Browsing by Author "Mbogo, Simon M."

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    Effects of sustainability reporting on the financial performance of manufacturing firms in Kenya
    (KCA University, 2025) Mbogo, Simon M.
    The last decade has seen sustainability reporting gain momentum across the globe. The number of stakeholders consuming financial and non-financial information about companies’ activities has risen. This study examined the effect of sustainable reporting on the financial performance of manufacturing firms in Kenya. The general objective of the study was to examine the effect of sustainable reporting on the financial performance of manufacturing firms in Kenya. This study had four specific objectives: to assess the role of environmental disclosures, social disclosures, governance disclosures and economic sustainability disclosures on financial performance of manufacturing firms in Kenya. This study adopted correlational research design. The population of this study were all manufacturing firms in Kenya that are member firms of Kenya Association of Manufacturers. The sample comprised of 310 manufacturing firms. Primary data was collected by use of a structured questionnaire. Both descriptive and inferential statistics were used in data analysis. The results of the study should that sustainability reporting had significant role on financial performance of manufacturing companies in Kenya (R2= 0.423, p,0.05). Further, the study found out that there was a significant positive effect of environmental disclosure on financial performance (â=0.136, p<0.05). Similarly, social disclosures had positive significant effect on financial performance (â=0.110, p<0.05). Also, similar outcome was found for the effect of governance disclosures on financial performance (â=0.193, p<0.05) and economic sustainability disclosure on financial performance of manufacturing firms in Kenya rejected (â=0.261, p<0.05). This implied that all components of sustainability reporting had positive effect on financial performance of manufacturing firms. The study recommended that manufacturing firms should adopt sustainability reporting in full as this would improve financial performance. Equally, it was recommended that policy makers such as Capital Markets Authority to come up with sustainability reporting framework that would work for local companies in Kenya.