Effect of Capital Allowance Incentives on the Financial Performance Of listed Consumer Goods Companies in Kenya

dc.contributor.authorRebecca Ngugi Muthee
dc.contributor.authorPatricia Gachambi Mwangi
dc.contributor.authorJohn Mutua
dc.date.accessioned2025-06-20T05:56:44Z
dc.date.available2025-06-20T05:56:44Z
dc.date.issued2024
dc.descriptionArticle
dc.description.abstractThe Consumer goods sector has been a major driver of industrial growth, leading to some international firm to enter the market thus increasing existing investment in recent years. However, their financial performance is lowlands ubpar. The companies have experienced a decline on the contribution to the country’s GDP from 5.0% in 2017 to 4.1% in the manufacture of food, beverages and tobacco sector. Nevertheless, there is paucity of empirical and conceptual knowledge on the phenomenon influence of capital allowance incentive on the financial performance. This study was anchored on the Agency cost theory. Descriptive cross-sectional design was used. The study used secondary data which was collected using a checklist and was extracted from the Nairobi Security Exchange (NSE) reports between the year 2017-2021. The target population of the study comprised of the thirteen listed consumer goods companies in the Nairobi Securities Exchange as at 31st December 2021. The study used census technique. Data analysis was done with the aid of SPSS version 25.0. The study used correlation analysis and multiple regression to determine the relationship between capital allowance incentives and financial performance. To test the statistical significance, the t-statistic at 95% The confidence level was used. Data was presented using tables and figures. Further, it was found that capital allowance had a positive regression coefficient of (0.739, p-value of 0.0463). The study will be useful to listed consumer goods companies to institute more robust capital allowance incentives. The study will also contribute to the body of knowledge for both researchers and academicians.
dc.description.sponsorshipChuka University
dc.identifier.citationMuthee Rebecca Ngugi, Mwangi Patricia Gachambi & Mutua John. (2024). Effect of Capital Allowance Incentives on the Financial Performance Oflisted Consumer Goods Companies in Kenya In: Mutembei Henry, Nduru Gilbert, Munyiri Shelmith, Gathungu Geofrey, Kiboro Christopher, Otiso Wycliffe, Rithaa Jafford, Miriti Gilbert, Gichumbi Joel, Mwathi David, Gitonga Lucy, Nanua Jackin, Kahindi Roseline, Jonathan Kathenge & Muthui Zipporah (Eds.). Proceedings of the Chuka University Tenth Annual International Research Conference held in Chuka University, Chuka, Kenya from 5th to 6th October, 2023.351-360 pp.
dc.identifier.urihttps://repository.chuka.ac.ke/handle/123456789/20183
dc.language.isoen
dc.publisherChuka University
dc.subjectCapital allowance incentive
dc.subjectfinancial performance and consumer goods companies.
dc.titleEffect of Capital Allowance Incentives on the Financial Performance Of listed Consumer Goods Companies in Kenya
dc.typeArticle

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