Title:
Effects of Retained Earnings on Financial Performance of Listed Commercial Service Sectors at Nairobi Securities Exchange in Kenya

Authors:
Bernard okioga Moenga, Dr. Andrew Nyangau & Dr Cornelius Kurere, Kenya

Abstract:

The aim of this study was to the effects of retained earnings on financial performance of commercial and service firms listed at Nairobi Securities Exchange in Kenya.  It was  supported by Pecking order theory retained earnings. The study adopted descriptive designs. The target population of the study was all 11 commercial and services firms  at Nairobi securities exchange. The study applied purposeful sampling technique to select10 firms  as the sample size. Data was collected form published annual reports and financial statements for 10 from 2011-2020. Data analysis was done using descriptive (Mean and standard deviation and inferential statistics(correlation and inferential statistics). Analyzed data was presented in tables. This ought to increase the application of retained earnings as their source of funding. Retained earnings has no financial obligations thus enhancing financial performance. Increasing usage of retained earnings would positively and significant effect on financial performance.

DOI: https://doi.org/10.51505/IJEBMR.2025.9524