School of Business
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Item Effect of sustainability reporting on financial performance of firms listed at the Nairobi securities exchange in Kenya: the moderating role of ownership structures(KCA University, 2025) Githii, Evans N.Over the past decade, several listed firms in Kenya have experienced poor financial performance leading to delisting or suspension from the Nairobi Securities Exchange (NSE). This study examined the effect of ESG disclosures on the financial performance of NSE-listed companies and assessed whether ownership structure moderated this relationship. Anchored on the Agency, Stakeholder, Signaling and Legitimacy theories, this study adopted a mixed methods design using secondary ESG and financial data from a census of 62 NSE-listed firms between 2019-2024, extracted using a Global Reporting Initiative (GRI)-aligned data extraction sheet. Panel regression models tested the effect of disaggregated environmental, social, and governance disclosures on return on assets (ROA), while interaction terms captured ownership-structure moderation. Complementary thematic analysis of narrative disclosures provided qualitative context. The Findings show that environmental and governance disclosures had a positive and statistically significant association with ROA (p< 0.05), whereas social disclosures were positive but not significant after controls. Ownership structure particularly institutional and foreign shareholding strengthened the ESG-performance link, confirming a moderating effect. Diagnostic tests (normality, multicollinearity, heteroskedasticity) supported model robustness. Thematic analysis highlighted that firms with high institutional ownership emphasized climate-risk reporting and board transparency, reinforcing quantitative results. These results suggest that credible ESG reporting, coupled with active institutional or foreign ownership, enhances profitability and market confidence among Kenyan listed firms. The study provides actionable evidence for regulators considering mandatory ESG disclosure, and for investors and managers seeking to align sustainability practices with financial performance.Item Effect Of Macroeconomic Variables On Profitability Of Commercial Banks Listed In The Nairobi Securities Exchange(KCA University, 2014) Nzioka, Lessah N.Based on vital contribution of the commercial banks to economic progression in Kenya, this study endeavored to establish the effect of macroeconomic variables on the profitability of commercial banks listed in the Nairobi Securities Exchange (NSE) for years 2001 – 2012. Panel data model was used to examine the effects of three major macroeconomic variables which included Gross Domestic Product (GDP), dollar foreign exchange rate, and interest rates on profitability which was measured through return on Assets (ROA). The study correlation findings indicated that real GDP growth rate did not have any significant relationship with financial profitability of the listed commercial banks which was measured using ROA. Further, dollar exchange rate and real interest rate had a significant relationship with profitability of commercial banks. Panel regression results indicated that Real GDP had an insignificant positive effect on profitability of listed commercial banks in Kenya. Further, real interest rates had a significant negative effect on profitability of commercial banks. Dollar exchange rate had a significant positive influence on profitability of quoted commercial banks in Kenya. The findings have implication for the Government, regulatory authorities and the listed commercial banks themselves. The government and regulatory agencies should ensure that these important macroeconomic variables are well managed as they have implications for the growth in the various major industries in the economy. Secondly, rise in interest rates should be managed by applying effective policies and measures by the central bank. Banks also should have effective measures to manage interest rate risks so that their profitability is not affected adversely. Thirdly, though rise in exchange rate was associated with increase in bank profitability in this study, it is a fact that a fast depreciating local currency can create instability within other macroeconomic variables. This necessitates the efforts by the Central Bank of Kenya which is the pivot monetary authority in Kenya to put in place different measures at stabilizing the local currency. The Central Bank of Kenya needs to focus more on macroeconomic policies mostly in areas relating to exchange management with a view to achieving a realistic exchange rate that will aid economic growth and achieve a relative stability in the value of the Kenya shilling against the dollar. However, banks should also have in place risk mitigating strategies to counter foreign exchange fluctuations.