). One of liquidity measures is based on comparing current assets with current

liabilities. This racio have been developed in the nineteenth century. It is believed that the

ideal proportion between those measures should be three (Sorter & Becker, 1964).

Those authors (Sorter & Becker, 1964) have also developed psychological model in

constrain with financial ratios and made conclusion that conservative corporations are

oriented on higher liquidity ratio. From one year to another, there could be increasing of

liquidity ratio in one company. (Fadel & Parkinson, 1978) emphasize that cause of the

liquidity ratio increasing must be considered. Only in case if it is naturally caused it can be

used for comparing one company with another. If market conditions are changing in

dramatically way, it will influence liquidity of company. For example the company that is

analysed had a very big problem few years ago. The problem was about main supplier

of company (about 90% of total supplies), who stop further produce of elementary

material. 1.1.1. Global Perspective of Determinants and Financial Performance

5 6 | P a g e The term manufacturing refers to the processing of raw materials or parts

into finished goods through the use of tools, human labor, machinery, and chemical

processing (Will Kenton, 2022). The manufacturing industries sector is one of the most
important economic sectors, because of its role and high impact in the development of the

economy at the local and global level. Global manufacturing production increased by 9.4

per cent in 2021, after the pandemicrelated drop of 4.2 per cent in 2020 in large developing

economies. The manufacturing sector in the developed nations is large and contributes

significantly to economic development, innovation and productivity. The sector cannot be

ignored in the process of economic development in any state as it remains one of the most

powerful engines for economic growth (Khalifa & Shafii, 2013). (Sankaran, 2021) The

estimated statistical evidence illustrates that a 1% increase in import increases the export

by 0.96%. The development of global value chains has facilitated the rapid integration of

emerging into the global economy. (M. West and Lansang, 2018) the top ranked nations in

overall manufacturing environment were the United Kingdom and Switzerland (both with 78

points out of 100), followed by the United States (77 points), Japan (74 points), and

Canada (74 points). Fuentes and Ferreira (2017) carried out a study on the effect of capital

intensity and foreign direct investment (FDI) on multinational manufacturing firm’s financial

performance. They found a positive effect between capital intensity and financial

performance of multinational manufacturing firms. Manufacturing sector acts as a catalyst

to transform the economic structure of countries from simple, slow growing and low value

activities to more vibrant and productive economies (Kungu, 2015). In 2009, manufacturing

was the third largest sector in the UK economy, after business services and the

wholesale/retail sector in terms of share of UK Gross Domestic Product. It generated some

£140bn in gross value added, representing just over 11% of the UK economy. It also

employed some 2.6 million people, representing over 8% of total UK employment.

1.1.2. Regional Perspective of Determinants and Financial Performance The share of

manufacturing value added in Growth Domestic Product (GDP) declined from 16% in 1980

to less than 10% in 2016 in Africa. Gross domestic product (GDP) growth is projected to

gather pace, increasing from 1.3 percent in. 2017 to 1.4 percent in 2018, 1.8 percent

6 6 | P a g e in 2019, and 1.9. As nations achieve higher levels of economic growth,

manufacturing sector seems to contribute more to the GDP, employment levels, innovation

and trade (Kungu, 2015). The manufacturing sector plays a big role in national income of

African countries. The sector contributes to the progress of the African economies,

increased rate of economic growth, diversified production, reduced imports, and expanded

the economic infrastructure (Rotich & Namusonge, 2016). The share of the manufacturing

sector in total employment and per capita manufacturing value added are rough indicators

of industry’s contributions in the social, economic and environmental dimensions of African

countries. The economic role of industry in sustainable development presents per capital

manufacturing value added as a general indicator of industrial development in the

economic perspective. One important contribution of industry to the social component in

sustainable development is creation of employment (Rissa, 2014). 1.1.3 Local Perspective

of Determinants and Financial Performance In Manufacturing firms have become an

important contributor to the economy. The sector contributes to the national objective of

creating employment opportunities and generating income for the economy (Njoroge,

2014). As an important sector in the overall economic growth, manufacturing sector

requires an in depth analysis at industry as well as firm level. This sector occupies an

increasing importance in the development plans in developing countries which seeks to

break the cycle industrial underdevelopment have in order to achieve economic

development. Manufacturing sector today has become the main means for developing

countries to benefit from globalization and bridge the income gap with the industrialized

world (Amakom, 2015). The 16 financial performance measures have a variety of users

but they are assumed to be of primary interest to shareholders as they entrust their money

to company managers who are responsible for the application of capital but may have no

incentives to increase shareholders value (Njeru, 2015). Additionally, agency theory argues

that unless managers are monitored constantly they act in self-interest, which might be at

variance with interests of shareholders. 17 But this variance can be reduced through the

added costs of monitoring or designing appropriate incentive structures. In order to achieve

goal congruence, managers’ compensation is often

7 | P a g e linked with the performance of the responsibility centers and also with overall

company performance (Uzel, 2015). Moreover, for the case of wolaita zone it is valid to

note that members want to earn a dividend and how much dividends manufacturing firms

can pay is a function of how well assets have been deployed to generate revenue, and

how well cost elements have been managed. Further, applying the profit maximization

approach to modeling financial performance would not negate the principal of maximizing

member’s profitability benefit (Rotich, 2016). Since in this study the objective is to identify

the determinants of financial performance of manufacturing in wolaita zone, two issues

have to be addressed. These are 74 how to measure financial performance and then how

to attribute financial performance to variables posited to be the determinants of

performance. Traditionally, analysis of financial statements using ratio analysis is the most

common method employed in measuring financial performance of business entities. For

instance, Okelo (2015) notes that 102 return on equity (ROE) ratio is one of the most

important relationship in financial analysis. Additionally Ogindo (2015), observes that

profitability indicators such as return on equity (ROE) and return on assets (ROA) tend to

summarize performance in all areas of the company. If portfolio quality is poor or efficiency

is low, this will tend to be reflected in these ratios. Gupta, (2012) uses both ROE and ROA

to measure profitability. Kiaritha, (2014) argues that regression analysis is the most

common methodology of relating the measures of financial performance to variables

posited to be 18 the determinants of financial performance. Other common multivariate

tools used to establish relationship between performance and firms or environmental

variables include descriptive statistics (includes tables of means, t-tests, tests of

proportions, chi-square), correlation, analysis of variance and other multivariate methods

(discriminant, cluster and factor analysis, canonical correlation). Investors measure overall

company performance in order to be able to make right investment decisions. The financial

performance measures are 17 assumed to be of primary interest to shareholders as they

entrust their money to managers who are responsible for the application of capital but may
have no incentives to increase shareholders value (Ongore & Kusa). Okelo (2015)

observes that the goal of 15 management should be to maximize the market value of the

company’s shareholder equity through investments in an

8 | P a g e environment where outcomes are uncertain. A proper balance between risk

and return should be maintained to maximize the value of a firm’s shares (Njoroge, 2010).

1.2.Statement of the Problem In Wolaita zone, manufacturing sector is the second most

important sector next to agriculture. It is important in terms of contribution to gross

domestic product and employment. The rapid growth of the manufacturing sector in most

developing countries like Ethiopia has a number of implications for activities in this sector

to implement reforms necessary to strengthen such sectors (Rotich & Namusonge 2016).

Such improvements may include steps such as privatization, trade development, regulatory

and competitive framework reviews and industrial productivity and tax reforms. The

manufacturing sector in wolaita zone is large with compare to other sectors and contributes

significantly to economic development, innovation and productivity. There is need to

understand 18 the determinants of financial performance of manufacturing firms. High

performance reflects management effectiveness and efficiency in making use of

company’s resources and this in turn contributes to the country’s economy at large

(Kung’u, 2015). Kiaritha (2016) found a positive relationship between financial performance

and access to finance. Bunyasi, Namusonge and Bwisa (2014), argued that access to

entrepreneurial finance has a positive influence on the performance of SMEs. Kinyanjui

(2015) found a 60 positive relationship between access to financial resources and firm

performance. Additionally Nanagaki and Namusonge (2014) argues that there is a positive

relationship between access to finance and performance of enterprises. Additionally,

Gupta, Srivasta and Sharma (2015) postulates that companies that have high profitability

and good performance have less debt. Ummar, Tanveer and Aslam (2014) in their study

on 20 the impact of capital structure on financial performance in Pakistan concluded that

capital structure choice is an important determinant of financial performance of firms.

Javed

9 | P a g e and Akhta (2016) found a positive relationship between capital sturacture,

financial performance, and growth. Okelo (2016) argues that capital structure affects

financial performance of firms. Earlier work on performance in wolaita zone only focused

on business performance of small and medium enterprises (Namusonge, 20). Mwangi

(2016) argues that equity financing was positively related to financial performance. Lack of

enough studies targeting financial performance in the manufacturing sector necessitated

the carrying out of this study. The study aimed at establishing factor determine of financial

performance of manufacturing firms in wolaita zone. Measures of firm performance would

be a combination of both financial and nonfinancial measures. Financial measures can be

represented by profit, revenue, returns on investment (ROI), returns on equity (ROE) and

earnings per share (EPS) (Omar, 2017). They have the advantage of being objective,

simple and easy to understand. However, they have the drawback of being not easily

available and being historical, therefore offering only lagged information. They can also be

subject to manipulations and incompleteness (Ng’ang’a, 2017). Non-financial measures

include number of employees, revenue growth, revenue per employee, market share,

customers’ satisfaction, employees’ satisfaction. The non-financial measures have the

disadvantage of being subjective (Njeru, 2015). Owing to the limitations of the financial and

nonfinancial measures, the study employed a hybrid approach combining both financial

and non-financial measures of performance. 1.3. Research Objectives 1.3.1. General

Objective 89 The general objective of the study will be to identify factor that determine

financial performance of manufacturing firms in wolaita zone. 1.3.2 Specific Objectives To

determine the effect of access to finance on financial performance among manufacturing

firms in wolaita zone. To evaluate the effect of capital structure on financial performance

among manufacturing firms in wolaita zone.

10 | P a g e To analyses the effect of cost of capital on financial performance among

manufacturing firms in wolaita zone. To assess 22 the effect of firm size on financial

performance among manufacturing firms in wolaita zone. To analyze the effect of liquidity

on financial performance among manufacturing firms in wolaita zone. 1.4.Research

Hypotheses The researcher will be testing the following null hypothesis: H01: Access to

finance does not significantly affect financial performance among manufacturing firms in

wolaita zone. H02: Capital structure does not significantly affect financial performance

among manufacturing firms in wolaita zone. H03: Cost of capital does not significantly

affect financial performance among manufacturing firms in wolaita zone. H04: firm size

does not significantly affect financial performance among manufacturing firms in wolaita

zone. H05: liquidity does not significantly affect financial performance among

manufacturing firms in wolaita zone. 1.5. Significance of the Study The significance of this

study will be to identify factor determine financial performance among manufacturing firms

in wolaita zone. 1.5.1 Policy Makers The establishment of new structures of governance at

zonal level might be geared towards making policies that will have positive impact on

manufacturing firms in wolaita zone. Such contributions will help policy makers focus on

the areas that will bring support to those firms such as easy access to capital, choose of

capital structure, identifying cost of capital, firm size

11 61 | P a g e and liquidity. The findings will be supportive in structuring appropriate

manufacturing strategies and formulate policies to improve the manufacturing sector. 1.5.2

Investors Other stakeholders such as the government would be interested in supporting

manufacturing firms as way of eradicating poverty in the country and stimulating economic

development. 90 The findings of this study will contribute towards a better understanding

of financial performance in manufacturing sector firms in wolaita zone. The government will

identify key variables that influence financial performance to facilitate and strengthen the

manufacturing sector to meet the challenges of the new millennium. 1.5.3 Researchers

Literature from this study will also be of benefit to the researchers who would want to

understand determinants of financial performance for manufacturing firms in wolaita zone.

The findings and recommendations from the study will benefit researchers and guide them

into further areas of research. The study will be adding to the existing body of knowledge in

the area of financial performance in general. It will be contributed to the academic literature

in the manufacturing sector in wolita zone. 1.6. Scope of the Study The study will be focus

on factor that determine financial performance such as 15 capital structure, cost of capital,

firm size, liquidity and access to finance and their effect on manufacturing enterprise. The

geographical scope included manufacturing enterprise in wolaita zone. The

nonmanufacturing firms were excluded from the study. Small and some medium

enterprises were also excluded from the study as most of them have stagnated growth and

were not appropriate for 12 the purpose of this study. This study will be focused on

determinants of financial performance of manufacturing firms in wolaita zone. Therefore,

the study will be a good representation of the manufacturing sector. The study will be

limited to manufacturing firms that have five year consecutive financial statement because

of financial statement is an

12 6 | P a g e important thing to analyze company financial performance, in case of this

scope of this study only include medium manufacturing enterprise that have life of five year

with in a medium rank. Manufacturing firms are drawn from many categories thus providing

a diversified population relevant for comparative analysis. 1.7. Limitations of the study The

researcher will be facing several limitations as some respondents were reluctant to provide

the information due to fears that the information, they provided could be used against them

or bear some adverse effects on the manufacturing firms and therefore they did not wish to

participate in the study. This limitation will be overcome by the introductory letter from the

University reassuring them that the information was strictly for academic purpose and

would be treated with confidentiality. Other limitation face by researcher will be covering of

all manufacturing firm that operate in wolaita zone due to some manufacturing firm are

micro, small, and medium that have not financial statements.

13 6 | P a g e CHAPTER TWO 2. LITERATURE REVIEW 2.1. Introduction This section

reviewed a detailed account of the various literature in financial performance. The chapter

reviewed the theoretical framework for determinants of financial performance which include

access to finance, 28 capital structure, and cost of capita, firm size and liquidity and

empirical literature. These independent variables were linked to the dependent variable

through a conceptual framework. Research gaps were identified. 2.2. Theoretical

Framework Theoretical literature provides several motivations for their well-documented

evidence. Theories on financial performance of firms and on factors influencing financial

performance were reviewed. The theories that were used in the study include capital

structure theory, tradeoff 22 theory and pecking order theory. 2.2.1. Modigliani-Miller

Theory Modern capital structure theory is based on the Modigliani-Miller hypothesis, which

was put forth by Franco Modigliani and Merton Miller in 1958. Numerous crucial aspects of

the capital structure decision are ignored. The theory identifies the financial choices made

by businesses that have no bearing on their worth. According to the theory, a company's

worth is unaffected by how it is financed in a perfect market. The outcome gives us a

starting point from which to study capital structure's relevance in the real world. With

perfect knowledge and no transaction or bankruptcy fees, Modigliani and Miller imagined

the ideal capital market. The theory made the following assumptions: there are no taxes,

borrowing costs are the same for businesses and individuals, and financing decisions have

no influence on investment choices. Modigliani and Miller made two findings under these

conditions. Their initial claim was that a company's worth 11 is independent of its capital

structure. According to their second claim, the price of equity for a leveraged company is

the same as the price of equity for an unleveraged company plus an additional premium for

financial risk. This means that as leverage rises, total risk is conserved and no additional

value is produced even though

14 6 | P a g e the cost of individual risks is distributed across various investor groups.

The impact 11 of taxes and risky debt was added to their analysis. Debt financing is
advantageous under a traditional tax system since interest payments are tax deductible,

which lowers the cost of capital as debt's share of the capital structure rises. Then, having

almost no equity at all would be the ideal structure. According to Modigliani and Miller's

second "irrelevance" proposition, given a company's investment strategy, the dividend

payout strategy it chooses to employ won't have an impact on either the stock's present

price or the total return to shareholders (Okelo, 2015). In other words, neither decisions

regarding the capital structure nor the dividend policy matter in a perfect market. Studies

have demonstrated that several indicators are used to gauge a company's financial

leverage and, consequently, its financial performance. The "irrelevance" theory of M&M

leverage is supported by a number of recorded studies, as noted by Kumar (2014) that

demonstrate a decline in share prices soon before the announcement of a new equity

issue and in the few years that follow. In reality, there are several complicated interactions

between the personal and corporate tax systems. According to Okelo (2015), 103 the tax

benefit of debt financing may be lessened if there are personal income taxes in place. 4

This is due to the fact that businesses may reduce their corporate taxes by increasing their

debt-to-equity ratio, but investors would have to pay more personal taxes and would

consequently need larger returns to make up for this tax and the associated increased

risks. As a result, the MM proposal was altered in 1977 to include personal taxes while

maintaining the same justification that capital structure does matter. A typical company

might potentially 91 double tax benefits by issuing debt up until the point at which the

marginal tax benefit starts to fall, according to Mwangi (2015). Consequently, it is

impossible for a company to have 100% of debt financing. In conclusion, MM shows that if

capital structure does matter, taxes and default risk may be the reasons why (Aroni,

2015). The core idea of MM is that any combination of funding sources is equally effective.

No matter how many financial resources are employed, the resulting capital structure is

only another method of distributing the net cash flow among the contributors of the capital

that supports the business' operations (Myers, 2001). Therefore, the MM theory is used in

this study since the capital structure a firm uses has an impact on its financial performance.
15 6 | P a g e 2.2.2 Trade-off Theory The Jensen and Meckling trade-off theory permits

bankruptcy costs to exist (Okelo, 2015). The theory examines the trade-off between the

expenses of bankruptcy and 11 the tax benefits of debt. It contends that businesses will

use debt as much as they can, but they must be cautious of any potential negative effects

of bankruptcy (Mwangi, 2015). . The tax advantages of debt are listed as a benefit,

whereas the disadvantages of debt financing are shown as bankruptcy charges and costs

associated with financial difficulty. When determining 11 how much debt and equity to

utilize for financing, a company that is maximizing its overall value will focus on this trade-

off because the marginal benefit of debt drops as debt increases while the marginal cost

increases (Migiro, 2013). According to Okelo (2015), paying down debt reduces managers'

cash flow options. On the other hand, he claims that this decline will lessen the chances of

successful investing. As a result, businesses with less debt have more investment

prospects and more liquidity than other companies engaged in the same industry. Potential

bankruptcy costs and agency fees related to bondholders' investment monitoring are

additional costs of debt. The necessity to balance the costs and advantages arises from

the fact that, in reality, businesses do not operate with a 100% debt financing due to

financial crisis, insolvency, and agency expenses. Furthermore, the theory predicts that the

tax rate and leverage will have a favorable impact on taxable income because of

permissible financial expenses, but it does not detail how this will happen (Mwangi,

2015). In this study, trade-off theory is used because the costs and advantages of

alternative financial sources are "traded off" until the marginal cost of equity equals the

marginal cost of debt, resulting in the ideal capital structure and maximizing firm value.

According to Mwangi (2015), Myers and Majluf further expanded the theory in 1984 after

Donaldson first proposed it in 1961. It contends that businesses prioritize internal financing

over all other types of external funding in their preferred hierarchy of financing options. This

is because internal funds do not require additional financial information disclosure or

flotation fees, which could result in a probable loss of competitive advantage on the

market. Thus, the wealth transfer from existing to new owners may result in harm to current

shareholders when new shares are issued. If internal sources (such as retained earnings)

are insufficient to finance new investments, management will go to external sources, such

as debt, as a backup. Equity

16 6 | P a g e comes last. In light of the fact that profitable businesses are able to finance

their investment possibilities with retained earnings, the pecking order hypothesis predicts

that these businesses will employ less debt in their capital structure than those that do not

generate high earnings. According to the Pecking Order theory, businesses order their

sources of funding 11 from internal financing to equity. Therefore, internal financing is

employed first, followed by the issuance of debt when it runs out, and the issuance of

equity when it becomes unnecessary to issue any more debt. According to the idea,

businesses follow a hierarchy of financing options and favor internal funding when it is

available. If external financing is needed, debt is favored above equity. However, the

theory presupposes that corporate managers would operate in the existing shareholders'

best interests and are better knowledgeable than outside investors about the company's

current profitability and potential for future growth (Sheikh Wang, 2013). Since managers

are not required to disclose information about the company's investment opportunities and

prospective returns on those investments to the public due to the usage of internal funds,

there is a strong motivation to keep such information confidential Managers may even

decide to abandon a project with a high rate of return if doing so would protect the interests

of the current shareholders (Mwangi, 2015). Would necessitate the issuance of fresh

shares as this would transfer a significant portion of the project's value to new investors.

Shares, according to Aroni (2015), is a less preferred method of capital raising since

investors perceive 11 managers are taking advantage of the firm's overvaluation when

they issue new equity. Investors will thus give the new equity offering a lesser value.

According to Okelo (2015), high tax rate businesses employ debt more frequently than low
tax rate businesses in order to benefit from tax breaks on interest payments. The form of

financing sources a corporation chooses can serve 11 as a signal of its ability to acquire

capital, hence the pecking order hypothesis is used in this study. Subsequently, financial

performance and finance. 2.2.4 Agency Theory In an agency relationship, one or more

people (the principals) hire another person (the agent) to carry out a task on their behalf

and give the agent some decision-making authority. According

17 6 | P a g e to Okelo (2015), an ideal capital structure can be achieved by lowering the

expenses brought on by disputes between managers, owners, and debt holders.

Therefore, a balance between different funding alternatives (own money or loans) that

enable the resolution of conflicts of interest between the capital suppliers (shareholders

and creditors) and management yields the ideal financial structure. The total of the

principal's monitoring costs, the agent's bonding expenses, and any residual losses is

referred to as agency costs. There will be an agency difficulty because of the disputes

between shareholders and debt holders or between shareholders and managers (agency

cost of equity). According to Ng'ang'a (2017), agency theory aims to identify and address

issues that arise in the interactions between shareholders and their professional agents.

The utilization of debt capital is a dependable strategy for regulating agency costs.

Because interest payments are required, leverage will make managers produce and

disburse funds. The amount of leftover cash flows will decline as a result of interest

payments. Therefore, debt might be seen as a clever tool to lower agency cost (Zurigat,

2014). The conflicting interests of managers and stockholders are the central theme of the

agency theory. According to Okiro (2014), managers optimize a utility function that includes

compensation, power, job security, and status whereas stockholders maximize money.

According to Mwirie (2015), using debt to ensure quick interest payments can be used to

influence managers' conduct by decreasing free cash flows within the company. Thus, less

money is spent the removal of managers who may misuse funds for personal gain or still

spend money on organizational inefficiencies at the expense of the company's goals. One
of the main goals is to increase shareholders' wealth through raising profitability, a key

indicator of financial performance. The ability to be indebted allows management and

shareholders to share the same goal of maximizing financial success and, ultimately,

shareholder wealth. For managers, the debt has the capacity to motivate them to succeed

since the more indebted the firm is, the higher the chance of bankruptcy and the risk of

losing their positions, pay, and other benefits. This is thought to be a sufficient threat to get

them to change their ineffective management practices and produce the most cash flow

possible. The removal of managers who may misuse funds for personal gain or still spend

money on organizational inefficiencies at the expense of the company's goals. One of the

main goals is to

18 6 | P a g e increase shareholders' wealth through raising profitability, a key indicator

of financial performance (Luigi & Sorin, 2014). The ability to be indebted allows

management and shareholders to share the same goal of maximizing financial success

and, ultimately, shareholder wealth. For managers, the debt has the capacity to motivate

them to succeed since the more indebted the firm is, the higher the chance of bankruptcy

and the risk of losing their positions, pay, and other benefits. This is thought to be a

sufficient threat to get them to change their ineffective management practices and produce

the most cash flow possible (Mwangi, 2015). Pay back the debt the level of debt that

allows for the lowest possible overall agency costs is the ideal level of debt. In order to

enhance financial performance, it is necessary to minimize costs brought on by disputes

between managers, owners, and debt holders. As a result, agency theory is used in this

study (Zurigat, 2014). 2.3 empirical literature Anitha Audax (2018) studied Factors

Affecting Financial Performance of Manufacturing Firms Listed in Nairobi Securities

Exchange Kenya. 5 The study employed longitudinal design to analyze the determinants

of financial performance in manufacturing firms listed in NSE Kenya. The target population

of the study was ten listed manufacturing firms in Kenya. The sample size in this study was

ten listed manufacturing firms. The study relied mainly on secondary data. Data were
obtained from audited financial reports. Data were analyzed using both descriptive,

correlation and regression analyses. 104 Statistical Package for Social Sciences was used

as tool for data analysis. Data was presented in the form of tables, graphs and pie charts.

The study established that there was a significant influence 13 of firm size on the financial

performance of manufacturing firms listed in NSE. The correlation analysis showed that an

increase in firm size led to a rise in financial performance of manufacturing firms listed in

NSE Kenya. 5 Correlation analysis also revealed that a unit increase in firm size

increased financial performance of listed manufacturing firms by thirty-seven percent. The

study also revealed that there was a significant influence of leverage on the financial

performance of firms listed in NSE. Correlation analysis also revealed that an increase in

leverage increased financial performance of manufacturing firms listed in NSE. Regression

analysis further revealed that a

19 | P a g e unit increase in leverage led to a rise in financial performance of listed

manufacturing firms by forty percent. Gladys Micere Wamiori (2017) this study was to

examine the determinants of financial performance of manufacturing firms in Kenya and

was guided by the following general objective: to establish the determinants of financial

performance of manufacturing firms in Kenya. The target population of the study being 741

manufacturing firms in Keya and a sample of 252 firms taken to be a representative of all

manufacturing firms in Kenya. In order to collect data from the sampled respondents,

cluster sampling was used to classify each of the twelve sub sectors into individual strata.

Simple random sampling procedure was then used to select the sample in order to ensure

each and every firm in the target population was represented. The study adopted a survey

design that was descriptive in collecting data. A structured questionnaire was distributed

targeting manufacturing firms in Kenya. The data analysis was done using Statistical

Package for Social Scientists (SPSS) version 24 to facilitate computation of descriptive

statistics, multiple regression and Pearson correlation to get answers to the study

questions. The key findings were that determinants of financial performance individually
had a 22 positive influence on the financial performance of manufacturing firms. The

overall results indicated 5 that there was a significant linear relationship between access

to finance and manufacturing firm’s financial performance. The results indicated a

moderately significant linear 28 relationship between capital structure and manufacturing

firm’s performance. There was a significant positive relationship between cost of capital,

tax incentives, investment practice and manufacturing firm’s financial

performance. Hayleslasie Tsegay Aregawi (2018) did study on Determinants of Leverage

and Its Impact on Firm Performance- Ethiopian Insurance Industry. 1 The study was

covered 10 years' secondary data audited financial statements (panel data) on 12 unlisted

insurance companies including one public insurance company covered a time span of

2006 to 2016, total observation of 120. In this study, we apply a multiple regression model

to examine determinates of financial leverage and firm performance using proxy of Return

on Asset (ROA). Fixed effect regression model found; Firm size and growth opportunity

have a positive relationship with the leverage of insurance industry while business risk

found a negative relationship with the leverage ratio of insurance

20 | P a g e companies. On the other hand, firm leverage and tangibility assets have

shown a negative and significant relationship with firm performance (ROA), whereas

growth opportunities and firm size have a positive and significant relationship with the

performance of the firm in terms of return on asset measurement. In general firm size and

growth opportunity has a significant and positive relationship with leverage and firm

performance of insurance company in Ethiopia. Fredrick Kangala Nakhaima 92016) the

purpose of this study was to determine factors that affect financial performance of small

and medium enterprises (SMEs) in Kenya. The research questions for this study were:

What was the effect of corporate governance, human resource capacity, access to finance

on financial performance in the SMEs in Kenya? A descriptive research design was

adopted for this study. 9 The target population of the study included the 4,560 SMEs in

Nairobi County. Stratified sampling technique was used to determine a sample size of 100
from the total population. For this study, data was collected using structured questionnaires

based on the research questions The findings of the study indicated that majority (81.6%)

of the respondents agreed that corporate governance affects financial performance.

Equally, the study findings revealed a positive relationship between corporate governance

and financial performance, (r= 0.491) p <0.05, majority (89.5%) of the respondents agreed

that HR department ensures that employees are conversant with new trends in technology

adopted in market and a strong positive relationship between human resource and

financial performance, r (0.414) p < 0.05, indicating the relationship was statistically

significant. statistically significant relationship to access to financing was important for

growth of SMEs Fazal Hussain et.al (2021) this paper examines the effect of cost of

capital on firm’s performance for the capital market of Pakistan using latest data and new

evidence. We use secondary data of 52 companies for the 11 years from 2010-2019. Firm

performance is proxies by Return on Assets (ROA), Return on Equity (ROE), while cost of

capital is proxies by 11 Weighted Average Cost of Capital (WACC). Results show that

firms in Pakistan rely on debt that generating internal sources of capital. 4 The results of

the study show that there is a significant negative association between cost of capital and

firm performance. Umair Khan Et.al (2020) did this study to explore and empirically

analyze the factors affecting the financial performance of Korean small- and medium-sized

manufacturing companies,

21 6 | P a g e which are relatively insufficiently researched, in terms of human resource

management (HRM). This study reviews previous research and discussions on the human

resource management system, as well as the organization and job-related attitudes and

financial performance of workers, for the formulation of two hypotheses. Among the HCCP

data, the hypothesis was verified through reliability and correlation analysis and stepwise

multiple regression analysis for small- and medium-sized manufacturing enterprises. 19

The results show, firstly, that human resource systems and systems have the same effect,

but there were differences in the degree of impact. Secondly, job satisfaction has a
statistically significant influence on financial performance. Lastly, all worker/employee

attitude determinants are statistically significant for both job satisfaction and organizational

commitment. EHIEDU, Victor Chukwunweike 13 (2014) the major indicators of the

financial performance of corporate entities are liquidity and profitability. The research

design adopted for this study is describtive research design and the quantitative research

design approach. The population consists of publicly quoted companies that make up the

“industrial/Domestic products” industry. The sampling technique adopted is the “non-

probability” sampling technique of four selected companies. The data used for the study

was secondary data 59 in the form of the “Annual Reports and Accounts” of the selected

companies. Simple 16 correlation analysis was used to test the hypothesis at 10% level of

significance. The overall findings of this study 22 indicate that: There is a significant

positive correlation between current ratio and profitability, (2) there is no definite significant

correlation between Acid-test ratio and profitability. (3) There is no significant positive

correlation between return on capital employed and profitability. The researcher

recommends that corporate entities should not pursue extreme liquidity policies at the

expense of their profitability, i.e. they should strike a balance between the two performance

indicators (Liquidity and profitability). Calistus Wekesa Waswa et al (2018) Given the

recurrences of liquidity management in sugar industry this study sought to investigate the

effect of liquidity management on firm performance using a sample of five sugar firms over

the period 30th June 10 2005 to 2016. We estimate a random effects regression model

where the results suggest that a negative relationship exists between liquidity management

on firm performance. Based on the study findings the following

22 | P a g e policy recommendations are proposed and if implemented will help resuscitate

the overall financial performance of factories in the sugar industry and hopefully reverse

their financial performance fortunes. The study recommends that careful consideration and

planning of funding liquidity management is one of the ways to financial performance and

as such this study recommends that there is need for the sugar industry firms to increase
their operating cash flow, to positively influence their financial performance. Kartal

Demirgüneş ((2016) did study to analyze 4 the effect of liquidity on financial performance

in terms of profitability) by using a time series data of Turkish retail industry (consisting of

Bora Istanbul (listed retail merchandising firms) in the period of 1998.Q1 2015.Q3. The

stationarity of series and the co integration relationship between them are tested by the

unit root test of Carrion Silvestre et al. (and the co integration test of Maki (respectively. Co

integration coefficients are estimated by Stock and Watson (dynamic OLS method. Finally,

causal relationships between the series are tested by Hacker and Hatemi (bootstrap

causality test. Results of Maki (test show that the series are co integrated in the long run.

While long run parameters estimated posit a significantly positive relationship between

financial performance and liquidity, causality test does not indicate any direction of

causality between the series. Meiryani et al. (2020) did study on the determinant 14 effect

of capital structure on firm’s financial performance that is conducted on 55 manufacturing

sector listed companies in Indonesia Stock Exchange. The data analysis is conducted

using R Studio software. Study is used data panel analysis with random effect model. The

result of this study are firm's size has no effect on firm's financial performance which is

proxies by return-on-assets and firm's size has no effect on firm's financial performance

which is proxies by market-to-book-value. Ashraf Mohammad Salem et al (2017). This

study examines the moderating effect of cost of capital on the relationship between

inventory types and firm performance. 8 The data of 48 firms for the period 2010–2016

which formed 279 firm-year observations were used in this study. With the use of Pearson

correlation and panel Generalized Method of Moments (GMM) estimation, the findings

show that inventory management with consideration of its types influence firm performance

in the long term. In addition, it is also found that cost of capital moderates the relationship

between inventory management and firm performance. However,

23 | P a g e the interaction between cost of capital and inventory types has different

implications. It is suggested that firms should consider cost of capital when making
decision on inventory types and align their inventory control to fit in to the changes in their

business environment. Lujing Li u (2021) did study 7 to analyze the determinants of

financial performance of agricultural listed companies in China. Multiple regression

approach is applied based on the sample of 39 agricultural listed companies during the six

year period (2013 - 2018). Financial performance is measured by return on sales (ROS),

return on assets (ROA), and return on equity (ROE). Internal factors include firm size,

current ratio, debt ratio, long term liability ratio, sales growth rate, capital intensity, research

and development (R&D) intensity, export intensity, and ownership, and external factors

include gross domestic product (GDP) growth rate and consumer price index (CPI) growth

rate. The results show that financial performance of China s agricultural listed companies is

positively related to firm size, long term liability ratio, and sales growth rate and negatively

related to debt ratio, capital intensity, and export intensity. In addition, external factors have

no significant impact on financial performance. Abdullahi Hamu Ginbite (2017) this

research aims to identify factors determining the financial performance of MSEs with a

special attention to manufacturing, service, construction and trade sectors in Asella Town.

3 Questionnaires are analyzed using statistical techniques such as descriptive and

inferential analyses. The information gleaned through the questionnaire from a sample of

134 operators and face-to-face interviews were conducted with 12 operators of MSEs and

2 respondents from officers; i.e. process owner and another from expert working at the

center of office of Asella Town Job Creation and Food Security. Furthermore the approach

that was followed in this particular study was quantitative and qualitative. The technique

applied was a standardized closed-ended questions and face-to-face interview. In addition,

the data those were collected and analyzed using a statistical package for social sciences

where tables were utilized for presentation of the results. The findings revealed that MSEs

lacked financial support, technological, customer relationship and marketing skills in order

for them to be competitive and well performed. The findings further revealed that the

government was not doing enough in terms of the financial performance of SMEs in Asella

town as most of the respondents were complaining about the stringency of the government
support and regulations

24 | P a g e pertaining to MSEs. Hence the government bodies and other stake holders

have to work in collaboration in order to solve problems of finance, working place,

marketing and government support. Priscilla Nyanchama Ombongi (2018) 1 Small and

Medium Enterprises (SMEs) do play a vital role in various economies across the world.

SMEs in Kenya not only have a share in Kenya’s Gross Domestic Product (GDP) but also

constitute a larger portion of Kenya’s employment openings. For longevity of SMEs in

Kenya, the financial aspect cannot be ignored. 21 Technology and human capital cannot

be ignored either since it is out of well-trained work force that Research and Development

(R&D) can be conducted in support of innovation related activities and outcomes which

largely support the technological aspect of a firm. The study applies Descriptive research

design whereby data collected was analyzed using regression analysis that confirmed

econometric least square model of the study. 21 The study has confirmed a direct

relationship between SMEs financial performance and the independent variables; bank

credit, technological costs, GDP, growth in number of SMEs and employee costs. The

study is highly recommended for use by stakeholders in SMEs and Government of Kenya

in efforts to ensure external financing is available to SMEs. 2.5 92 Conceptual Framework

A conceptual framework is a visual representation of the theorized relationships between

the study's variables. The conceptualization of variables in academic research is crucial

because it serves as the foundation for testing hypotheses and developing generalizations

from the study's results. In this study, the theorized drivers of financial performance served

as the independent variables. The study's independent factors included access to finance,

28 capital structure, and cost of capital, firm size and liquidity. The conceptual framework

demonstrates how factors such as access to finance, firm size, liquidity, capital structure,

and cost of capital all have an impact on the financial performance of manufacturing

companies. The fundamental justifications for the conceptual framework in figure 2.1 are

presented in the next section in order to particularly address the emerging research gaps.
25 6 |Page Independent

variable dependent variable

(Explanatory variable) (Explained

variable) ACCESS TO FINANCE CAPITAL STRUCTURE COST OF

CAPITAL FIRM SIZE LIQUIDITY FINANCIAL PERFORMANCE Figure 1.

26 | P a g e CHAPTER THREE RESEARCH METHODOLOGY 3.1 Introduction This

chapter discusses the methodological approach for the study, and it comprises of the

following: description of the study area, research design, target population, sampling

technique, sample size, types of data, method of data analysis and chapter summary 3.2

Description of the Study Area This study will be conduct in Wolaita zone. The 93 zone is

one of the zones in SNNPR, and it borders with Gamo Gofa zone in the South, With Dawro

Zone in the West, with Sidama region in the East, with Kamabata & Tamabro, and Hadiya

Zones in the North and with Oromia regional state in the Northern East. The total area of

the zone is 4,471.3 km² or 447130 hectares. The zone is classed into 16 woredas and 6

towns. Located about 300 kilometers (190 mi) south of Addis Ababa. 2 The vegetation

and climate of the large part of the region are conditioned by an overall elevation of

between 1,500 and 1,800 meters (5,900 ft) above the sea level. There are, however, five

mountains higher than 2,000 meters (6,600 ft), with Mount Damota at 3,000 meters at the

center. Through undulating hills there are no large forests except in the Soddo Zuriya, and

Omo river basin, which is below 1,500 meters (4,900 ft) and a malaria zone. In the local

view, there are only two regions: the highlands (Geziyaa) and the lowlands (Garaa). In the

highlands, there are streams and small rivers. Several thermal hot springs are situated

around Lake Abaya, with boiling and steaming water. The soil of the Wolayta is of heavy

red color which becomes brown and black during the rains and has the fragility and the

softness of sand. The dry period makes the soil hard as brick, making ploughing and

digging possible after the rains. The layer of soil is very deep—an average of 30
meters—in both the plains and the hills, as verified during the drilling of wells. The soil is

fertile and produce two crops per year when the rains are regular. Wolaita Zone is

composed of sixteen woredas and six city administrations. There are also different towns

and cities in the Wolaita zone. Sodo town is administrative and trading center it is located

at the center of roads to and seven entering gates.

27 6 | P a g e 3.2. Research design Research design represents the methods to be

adopted for collecting the data and the techniques to be used in their analysis. Kothari

(2012) states that 26 research design is the arrangement of the conditions for collection

and analysis of data in a manner that aims to combine relevance to the research purpose

with economy in procedure. The study will be adopted both cross-sectional research

design and descriptive survey design. Cross-sectional studies are designed to collect data

once over the same period of time, the data is analyzed then reported while descriptive

survey design is designed 16 to collect data from a sample with a view of analyzing them

statistically and generalizing the results to a population (Kihara, 2016). Using cross-

sectional design, the researcher will be able to obtain research data over the same period

of time. While descriptive research design will be use to establish the cause-and-effect

relationship between the dependent variable (Firm Performance) and the independent

variables. The methodology used in this study compared favorably with that of previous

empirical studies (Ng’ang’a 2017, Sasaka 2017). In all these studies, the quantitative

approach by use of surveys done by administration of questions will be the primary

methodology employed in studying financial performance. This study will be use similar

approach to enhance comparability of findings 3.3 target population A population is defined

as total collection of elements about which we wish to make some inferences (Kungu,

2015). Other scholars (Kilungu, 2015), define population as a large collection of subjects

from where a sample can be drawn. Kothari (2011) argues that a population is all items in

any field of inquiry which is also known as the universe. Sasaka (2016), asserts that a

target population is the group of individuals to whom the survey applies. It is the collection
of individuals about whom conclusions and inferences are made. Mugenda & Mugenda

(2012) term target population as that population to which a researcher wants to generalize

the results of his study. The study will be focus on manufacturing firms in wolaita zone. The

study’s target population will be 31 medium size manufacturing enterprise with five year

and more than five year experience in order to gain five year financial statement to see the

their performance. The respondents will be managers of manufacturing firms. The study

will

28 6 | P a g e be focus exclusively on the manufacturing firms that have five year and

greater experience. Those have less than five years with medium rank will be omitted. 3.4

Sampling Frame Ng’ang’a (2017) refer to a sampling frame as the technical name for the

list of the elements from which the sample is chosen from while Mugenda (2009) and

Kothari (2012) define the term sampling frame as a list that contains the names of all the

elements in a universe. The study will be restricted to medium manufacturing firms within

wolaita zone. The manufacturing firms were stratified into: furniture, metal works, agro

process, yegenbata gebeat and construction. 3.5 Sampling Technique Due to the small

size of the population, all medium manufacturing firms in wolaita zone will be take part in

the study as Bryman and Bell (2003) opine that when the target population is small, all the

elements in the population take part in the study. Thus, all the thirty-one firms will be takes

part in the study. In this regard, the study will be use census sampling technique. Due to

this all member of the population will be takes part in the study. 3.6 Sample 105 size Data

was collected from all the 31 medium manufacturing enterprise in wolaita zone. All the 31-

manufacturing enterprise will be taken part in this study due to the small number of the

target population since there were only 31 medium manufacturing firms in wolaita zone. 3.7

Types of data 76 Both primary and secondary data will be use in this study. 3.8 Data

Collection Methods Data collection methods in this study will be include both primary and

secondary data. Primary Data The primary data will be collected through a self-

administered semi-structured questionnaire. The questionnaire contained closed-ended

questions and a customized five-part Likert scale which will be use to collect data on the

variables from the departmental heads. Respondents will be asked to indicate agreement

with each item. Each item had a five-point scale ranging

29 6 | P a g e from1 = strongly disagree, 2 = disagree, 3 = indifferent, 4 = agree, and 5 =

strongly agree. A structured questionnaire is a list of questions to be answered by the

respondents. The questionnaire will be created with the purpose of understanding

manufacturing firm’s behavior and analysis of the interaction between independent and

dependent variables which served the research objective. The questionnaires will be

preferred because it had standard questions which could be administered to a large

number of respondents in Kenya within a short time and at a minimal cost. The

questionnaire will be divided into four main sections. The first section included the

demographic information of the respondents, while the second part covered respondent’s

characteristics including experience in manufacturing, proportion of investment in

manufacturing, and investment knowledge. The remaining sections covered the

independent variables factors. The extent to which each variable, among the five broad

categories, influences the 101 financial performance was measured using a response

scale of 5 for very high to 1 for very low. Secondary Data Secondary data will be acquired

through analysis of companies published accounts, from manufacturing firms’ offices and

from the registrar of companies. The data will be collected for span 75 a period of five

years covering 2010 to 2014. The reason to restrict 22 the period of the study to five years

is that the latest data will be readily available for this period. 3.7 Data Collection

Procedures The data will be collected by use of a questionnaire. The research instrument

will be conveyed to the respondents through the drop and pick technique. A covering letter

with each questionnaire explained 61 the objectives of the study and assured respondents’

confidentiality and urged them to participate in the study. The respondents will be

requested 94 on their willingness to participate in the survey and provide the data. The

questionnaire will be administered to individuals of diverse characteristics, spread across

various sectors in the economy, who have manufacturing firms in wolaita zone. The

questionnaire will be used to obtain primary data from the sampled

respondents. Secondary data will be collected from financial statements using a

secondary data collection sheet as. The purpose for collecting secondary data will be to

cross validate of the primary data will be collected. The data will be extracted from annual

reports of manufacturing firms for the

30 6 | P a g e period 2010 to 2014. Important figures from 83 statements of

comprehensive income and financial position were recorded to facilitate computation of

parameters of financial performance such as return on assets and profitability. To 82

supplement published annual financial statements, other important quarterly business

journals, manuals and in-house magazines will be used. 3.9 Data Analysis and

Presentation Data analysis refers to the application of reasoning to understand the data

that has been gathered with the aim of determining consistent patterns and summarizing

the relevant details revealed in the investigation (Kiaritha, 2015). To determine the patterns

revealed in the data collected regarding the selected variables, data analysis was guided

by the aims and objectives of the research and the measurement of the data collected. The

data collected was quantified and coded. The statistical analysis to be employed in the

study included descriptive statistics, correlation analysis and multiple regressions.

Qualitative Analysis Qualitative research was used to provide deep interpretation of the

research problem by exploring causal relationships among the variables selected in the

study. Semi-structured interview was used to collect data with an interviewer-administered

questionnaire. Qualitative data collected through interviews was first edited and response

rate calculated. Descriptive statistics such as mean, standard deviation and frequency

distribution 1 was used to analyze the data. Descriptive statistics were 75 used to

summarize the data generated by the survey in terms of the distribution of responses for

each variable and the relationships between variables. Such statistics measures 77 the

point about which items have a tendency to cluster and also describes the characteristics
of the data collected. Data was presented in form of tables (Kothari, 2012). Analysis of

Variance (ANOVA-F test) which determines the effect of independent variable on the

dependent variable was carried out based on which the set hypothesis was accepted or

rejected. The ANOVA test was chosen as the study presumes that the population being

tested was normally distributed, have equal variances and the samples were independent

of each other. The decision to accept or reject the research hypothesis was based on the

p-values. Quantitative Analysis

31 6 | P a g e Quantitative research was used to describe, explain and quantify

relationships between different variables. The aim of researcher will be 8 to study the

relationship between an independent variable and a dependent variable in the population.

The data analysis will be done using Statistical Package for Social Scientists (SPSS)

version 24 to facilitate computation of descriptive statistics, multiple regression and

Pearson correlation to get answers to the study questions. Normality tests preceded data

analysis. 38 Normality tests are used to determine if a data set is well-modeled by a

normal distribution (Rotich, 2016). There are various tests for assessing normality such as

skewness and kurtosis, Shapiro-Wilk, Kolmogorov-Smirnov (Monari, 2016). This study

used Shapiro-Wilk test to check the normality of the distribution because it 74 is a good

indicator of the normality of the data (Kiaritha, 2015)). Factor analysis was employed in

order to identify the constructs that would then be regressed against the dependent

variable (Uzel, 2015). Factor analysis was used to analyze groups of related variables to

reduce them into a small number of factors or components. Three main steps were

followed in conducting factor analysis namely; assessment of the suitability of the data;

factor extraction, and factor rotation and interpretation (Kilungu, 2015). To test the

hypothesis for this study, the independent variables will be regressed against financial

performance as the dependent variable. Multiple regression model will be used to model

the relationship between the dependent variable Y and independent variables X. 68 The

dependent variable, Y, is a discrete variable that represents a category, from a set of

mutually exclusive categories. Multiple regression measures the relationship between a

categorical dependent variable and one or more independent variables by using predicted

values of the dependent variable. The variable 16 financial performance is a measure of

the total contribution of all the independent variables used in the model. The probability of

a particular outcome is linked to the linear predictor function. In terms of expected values,

this model is expressed as follows: Y = βo + β1X1 + β2X2 + β3X3 + β4X4 + β5X5 + ε

Where: Y= Financial Performance of Manufacturing Firms

32 6 | P a g e  β0 = coefficient of the constant variable β1– β5 = Regression coefficients

to be estimated. X1 = Access to Finance. X2 = Capital Structure X3 = Cost of Capital X4 =

Firm size X5= liquidity Ε = Stochastic or disturbance term or error term. This model 84 is

based on the assumption that the disturbance terms are uncorrelated across firms,

meaning that financial performance change only as a reaction to a specific factor. A

positive regression coefficient means that the explanatory variable increases the probability

of the outcome, while a negative regression coefficient means that the variable decreases

the probability of that outcome, a large regression coefficient mean that the independent

variable strongly influences the probability of that outcome, while a near-zero regression

coefficient means that independent variable has little influence on the probability of that

outcome. The basic idea of multiple regression is to use the mechanism for linear

regression by modeling the linear combination of the explanatory variables and a set of

regression coefficients that are specific to the model at hand but the same for all trials.

33 6 |Page WORK PLAN AND BUDGET BREAKDOWN

34 | P a g e Table 1

35 | P a g e 4.2 Budget Breakdown Table 2. Budget S/N Item 95 Unit Quantity Unit
price Total price ETB 1 Research proposal Page 40 3 120 2 Mock document Page 75 3

225 3 Thesis document Page 85 3 255 4 Thesis binding Cover 3 900 2700 5 Binder /

Binding Pcs 9 20 180 6 Note book Pcs 4 100 400 7 Bag Pcs 1 900 900 8

Transportation Km 4 900 3200 9 Data collector training Data 10 400 4000 10 Mobile

card Pcs 50 50 2500 11 Flash driver (32 GB) Pcs 2 500 1000 12 Pen Pcs 10 20 100

12 Contingency 5% 779 Total cost Birr 16,359 REFERENCES Abbas, A. & Christensen,

J. (2007). 62 The role of domestic debt markets in economic growth: an empirical

investigation for low-income countries and emerging markets, Journal of Monetary

Economics 24(2), 171-188. Abor, J. (2005). 12 The effect of capital structure on

profitability: an empirical analysis of listed firms in Ghana. Journal of Risk Finance, 69(3),

438-47. Aburub, N. (2012). Capital structure and firm performance: evidence from

Palestine stock exchange. Journal of Money, Investment and Banking, 23(4), 109-117.

36 6 | P a g e Adelegan, O., & Ariyo, A. (2010). Capital market imperfections and

corporate investment behavior: a switching regression approach using panel data for

Nigerian manufacturing firms. Journal of Money, Investment and Banking, 2(6), 16-38.

Afza, T., & Hussain, A. 1 (2012). Determinants of capital structure across selected

manufacturing sectors of Pakistan. International Journal of Humanities and Social Science,

1(12), 254-262. Ahmad, Z. (2012). Capital structure effect on firm performance: focus on

consumers and industrial sectors on Malaysian Firms. International Review of Business

Research Papers, 8(6), 137-155. Akhabonje, S., & Namusonge, G. S. (2016). Factors

influencing access to 96 credit by micro and small enterprises: International Journal of

Social sciences and Humanities Inventions 3 (10), 2904-17. Ai, K., Akhtar, M., & Sadaqat,

S. (2011). Practical implication of capital structure theory empirical evidence from the

commercial banks in Pakistan. European Journal of Social Sciences 23(12), 165-173.

Allen, F., Isaac O., & Lemma, S. 97 (2011). African financial systems: A review of

Development Finance 1(6), 79 – 113. Amakom, U. (2012). “Manufactured exports in sub-

Saharan African economies: econometric tests for the learning by exporting hypothesis”.
American International Journal of Contemporary Research, 2(4), 195 – 206. Amidu M.

(2007). Determinants of capital structure of banks in Ghana: An Empirical Approach,

Journal of Management, 2(1), 67-69. Asimakopoulos, I., & A. Samitas, T. (2009), “Firm-

specific and Economy Wide Determinants of Firm Profitability: Greek Evidence using Panel

Data”, Managerial Finance, 35(11), 930-939. Attar, A. (2014). Corporate strategy and

capital structure: an empirical study of listed manufacturing firms in Saudi Arabia. PhD

Thesis Brunel University. Atieno, R. (2014). Linkages, access to finance and performance

of small scale enterprises in Kenya. 18 International Journal of Economics and Finance,

52(3), 160 – 178. Ayallo, R. (2014). Determinants of access to microfinance services

among self-employed persons with disabilities in Nairobi Kenya. MBA Thesis, University of

Nairobi. Baker, T. L. (1994). Doing social science research (2nd ed). McGraw-Hill Inc. New

York.

37 6 | P a g e Bank for international settlement (2014). Manufacturing in UK: An

Economic Analysis of the Sector. London: Department of business innovation and skills.

Barney, J. (1991a). Firm resource 39 and sustained competitive advantage. Journal of

Management 17(1), 99 Barney, J. (1999b). Firm resources and sustained competitive

advantage. Journal of Management 17(1), 99 Barney, J. (1991a). Firm resource and

sustained competitive advantage. London. Journal of Management vol. 17(1), 99 Barney,

J.B. (2001). Resource based 4 theories of competitive advantage: A ten year

retrospective on resource based on view, London. Journal of Management 27(6): 642-643

Beccalli, E. (2010). 85 Does IT investment improve bank performance? Evidence for

Europe Journal of Banking & Finance 31(3), 2205-306 Beck, T., Demirguc-Knut, A.,

Levine R., & Cihak M. (2013). Financial Development and Structure Database. Journal of

International Money & Finance, 13(6), 100- 116. Beck, T., Demirguc-Knut, A., Laeven L., &

Maksimovic, V. (2010). The determinants of financing Obstacles. World Bank Economic

Review, 14(5), 597-605. Becker, G.S (2003). 33 Human capital: a theoretical and empirical

analysis with special references to education (3rd ed.), Chicago, University of Chicago
Press. Berk, J., DeMarzo, P. & Harford, J (2013), Fundamentals of Corporate Finance, 2.

Ed. edn, Prentice Hall, Boston, Mass. Bigsten, A., Mulenga, S., & Olsson, O. (2010). The

political economy mining in Zambia. Mimeo, Washington DC: World Bank. Borgia, D., &

Yan, N. (2013). The impact of institutional factors on 12 capital structure: evidence from

Chinese private listed firms. 18 International Journal of Economics and Finance, 45(4),

191-215. Botha, M., & Van. V. (2009). Retail credit capital charge optimization and the new

Basel Accord. Risk Management in Financial Institutions, 2(2), 45-68.

38 | P a g e Bougheas. S., Mizen. P., & Yalcin. C. (2010). Access to external finance.

Theory and evidence on the impact of monetary policy and firm specific characteristics.

Journal of Banking and Finance, 30(1), 199227 Brigham, E., & Tzioums, K. (2015).

Financial management: Theory and practice. New York. SouthWestern College. Bunyasi,

G., Namusonge, G. & Bwisa, H. (2014), Effect of entrepreneurial finance on the growth of

small and medium enterprises in Kenya. European Journal of Business and Management

31(6), 22222839. Capon, N., Farley, J., & Hoenig, S. (2012). 98 Determinants of financial

performance: A Meta-Analysis. Journal of Management Science, 36(10), 20-126. Cheng,

B., Ioannou, I., & Serafein, G. (2014). Corporate social responsibility and Access to

finance. Strategic Management Journal, 39(7), 78-89. Chisti, K. A., Ali, K., & Sangmi, M. I.

D. (2013). Impact of capital structure on profitability of listed companies (Evidence from

India). The USV Annals of Economics and Public Administration, 13(17), 183-191.

Claessens, S., & Tzioums, K. (2006). Access to finance: Building inclusive financial

system. New York. The free press. Coasta, V. (2012). 4 Determinants of corporate

financial performance, Journal of International Money & Finance, 15(6): 120-136. 78

Cronbach, L. J. (1951). Coefficient alpha and the internal structure tests. Psychometric,

16(2), 29-334. De Young, R., Evanoff, D., & Molyneux, P., (2014). Mergers and

acquisitions of financial institutions: A review of the post-2000 literature. Journal of

Financial Service 36(4), 87-110. Ebimobowei, A. (2013). Capital structure and the

operating performance of the Nigerian stock exchange. 20 Research Journal of Finance

and Accounting, 4(5), 2222-2847. Egbide, B. Uwuigbe, O., & Uwalomwa, U. (2013). 47

Liquidity Management and Profitability of Manufacturing Companies in Nigeria. IOSR

Journal of Business and Management, 9 (1), 13-21

39 | P a g e Ehiedu, V. 4 C. (2014). The Impact of Liquidity on Profitability of Some

Selected Companies: The Financial Statement Analysis (FSA) Approach. Research

Journal of Finance and Accounting, 5(5), 8190 Fama, F., & French K. 1 (2002). Testing

trade-off and pecking order predictions about dividends and debt. The Review of Financial

Studies, 15(1), 1-33. Fuentes, P. Ferreira, G., Kennedy, P., & Perez, F. (2017) Economic

performance of U.S. multinational manufacturing firms: The linkages between foreign direct

investment and firm strategy. International business research 10 (1), 9004-9012. Frame,

W., Aruna S., & Lynn, W. (2001). The effect of credit scoring on small business lending. 99

Journal of Money, Credit, and Banking, 33(3), 813-825. Gang, F., Weilan, F., & Dan, L.

(2012). Empirical study on financial risk factors: Capital structure, operation ability,

profitability and solvency-evidence from listed companies in China. 25 Journal of Business

Management and Economics, 13(6), 296-342. Garson, D. G. (2012). Testing Statistical

Assumptions. Asheboro: Statistical associates publishing blue book series. Ghauri, N., &

Gronhaug, K. (2002). Research Methods in Business Studies. A Practical Guide Harlow:

Financial Times Prentice Hall. Firms, International Journal of Behavior and Research, 4(1),

18-27 Gleason, K., Mathur, L., & Mathur, I. (2000). The interrelationship between cultures,

63 capital Structure, and performance: Evidence from European retailers. Journal of

Business Research, 50(5), 185-91. Githae, P. (2012). 53 The effect of technology adoption

on performance of youth led micro and small enterprises. PhD Thesis, Jomo Kenyatta

University of Agriculture and Technology. Githaiga, I, M. (2019). The 64 effect of strategic

management practices on implementation of quality management systems for staff

corporations in Kenya. PhD Thesis, Jomo Kenyatta University of Agriculture and

Technology. Gitari, N. (2014) study 31 on the relationship between capital structure and

financial performance of the manufacturing companies listed on the Nairobi stock

Exchange: MBA project, United States international university – Africa.

40 | P a g e Gonzalez, R., Lopez, J., & Saurina, J. (2013). Determinants 46 of access to

external finance: Evidence from Spanish firms. International Research Journal of Finance

and Economics, 42(4), 56-75. Gupta, P., & Srivastava, A. & Sharma, D (2013). 12 Capital

structure and financial performance: Evidence from India. Greater Noida. Gautama Buddha

University press. Hanning, A., & Jansen, S., (2013). “Financial Inclusion and Financial

Stability: Current Policy Issues” International Finance Review, 8(12), 30-32. Harris, M., &

Raviv, A. (1988). Corporate control contests and 1 capital structure, Journal of Financial

Economics, 20(7), 55-86. Huang, G., & Song M. (2002). The Determinants of Capital

Structure: Evidence from China HIEBS (Hong Kong Institute of Economics and Business

Strategy) Working Paper. Available at SSRN: http//ssrn.com/abstract=320088 Huang, G.,

& Song, M. (2005). 12 The determinants of capital structure: Evidence from China. China

Economic Review, 22(6), 81-98. Javed, B., & Akhta, S. (2012). Interrelationship 34

between capital structure and financial performance, firm size and growth: Comparison of

industrial structure in KSE. European Journal of Business and Management, 4(15),

148-157. Jensen, M. 40 (1986). Agency costs of free cash flow, corporate finance and

takeovers, American Economic Review, 76(2), 323-329. Kariithi, J., & Kihara, A. (2017).

Factors Affecting Performance of Manufacturing Firms in Kenya: A Case of Pharmaceutical

Firms in Nairobi County. Strategic Journals (2), 817 – 836. Kalunda, E. (2013). 69

Financial Inclusion Impact on Small-Scale Tea Farmers in Nyeri County, Kenya

International Research Journal of Finance and Economics, 39(3), 76-105. Kaumbuthu, A.

J. (2011). The effect of 35 capital structure and financial performance: a study of firms

listed under industrial and allied sector at the NSE, MBA Dissertation, and Nairobi:

University of Nairobi. Khalid, K., Hilman, H., & Kumar, D. (2012) Getting along with

quantitative research process. International Journal of research in Management 2(2),

15-30.
41 6 | P a g e Khalifa, M., & Shafii, Z. (2013). Financial performance and identify factors

in this performance of nonoil manufacturing companies in the Libyan stock market. 25

European Journal of Business and Management, 5(12), 83-99. Kiaritha, W. (2015).

Determinants 48 of the financial performance of savings and credit co-operatives in the

banking sector in Kenya, PhD thesis, Jomo Kenyatta University of Agriculture and

Technology. Kothari, C. (2011). Research Methodology Methods and Techniques. New

Delhi: Age International Publishers. Kubai, F. (2015). The effect of capital structure on the

financial performance of manufacturing firms in Kenya, MBA Project, University of Nairobi.

Kyereboah-Coleman, A. (2007). 7 The impact of capital structure on the performance of

microfinance Institutions. Journal of Risk Finance, 8(6), 56-71. Liargovas, P., & Skandalis,

k, (2008). Factors affecting firms’ financial performance: The case of Greece. European

Journal of Business Management, 3(10), 80-98. Liang, Q., Haiyang. L., & Wang, Z (2015).

Social capital, member of participation, and cooperative performance: Evidence from

China’s Zhejiang. International Foodand Agribusiness Management Review, 18(I), 29-55.

Lee, J. (2013), “Does Size Matter in Firm Performance? Evidence from US Public Firms”,

4 International Journal of the Economics of Business, 16 (2): 189-203. Lussier, R. N.

(1995). A nonfinancial business success versus failure prediction model for young firms.

Journal of Small Business Management, 39(3), 228-39. Lyria, R., Namusonge, G. S.,

Kabare, K. (2017) 41 the effect of talent attraction on organizational performance of firms

listed in the Nairobi Securities Exchange. Journal of Human Resource and Leadership,

1(3), 18-30. Mahembe, 54 E. (2011) Literature review on small and medium enterprises

access to credit and support in South Africa. International Research Journal of Finance

and Economics, 39(6), 89-115. Makadok, R. (2010). The four theories of profit and their

joint effects. Journal of Management, 124(2), 61-63.

42 6 | P a g e Markowitz, H. M. (1959). Portfolio Selection: Efficient Diversification of

Investments. New York: Yale University Press. Mariana, S. (2012). The cost of capital,

finance and high-tech investment 106 International Review of Applied Economics 22(6),
693-705. Mclaney, E. (2009). Business Finance. London: Pearson Education Limited.

Memba, S., Gakure, W., & Karanja (2012). The Impact of Venture Finance on 58

Performance of small and Medium Enterprises in Kenya. International Journal of business

and social sciences, 3(6), 32-48. Mlambo, C., & Biekpe, N. (2007). The efficient market

hypothesis: evidence from ten African stock Markets; Investment Analysis Journal, 66(4),

5-17. 1 Modigliani, F., & Miller, M. (1958). The cost of capital, corporate finance, and the

theory of investment, American Economic Review, 48(5), 261-297. Monyi, J. (2017). 70

Determinants of financial performance of deposit taking microfinance institutions in Kenya.

PhD Thesis. Jomo Kenyatta University of Agriculture and Technology. Mugenda. M. &

Mugenda. G. (2012). Research Methods: Qualitative and Quantitative approaches. Nairobi.

Act press. Meyers, S. 11 C. (1984). The capital structure puzzle. The Journal of Finance,

39(3), 575- 592. Myers, S.C., & Majluf, N.S (1984). 8 Corporate financing and investment

decisions when firms have information that investors do not have. Journal of financial

Economics, 13(6), 187-221. Migiro, S. O (2013), Relating Kenyan manufacturing SMEs’ 79

finance needs to information on alternative sources of finance, South African Journal

Information Management, 8(1), 21-33. Modigliani, F. & Miller, M. (1958). 55 The cost of

capital, corporation finance and the theory of investment. American Economic Review,

6(3), 261-297. Mwangi, J. (2016). Effect of financial structure on financial performance of

firms listed at east africa securities exchanges, PhD Thesis. Jomo Kenyatta University

Agriculture and Technology. Mwanzia, S, M. (2019). Influence of Interest Rate Spread on

Loan Portfolio Performance amongst Listed Commercial Banks in Kenya, PhD Thesis.

Jomo Kenyatta University Agriculture andTechnology.

43 | P a g e Mwirie, M & Birundu, M. (2015) 1 the effect of capital structure on the

financial performance of small and medium enterprises in Thika Sub-County. International

Journal of Humanities and Social Science, 5(1), 151-157. Nimalathasan, B., & Valeriu B.

(2010) 42 Capital structure and its impact on profitability: A study of listed manufacturing

companies in Sri Lanka (2010), The Young Economists Journal 13(3), 55-61. Nafiu, L. A.,
(2012) An Alternate Estimation Method for Multistage 107 Cluster Sampling in Finite

Population, Unpublished Ph.D. Thesis, University of Ilorin, Ilorin, Nigeria, Namusonge, G.

S., Kabare, K. & Rita, K. (2014) Effect of talent retention 65 on organization performance in

companies listed in Nairobi Securities Exchange in Kenya, European Journal of Business

and Social Sciences, 3(1), 47-58. Namusonge, G. S., Kabare, K. & Mutua, S. (2014). Role

of human resource management practices on 80 performance of financial cooperatives

based in Nairobi County, Kenya. International Journal of Humanities and Social Science,

2(22), 289-297. Namusonge, G. S. (2010). Business Statistics: Concepts and Applications.

Beau Basin, Mauritius: VDM Publishing House Ltd. Nanagaki, L., & Namusonge, G. S.

(2014). 25 Factors influencing access to debt finance by micro and small enterprises: A

case of Chwele Township, Bungoma County. International Journal of Scientific Research

12(1), 70-93. Nawi, H. (2015) 43 Determinants of capital structure in small and medium-

sized enterprises (SMEs) in Malaysia and their effect on firm’s financial performance. PhD

Thesis Brunel University, London. Njeru, A.W., Namusonge, G.S. & Kihoro, J.M., (2012)

29 Size as a Determinant of Choice of Source of entrepreneurial Finance for Small and

Medium Sized Enterprises in Thika District, International Journal of Business and Social

Njeru, D. (2016). Effect of liquidity management on financial performance of deposit taking

saving and credit cooperative society in Kenya. PhD project, 13 Jomo Kenyatta University

of Agriculture and Technology.

44 | P a g e Njeru, W. (2013). 56 Determinants of choice of source of entrepreneurial

finance for small and medium sized enterprises, a survey of Thika District, PhD project,

Jomo Kenyatta University of Agriculture and Technology. Njeru, P. (2012). Effect of

entrepreneurial mindset on the 13 performance of manufacturing Firms in Nairobi Industrial

Area, PhD project, Jomo Kenyatta University of Agriculture and Technology. Njoroge, L.

(2010). Determinants 71 of financial performance in savings and credit cooperative

societies in Nairobi: MBA Project, University of Nairobi. Ng’ang’a, P. N. 36 (2017) Effect of

Ownership Structure on Financial Performance of Companies Listed at the Nairobi

Securities Exchange in Kenya. PhD project, Jomo Kenyatta University of Agriculture and

Technology. Nguyen, K., & Ramachandra, N. (2015). Capital structure in small and

medium-sized enterprises. ASEAN Economic Bulletin, 23(02), 192-211. Nunes, P.J.M., Z.

M. Serrasqueiro, T.N. Sequeira (2009), “Profitability in Portuguese Service Industries: a

Panel Data Approach”, 4 the Service Industries Journal, 29 (5), 693-707. Nyabwanga, R.

N., Ojera, P., Otieno, S. & Nyakundi, F. (2013). An 32 empirical analysis of the liquidity,

solvency and financial health of small and medium sized enterprises in Kisii Municipality,

Kenya. European Journal of Business and Management, 5(8), 1-15. Nyangoma, P. (2014)

66 Credit terms, access to finance and financial performance of SMEs in Kampala. MBA

Project: Makerere University, Uganda. Odhiambo, M., & Waiganjo, E. (2014). 30 Role of

human capital management strategies on employee mobility in Kenyas public Universities.

A case Study of Jomo Kenyatta University of Agriculture and Technology (JKUAT).

International Journal of Business and Social Science, 5(6), 185-189. 37 Odhuon, L.,

Kambona, O., Othuno, E. & Wandago, B. (2013). Key performance indicators in the

Kenyan hospitality industry. A Managerial perspective benchmarking, An International

Journal, 17(6), 858-875. Ojeka, S. (2013). Covenant University tax policy and growth of

SMEs implications for the Nigeria: African Journal of Business Management, 6(21),

6379-6387.

45 6 | P a g e Okelo, C. (2015). Determinants of financial performance of listed

companies on 13 the Nairobi Securities Exchange in Kenya. PhD project, Jomo Kenyatta

University of Agriculture and Technology. Okiro, O. (2014) corporate 49 governance,

capital structure, regulatory compliance and performance of firms listed at the East African

community security exchange. PhD project University of Nairobi. Omar, N. (2014). 50

Effects of Financial Planning on Business Performance: A Case Study of Small Businesses

in Malindi, Kenya. International Journal of Research in Commerce, IT and Management,

4(11), 88-97. Ongore, V. & Kusa, G, 18 (2013). Determinants of financial performance of

commercial banks in Kenya. International Journal of Economics and Financial issues, 3(1),
237-252. Otieno, S. (2012). Influences of employee performance and strategy on

performance of Kenya’s manufacturing firms operating under East Africa community

regional integration. PhD project. 13 Jomo Kenyatta University of Agriculture and

Technology. Pandey, I. M. (Eds). (2011). 86 Financial Management. New Delhi: Vikas

publishing house. Pouraghajan, A., Malekian, E., Emamgholipor, M., Lotfollahpour, V., &

Bagheri, M. (2012). 12 The relationship between capital structure and firm performance

evaluation measures: Evidence from the Tehran stock exchange. International Journal of

Business and Commerce 1(9), 166-181). Rajan, R. G., & Zingales, L. (1995). What 72 do

we know about capital structure? Some evidence from international data. Journal of

Finance, 50(5), 1421-1460. Ramadan, H., & Chen. J. (2009). Relationship between capital

structure and firm’s financial performance: An application on the UK capital market. Journal

of Finance, 47(2), 327- 360. Rissa, U, (2014) the 73 growth of industrial manufacturing in

Ethiopia and its contribution to GDP. MBA project, Addis Ababa University, Ethiopia.

Rotich, K. (2016). The effects of relationship banking and entrepreneurial orientation on 13

financial performance of manufacturing firms in Kenya An unpublished PHD project. Jomo

Kenyatta University of Agriculture and Technology. Sabana, B. (2014). Entrepreneur

Financial literacy, financial access, transaction costs and performance of micro enterprises

in Nairobi city county, Kenya. PhD Project University of Nairobi, Kenya.

46 6 | P a g e Sarder, J. H., Ghosh, D. & Rosa, P. (1997). The importance of support

services to small enterprises in Bangladesh. 1 Journal of Small Business Management,

35(2), 26-36. Sasaka, P. (2016). Effect 44 of strategic management practices on the

performance of corporate social responsibility of state parastatals in Kenya. Firms in

Kenya. PhD thesis. Jomo Kenyatta University of Agriculture and Technology. Saunders,

M., Lewis, P., & Thornhill, A. (2012). 45 Research Methods for Business Students (5th

Edn). New Jersey: Prentice Hall. Sekaran U., & Bougie R. (2011). Research methods for

business: A skill building approach. 5th Edition. Aggarwal printing press, Delhi. Sharpe, W.

F. (1988). Determining a 87 fund’s effective asset mix. Investment Management Review,

5(5), 59-69. Sunder, L., & Myers, S. (2009). Testing static tradeoff against pecking order

models of capital structure. Journal of Financial Economic Capital Structure, 51(4), 219-

244. Teker, D., Tasseven, O., & Tukel, A. (2009). Determinants of capital structure for

Turkish firms: A panel data analysis. 4 International Research Journal of Finance and

Economics, 30(9), 430-452. Tudos. & Mihaela. (2012). Capital structure and firm

performance, Journal of Financial Economics, 15(6), 77-92. Tufano, P. (2003). Financial

innovation. The 68 Handbook of the Economics of Finance. Holland: Elsevier. Ummar, M.

Tanveer, Z. & Aslam, S. (2012). 20 Impact of capital structure on firm’s financial

performance: Evidence from Pakstan. Research journal of finance and accounting 3(9),

122-137. Uzel, J. (2015) 51 Effect of Strategic Management Drivers on the performance of

the hotel industry in Kenyan Coast. PhD thesis, Jomo Kenyatta University of Agriculture

and Technology. Uzel, J. M. M., Namusonge, G.S. & Obwogi, J. (2014). 67 Effect of

strategic management drivers on the performance of the hotel industry at the Kenya’s

Coast. European journal of Business and Innovations Research, 2(1), 93-119.

47 | P a g e Vinasithamby, S. (2013). Determinants of capital structure – a study of listed

banks finance & insurance companies in Colombo stock exchange in Sri Lanka. 4

International Journal of Economics, Commerce and Management United Kingdom 2(10),

40-49. Wamiori, G., Namusonge G. S., & Sakwa, M (2016). 57 Effect of access to finance

on financial performance of manufacturing firms in Kenya. The Strategic Journal of

Business & Change Management 3(23), 403-421 Wamiori, G., Namusonge G. S., &

Sakwa, M. (2016). 12 Effect of capital structure on financial performance among

manufacturing firms in Kenya. International Journal of Finance Management 23(99),

42986-43005 Wengel, J., & Rodriguez, E. (2006). SME export performance in Indonesia

after the crisis. Journal of Small Business, 26(8), 25-37. Williams, J. (2012). Perquisites,

risk, 11 and capital structure, Journal of Finance, 42(6), 29-49. Williamson, O. (1988).

Corporate finance and corporate governance, Journal of Finance, 43(6), 567 591.

Williamson, R., & Yang, J. (2016). Can financially constrained firms loosen their constraints
through acquisitions, Journal of Financial Economics, 28(9), 57-75. Woodford, F., &

Michael, E. (2000). Monetary policy in a world without money International Finance, 3(2),

229-260. Wynarczyk. P., & Watson, R. (2005). Firm growth and supply chain partnership:

An empirical analysis of U.K. SME subcontractors. 1 Journal of Small Business

Management, 24(4), 39-51. Yassin, A., & Ahmed, S. (2012). Factors affecting the

performance of Jordanian insurance 4 companies listed at Amman stock exchange.

Journal of Management Research, 4(3): 266-269. Yazdanfar, D. (2013), “Profitability

determinants among micro firms: evidence from Swedish data”, International Journal of

Managerial Finance, 9(2), 150-160. Zeitun, R., & Tian, G. (2012), 12 Capital structure and

corporate performance: evidence from Jordan, Australasian Accounting Business and

Finance Journal, 1(4): 40- 53.

48 | P a g e
Sources
https://www.researchgate.net/publication/330352594_Determinants_of_leverage_and_its_impact_on_firm_perfor
1 mance-Ethiopian_insurance_industry
INTERNET
2%
https://en.wikipedia.org/wiki/Wolayita_Zone
2 INTERNET
1%
http://repository.smuc.edu.et/handle/123456789/3059
3 INTERNET
1%
https://www.researchgate.net/publication/299473192_The_Effect_of_Liquidity_on_Financial_Performance_Eviden
4 ce_from_Turkish_Retail_Industry
INTERNET
1%
http://erepo.usiu.ac.ke/handle/11732/3952
5 INTERNET
1%
https://www.studocu.com/en-us/document/university-of-the-people/basic-accounting/assessment-of-access-
6 to-finance-and-its-availability-for-smes-in-addis-ababa/42694129
INTERNET
1%
https://www.researchgate.net/publication/349408981_Determining_factors_of_financial_performance_of_agricult
7 ural_listed_companies_in_China
INTERNET
1%
https://www.researchgate.net/publication/320346503_Inventory_management_cost_of_capital_and_firm_perfor
8 mance_Evidence_from_manufacturing_firms_in_Jordan
INTERNET
1%
http://erepo.usiu.ac.ke/handle/11732/2644
9 INTERNET
1%
https://repository.maseno.ac.ke/handle/123456789/2908
10 INTERNET
1%
https://en.wikipedia.org/wiki/Capital_structure#:~:text=Modigliani and Miller made two findings under
11 these,firm, plus an added premium for financial risk.
INTERNET
1%
https://www.semanticscholar.org/paper/The-Relationship-between-Capital-Structure-and-Firm-Pouraghajan-
12 Malekian/0d18d04e88996a286600490cb6dcc4df24d26f27
INTERNET
1%
https://www.semanticscholar.org/paper/Factors-Affecting-Financial-Performance-of-Firms-In-
13 Audax/ab97ac0df8360e53799bec35e3de960cc97baf84/figure/1
INTERNET
1%

14 https://www.semanticscholar.org/paper/The-Effect-of-Firm’s-Size-on-Corporate-Performance-Meiryani-
O./04c7a3f2c6bb870393e1ba93597e64fb8f6de223/figure/1
INTERNET
 <1%

https://www.economicsdiscussion.net/financial-management/objectives-of-financial-management/33260
15 INTERNET
<1%
https://www.researchgate.net/publication/326141100_How_Measuring_Financial_Performance
16 INTERNET
<1%
https://www.grin.com/document/124462
17 INTERNET
<1%
https://www.researchgate.net/publication/344631430_Determinants_of_Financial_Performance_of_Microfinance_
18 Institution_in_Ethiopia
INTERNET
<1%
https://koreascience.kr/article/JAKO202026061031743.page
19 INTERNET
<1%
https://www.iiste.org/Journals/index.php/RJFA/article/view/3145
20 INTERNET
<1%
https://www.ijrbsm.org/papers/v5-i1/4.pdf
21 INTERNET
<1%
https://www.researchgate.net/publication/334187935_Impact_of_Firm_size_on_Profitability
22 INTERNET
<1%
https://www.termscompared.com/difference-between-financial-performance-measurement-and-non-financial-
23 performance-measurement/
INTERNET
<1%
https://www.researchgate.net/profile/Petar-
Todorovic/publication/339356134_LIQUIDITY_AS_PERFORMANCE_INDICATOR_-
_THE_IMPACT_OF_MARKET_CHANGES_AND_MANAGERIAL_DECISIONS/links/5f23246f299bf1340494b431/LIQUI
24 DITY-AS-PERFORMANCE-INDICATOR-THE-IMPACT-OF-MARKET-CHANGES-AND-MANAGERIAL-
DECISIONS.pdf?_sg[0]=started_experiment_milestone&origin=journalDetail
INTERNET
<1%
https://www.academia.edu/4632229/Factors_influencing_micro_and_small_enterprises_access_to_finance_since_t
25 he_adoption_of_multi_currency_system_in_Zimbabwe
INTERNET
<1%
https://www.coursehero.com/file/118467508/7-Chapter-3-Research-Designpdf/
26 INTERNET
<1%
http://pesjournal.net/journal/v1-n2/105.pdf
27 INTERNET
<1%
 https://www.smartcapitalmind.com/what-is-the-relationship-between-capital-structure-and-cost-of-capital.htm
28 INTERNET
<1%
https://www.semanticscholar.org/paper/Size-as-a-Determinant-of-Choice-of-Source-of-for-in-Njeru-
29 Namusonge/3cede0b37282a2e0b91ae95901180bd02e8d8128/figure/0
INTERNET
<1%
https://www.researchgate.net/publication/339292438_Role_of_Human_Capital_Management_Strategies_on_Emp
loyee_Mobility_in_Kenya's_Public_Universities_A_Case_Study_of_Jomo_Kenyatta_University_of_Agriculture_and_T
30 echnology_JKUAT
INTERNET
<1%
https://www.semanticscholar.org/paper/Study-on-the-Relationship-between-Capital-Structure-
31 Njenga/f794505f4cac58fb2492660ccba8134b6677e013
INTERNET
<1%
https://www.researchgate.net/profile/Robert-
Nyabwanga/publication/281974503_An_Empirical_Analysis_of_the_Liquidity_Solvency_and_Financial_Health_of_S
mall_and_Medium_Sized_Enterprises_in_Kisii_Municipality/links/5600640c08aeba1d9f84e0f2/An-Empirical-
32 Analysis-of-the-Liquidity-Solvency-and-Financial-Health-of-Small-and-Medium-Sized-Enterprises-in-Kisii-
Municipality.pdf?origin=publication_detail
INTERNET
<1%
https://books.google.com/books/about/Human_Capital.html?id=9t69iICmrZ0C
33 INTERNET
<1%
http://www.sciepub.com/reference/379402
34 INTERNET
<1%
https://strategicjournals.com/index.php/journal/article/view/1133/0
35 INTERNET
<1%
https://www.scirp.org/(S(i43dyn45teexjx455qlt3d2q))/reference/referencespapers.aspx?referenceid=2914817
36 INTERNET
<1%
https://www.researchgate.net/publication/319100685_The_Role_of_Information_Quality_on_the_Performance_of
37 _Hotel_Industry_in_Kenya
INTERNET
<1%
https://docs.tibco.com/pub/stat/13.6.0/doc/html/GUID-BA3F5731-93DC-4A3F-A72C-9E6394F9B804.html
38 INTERNET
<1%
http://www.sciepub.com/reference/126883
39 INTERNET
<1%
http://www.sciepub.com/reference/330056
40 INTERNET
<1%

41 https://www.semanticscholar.org/paper/The-effect-of-talent-attraction-on-organizational-Lyria-
Namusonge/a3fe2deff09a85b4678768d68a3eba072a12f071
INTERNET
 <1%

https://www.academia.edu/es/2501527/CAPITAL_STRUCTURE_AND_ITS_IMPACT_ON_PROFITABILITY_A_STUDY_
42 OF_LISTED_MANUFACTURING_COMPANIES_IN_SRI_LANKA
INTERNET
<1%
https://www.researchgate.net/profile/Hafizah-Mat-
Nawi-3/publication/342465622_DETERMINANTS_OF_CAPITAL_STRUCTURE_IN_SMALL_AND_MEDIUM-
43 SIZED_ENTERPRISES_IN_MALAYSIA/links/5ef58a58a6fdcc4ca431160b/DETERMINANTS-OF-CAPITAL-
STRUCTURE-IN-SMALL-AND-MEDIUM-SIZED-ENTERPRISES-IN-MALAYSIA.pdf
INTERNET
<1%
http://ir.jkuat.ac.ke/bitstream/handle/123456789/2405/peter sasaka.pdf
44 INTERNET
<1%
https://research.tilburguniversity.edu/en/publications/research-methods-for-business-a-skill-building-
45 approach-5th-editi
INTERNET
<1%
https://www.frbsf.org/economic-research/wp-content/uploads/sites/4/wp07-22bk.pdf
46 INTERNET
<1%
https://iosrjournals.org/iosr-jbm/papers/Vol9-issue1/B0911321.pdf
47 INTERNET
<1%
http://ir.jkuat.ac.ke/bitstream/handle/123456789/1598/KIARITHA, HANNAH WAITHERA- PHD BUSINESS
48 ADMINITRATION -2015.pdf
INTERNET
<1%
https://www.semanticscholar.org/paper/Corporate-governance,-capital-structure,-regulatory-
49 Okiro/3304b788e64bca04e45f668d42e3b6b46a831ef3
INTERNET
<1%
https://www.researchgate.net/publication/268517949_Effects_of_Financial_Planning_on_Business_Performance_
50 A_Case_of_Small_Businesses_in_Malindi_Kenya
INTERNET
<1%
https://www.academia.edu/en/40932261/Effect_of_Strategic_Management_Drivers_on_the_performance_of_the_
51 hotel_industry_in_Kenyan_Coast
INTERNET
<1%
https://www.paperpublications.org/upload/book/paperpdf-1602763483.pdf
52 INTERNET
<1%
http://ir.jkuat.ac.ke/bitstream/handle/123456789/1396/Kithae, P.P.- Phd entrpreneurship-2012.pdf?sequence=1
53 INTERNET
<1%
https://www.coursehero.com/file/pohe2ol/43-Mahembe-E-2011-Literature-Review-on-Small-and-Medium-
54 Enterprises-Access-to/
INTERNET
<1%
 https://www.tandfonline.com/doi/full/10.1080/17446540802345448
55 INTERNET
<1%
http://ir.jkuat.ac.ke/bitstream/handle/123456789/1503/Njeru, Agnes Wanjiru-PHD
56 Entrpreneurship-2013.pdf?sequence=1
INTERNET
<1%
https://www.semanticscholar.org/paper/EFFECT-OF-ACCESS-TO-FINANCE-ON-FINANCIAL-OF-FIRMS-Wamiori-
57 Sakwa/531e966e6ea8e1c1b4ecc9bbaf45043bc28f57bc
INTERNET
<1%
https://www.mdpi.com/1911-8074/13/5/97/htm
58 INTERNET
<1%
https://www.accountingnotes.net/financial-management/cost-of-capital/cost-of-capital-definition-importance-
59 and-aspects/6785
INTERNET
<1%
https://academic.oup.com/rof/article/25/5/1473/6179084
60 INTERNET
<1%
https://www.scribd.com/document/616256406/actual-intrenship-report-Autosaved
61 INTERNET
<1%
https://www.researchgate.net/publication/344038939_The_Role_of_Domestic_Debt_Markets_in_Economic_Growt
62 h_An_Empirical_Investigation_for_Low-Income_Countries_and_Emerging_Markets
INTERNET
<1%
https://econpapers.repec.org/RePEc:eee:jbrese:v:50:y:2000:i:2:p:185-191
63 INTERNET
<1%
https://www.semanticscholar.org/paper/Effect-of-Strategic-Management-Practices-on-of-for-
64 Githaiga/a20b62476d03bec1bb5d824a2a052da9ea4a1e7f
INTERNET
<1%
https://paper.researchbib.com/view/paper/322847
65 INTERNET
<1%
https://www.semanticscholar.org/paper/Credit-terms,-access-to-finance-and-financial-of-in-
66 Nyangoma/23d38d343b796fdee551de2f3ff3788c15789904
INTERNET
<1%
https://www.semanticscholar.org/paper/Effect-of-Strategic-Management-Drivers-on-the-of-in-
67 Uzel/1138f5b68d43b31074559d8083d6c5bdef80aec8
INTERNET
<1%
https://www.emerald.com/insight/content/doi/10.1108/JEFAS-03-2019-0031/full/html
68 INTERNET
<1%
 https://www.scirp.org/(S(351jmbntvnsjt1aadkposzje))/reference/referencespapers.aspx?referenceid=2490122
69 INTERNET
<1%
https://www.semanticscholar.org/paper/Determinants-of-Financial-Performance-of-Deposit-in-
70 Monyi/f3b3190b10beec31d26b89bb7c975dc5068176dd
INTERNET
<1%
https://www.semanticscholar.org/paper/Determinants-of-financial-performance-in-savings-in-
71 Njoroge/6789abb2f07eb15e352dd303ad218cc2c9bcd43f
INTERNET
<1%
https://www.nber.org/papers/w4875
72 INTERNET
<1%
https://catalog.ihsn.org/index.php/citations/50803
73 INTERNET
<1%
https://wise.com/us/blog/financial-performance
74 INTERNET
<1%
https://www.academia.edu/39392087/Corporate_governance_question_and_answers
75 INTERNET
<1%
https://www.embibe.com/exams/data-collection/
76 INTERNET
<1%
https://www.wisdomjobs.com/e-university/research-methodology-tutorial-355/measures-of-central-
77 tendency-11501.html
INTERNET
<1%
https://psycnet.apa.org/record/1952-03137-001
78 INTERNET
<1%
https://research.amanote.com/publication/q5zb3HMBKQvf0Bhi8sqh/relating-kenyan-manufacturing-smes-
79 finance-needs-to-information-on-alternative-sources
INTERNET
<1%
https://www.ijern.com/journal/November-2013/30.pdf
80 INTERNET
<1%
https://www.coursehero.com/file/p7muumk/The-cost-of-equity-for-a-firm-is-Answer-
81 dependentuponthefirmsdebt-equityratio/
INTERNET
<1%
https://www.coursehero.com/file/p4o6ave/70-supplement-published-annual-financial-statements-other-
82 important-quarterly/
INTERNET
<1%
 https://www.coursehero.com/file/38128485/9-Chapter-8-Preparation-of-statements-of-comprehensive-income-
83 and-financial-positionpdf/
INTERNET
<1%
https://writebetter.io/examples/is based on the assumption/
84 INTERNET
<1%
https://publicatt.unicatt.it/handle/10807/6116
85 INTERNET
<1%
http://www.sciepub.com/reference/214832
86 INTERNET
<1%
https://link.springer.com/article/10.1007/BF02936324
87 INTERNET
<1%
https://researchleap.com/wp-content/uploads/2016/08/The-Impact-of-Organizational-Factors-on-Financial-
88 Performance-Building-a-Theoretical-Model.pdf
INTERNET
<1%
https://www.iedunote.com/research-objectives
89 INTERNET
<1%
https://www.discoverphds.com/blog/significance-of-the-study
90 INTERNET
<1%
https://people.duke.edu/~jgraham/HowBigFinalJF.pdf
91 INTERNET
<1%
https://www.researchgate.net/publication/352782553_Conceptual_Frameworks
92 INTERNET
<1%
https://kembatatembarozone.gov.et/
93 INTERNET
<1%
https://www.researchgate.net/figure/Distribution-of-the-respondents-on-their-willingness-to-participate-in-
94 political_tbl2_328192050
INTERNET
<1%
https://comms.southsudanngoforum.org/uploads/short-url/bkhhhqUNNW4pmr6w9ADrT9EpxMF.pdf
95 INTERNET
<1%
https://www.athensjournals.gr/business/2018-4-4-4-Buyinza.pdf
96 INTERNET
<1%
https://www.scirp.org/(S(351jmbntvnsjt1aadkposzje))/reference/ReferencesPapers.aspx?ReferenceID=2003720
97 INTERNET
<1%
 https://business.columbia.edu/faculty/research/determinants-financial-performance-meta-analysis
98 INTERNET
<1%
https://onlinelibrary.wiley.com/journal/15384616
99 INTERNET
<1%
https://ejournal.uksw.edu/persi/article/view/3465
100 INTERNET
<1%
http://erepository.uonbi.ac.ke/handle/11295/58967
101 INTERNET
<1%
https://learn.financestrategists.com/explanation/accounting-ratios/return-on-equity-roe-ratio/
102 INTERNET
<1%
https://www.jstor.org/stable/20839193
103 INTERNET
<1%
https://www.statisticssolutions.com/spss-statisticalpackageforsocialsciences/
104 INTERNET
<1%
https://www.coursehero.com/file/p52mi2o8b/31-Sample-Size-Data-was-collected-from-52-out-of-71-
105 registered-members-of-the/
INTERNET
<1%
https://econpapers.repec.org/RePEc:taf:irapec:v:22:y:2008:i:6:p:693-705
106 INTERNET
<1%
https://www.semanticscholar.org/paper/Alternative-Estimation-Method-for-a-Three-Stage-in-Nafiu-
107 Oshungade/fadcc4163a28008d8db6d707b7d0de5dba5747ae/figure/0
INTERNET
<1%
https://1library.net/title/corporate-strategy-capital-structure-empirical-listed-manufacturing-arabia
108 INTERNET
<1%
http://www.ethiodemographyandhealth.org/SNNPR.html
109 INTERNET
<1%
https://www.brookings.edu/research/global-manufacturing-scorecard-how-the-us-compares-to-18-other-
110 nations/
INTERNET
<1%
https://www.academia.edu/28609020/SIGNIFICANCE_OF_THE_STUDY
111 INTERNET
<1%
https://www.scribbr.com/statistics/multiple-linear-regression/
112 INTERNET
<1%
 https://research.tilburguniversity.edu/en/publications/the-determinants-of-financing-obstacles
113 INTERNET
<1%
https://econpapers.repec.org/RePEc:eee:jbfina:v:30:y:2006:i:1:p:199-227
114 INTERNET
<1%
https://www.semanticscholar.org/paper/Effect-of-Entrepreneurial-Finance-on-the-Growth-of-Bunyasi-
115 Bwisa/a3597f3996476c093f24151b54337f1e9d0b6c8b/figure/0
INTERNET
<1%
https://ideas.repec.org/a/scm/usvaep/v13y2013i1(17)p183-191.html
116 INTERNET
<1%

EXCLUDE CUSTOM MATCHES OFF

EXCLUDE QUOTES ON

EXCLUDE BIBLIOGRAPHY ON