| dc.description.abstract | The choice between debt and equity financing has been directed to see� 'the optimal capital
structure.
This research was an attempl to gauge the impact of capital structure on financial performance of
cement manufacturing companies listed on the NSE. Capital structure has attracted strong debate
and scholars attention across the manufacturing industry in general rnoreso cement manufacturing
firms over the past years. Capital structure decision is a vii al one since profitability of enterprises
.
and companies is directly affected by such decision. The objectives of the study were to examine
the relationship between capital structure on financial performance of the listed cement
manufacturing plants in Kenya. The study adopted a descriptive survey research design. The
target population comprised of approximately 2861 employees .from all the three cement
manufacturing firms. Stratified random sampling was adopted to select 30 respondents across the
firms.this was selected from among managemenl, only 25 respondents filled the questionnaires
and _returned. The data analysis tool was the Stratified Package for Social Sciences (SPSS). The
data gathered was analysed using descriptive statistics like percentages and frequencies. This
descriptive design provided a link between the theoretical perspectives, research purposes and
the data collected which in turn brought out the research findings. The results were presented
using ligures. tables, graphs and pie charts but for the purpose of presentation, I the researcher
used figures and tables.Data analysis used both qualitative and quantitative in terms of research
quantity and identified relevanl causes of action.
From the research findings.it is clear that, capital structure hasa strong relationship with
linancial performance of cement manufacturing firms in Kenya'. According to debt-equity to
capital ratio. 84% of the respondents said that high debt-equity ratio increases the profitability of
cement manufacturing firms in general. In the case of' inflation, about 80% of the respondents
agreed that increased inflation affects financial performance of the firms, Based on financial
risks. it is clear that, increased fiancial risks of a firm affects financial Jerforrnance. This is also
evidenced in the research finding analysis where. almost all the' respondents agreed with the
statement. Size of a firm conlributes lo its pro Ii ta bi lily, 80% of the respondents agreed with the
satetement and only 20% disagreed with it. Size ofa firms makes it diverse and thus gaining its
competitive advantage in the market. It also brings about positive impact on financial | en_US |
