Relationship Between forward-looking information disclosure and Financial Performance of Non-Financial Firms Listed in Nairobi Securities Exchange, Kenya
International Journal of Academic Research in Business and Social Sciences
This study envisaged to determine the relationship between forward-looking information disclosure and financial performance of non-financial firms listed in the Nairobi Securities Exchange (NSE). Performance indicator was market based measurement (Tobin's Q ratio). The study employed descriptive cross-sectional research design. A census of 45 non-financial firms listed in NSE, was taken. The study used secondary panel data contained in the annual reports of non-financial firms listed in NSE,
... s listed in NSE, Kenya. The data was extracted from the NSE hand book for the period 2011-2015 and from companies' websites. This was complimented by semistructured questionnaires which were given to 45 Chief Executive Officers. Data analysis was done by both descriptive (measures of central tendency and dispersion) and inferential statistic (multiple regression analysis and correlation analysis) with help of Statistical Packages of Social Sciences (SPSS version 22). The results revealed that there was a significant positive linear relationship between forward-looking information disclosure and firm financial performance measured by Tobin's Q of listed non-financial firms in Kenya. Based on these findings the study concluded that listed non-financial firms should voluntary disclose their forward-looking information to all their stakeholders.