Evaluation of the Effects of Forward Contracts on Financial Performance of Listed Multinational Companies in Kenya

Evaluation of the Effects of Forward Contracts on Financial Performance of Listed Multinational Companies in Kenya

Julius N. Menge

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Mark Onchari

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Asenath Moabe

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Mactosh Onwonga

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Kisii University

Evaluation of the Effects of Forward Contracts on Financial Performance of Listed Multinational Companies in Kenya

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Abstract

The aim of the study was to evaluate the effect of forwards contracts on the financial performance of multinational companies in Kenya. The study used descriptive and crosssectional research designs. The population consisted of nine companies listed at Nairobi securities exchange under the banking sector and one form the energy sector. The sample size of this study was three companies. Purposive sampling was applied to arrive at the sample size of three Multinational companies. Secondary data was collected from published annual financial reports for ten years from 2009-2018. Descriptive and inferential methods were applied to analyze the obtained data. The findings of the analysis were presented using tables and figures. The study found out that forward contracts had a positive correlation with the financial performance of multinational companies. The study concluded that forwards had direct and statistically insignificant effects on financial performance.

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

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Not applicable for this article.

How to Cite This Article

Julius N. Menge. 2020. \u201cEvaluation of the Effects of Forward Contracts on Financial Performance of Listed Multinational Companies in Kenya\u201d. Global Journal of Management and Business Research - C: Finance GJMBR-C Volume 20 (GJMBR Volume 20 Issue C4).

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GJMBR Volume 20 Issue C4

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Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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GJMBR-C Classification JEL Code: G00

Submission ReceivedDecember 14, 2019
Peer Review Double Blind
Handling Editor
Accepted January 5, 2020
Published January 15, 2020

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September 22, 2020

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