School of Business
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Item Influence of Tax Planning on Financial Performance of Manufacturing Companies Listed at Nairobi Securities Exchange(International Journal of Research in Business and Social Science, 2019) Oeta, Simeon Mogote; Kiai, Richard; Muchiri, JosephThis study sought to find out the influence of tax planning on financial performance of the manufacturing firms listed on the Nairobi Securities Exchange during the period 2010-2017.The study adopted a positivism research philosophy and an explanatory research design. SPSS version 23 was used to analyze data where both descriptive and inferential statistics was done. Multiple linear regression model was adopted to study the association between the variables while utilizing panel data. The study findings showed that there is no significant statistical association between tax planning and financial performance of the manufacturing companies listed in the Nairobi Securities Exchange. The results of the study indicated that capital intensity, research and development expenditure and company size have a positive insignificant association with financial performance. Further, debt to equity ratio indicated an insignificant negative relationship with financial performance. The study concluded that financial performance of manufacturing firms listed at the Nairobi Securities Exchange is not influenced by the tax planning. The study recommends that the manufacturing companies invest more in non-current assets and increase expenditure on the research and development to realize significant positive impact on financial performance. They should also manage their debt to equity ratios to avoid excess financing costs that may be detrimental to their financial performance.Item Capital Intensity and Financial Performance Of Manufacturing Companies Listed At Nairobi Securities Exchange.(International Journal of Scientific & Engineering Research, 2019-09) Oeta, Simeon Mogote; Kiai, Richard; Muchiri, Josephixed assets form a significant portion of a company’s expenses and instrumental in shaping probable returns for organizations. Capital intensity for manufacturing companies is vital in informing cost management and investment decisions. Companies are given tax allowances on fixed assets in the form of wear and tear, investment and industrial building deduction which provide tax credits with consequential effects of increasing organizational after-tax returns. Manufacturing sector is key to economic growth and Kenya is experiencing stagnate contribution of this sector to economic growth. Little literature is available that establishes the association between capital intensity and financial performance of the manufacturing sector. Therefore, this study sought to find out the relationship between capital intensity and financial performance for manufacturing companies listed in the Nairobi Securities Exchange during the period 2010-2017. The study was anchored on tax planning theory, trade-off theory, agency cost theory and political power theory. The study adopted a positivism research philosophy and an explanatory research design. The target population of the study was all the nine listed manufacturing companies in NSE. Descriptive and inferential statistics was done using panel data and SPSS version 23 software for data analysis. The findings indicated that capital intensity has a positive insignificant association with financial performance. It concluded that capital intensity does not affect financial performance of manufacturing firms listed in Nairobi Securities Exchange. The study recommended that the companies should investment more in non- current assets so as to reap capital allowances tax benefits in order to improve their financial performance. The study will be beneficial to the management as it provides insights on how firms can increase their financial performance while leveraging on capital intensity.