Authors :
Stephen Kimani Kiarie; DR. Clement O. Olando
Volume/Issue :
Volume 7 - 2022, Issue 7 - July
Google Scholar :
https://bit.ly/3IIfn9N
Scribd :
https://bit.ly/3QOqRgf
DOI :
https://doi.org/10.5281/zenodo.7003841
Abstract :
Medium-term finances affect the profitability of
supermarkets. Supermarkets have been struggling and
experiencing financial uncertainty that has impacted their
operations leading to bankruptcy in some of the
supermarkets. The empirical studies have shown that the
issue has not received attention from scholars in Kenya
and especially for the supermarkets and that none of the
studies have focused on medium-term financing and the
profitability of supermarkets in the central business
district of Nairobi city, thus the existence of a knowledge
gap which need to be filled. Therefore, the study sought to
fill the gap by assessing the effect of medium-term
financing on the profitability of supermarkets in the
central business district of Nairobi city Kenya. The study
was guided by the theory of Modigliani and Miller. A
cross-sectional survey and a descriptive research strategy
were utilized in this study. The target population of this
study was 18 supermarket branches in Nairobi's central
business district Kenya. The study specifically targeted the
18 branch managers and 18 accountants of these
supermarkets. The study adopted the census sampling
technique. Questionnaires were used to collect primary
data and secondary data from financial statements and
yearbook reports of supermarkets from 2016 to 2018. Data
were analyzed using correlation and regression models
with the support of the Statistical Package for Social
Sciences (SPSS). Descriptive and inferential statistics
specifically, mean, standard deviation and trends analysis
were conducted. Statistics were presented in tables and
figures. The correlation outcomes revealed that mediumterm financing and profitability were positively and
significantly correlated (r = 0.579, Sig < 0.05). Regression
results showed that medium-term financing significantly
influenced the profitability of supermarkets in the central
business district of Nairobi city Kenya (β=0.650; Sig <
0.05). The study concluded that medium-term financing
had a significant and positive relationship with the
profitability of supermarkets in the central business
district of Nairobi city Kenya. The study recommends that
supermarket managers should strive to maintain an
appropriate medium-term funding level to help increase
profits and growth of supermarkets, therefore
supermarkets should be averagely leveraged
Keywords :
TermsKeywords:-Asset Finance, Lease Finance, Hire Purchase Finance, Profitability
Medium-term finances affect the profitability of
supermarkets. Supermarkets have been struggling and
experiencing financial uncertainty that has impacted their
operations leading to bankruptcy in some of the
supermarkets. The empirical studies have shown that the
issue has not received attention from scholars in Kenya
and especially for the supermarkets and that none of the
studies have focused on medium-term financing and the
profitability of supermarkets in the central business
district of Nairobi city, thus the existence of a knowledge
gap which need to be filled. Therefore, the study sought to
fill the gap by assessing the effect of medium-term
financing on the profitability of supermarkets in the
central business district of Nairobi city Kenya. The study
was guided by the theory of Modigliani and Miller. A
cross-sectional survey and a descriptive research strategy
were utilized in this study. The target population of this
study was 18 supermarket branches in Nairobi's central
business district Kenya. The study specifically targeted the
18 branch managers and 18 accountants of these
supermarkets. The study adopted the census sampling
technique. Questionnaires were used to collect primary
data and secondary data from financial statements and
yearbook reports of supermarkets from 2016 to 2018. Data
were analyzed using correlation and regression models
with the support of the Statistical Package for Social
Sciences (SPSS). Descriptive and inferential statistics
specifically, mean, standard deviation and trends analysis
were conducted. Statistics were presented in tables and
figures. The correlation outcomes revealed that mediumterm financing and profitability were positively and
significantly correlated (r = 0.579, Sig < 0.05). Regression
results showed that medium-term financing significantly
influenced the profitability of supermarkets in the central
business district of Nairobi city Kenya (β=0.650; Sig <
0.05). The study concluded that medium-term financing
had a significant and positive relationship with the
profitability of supermarkets in the central business
district of Nairobi city Kenya. The study recommends that
supermarket managers should strive to maintain an
appropriate medium-term funding level to help increase
profits and growth of supermarkets, therefore
supermarkets should be averagely leveraged
Keywords :
TermsKeywords:-Asset Finance, Lease Finance, Hire Purchase Finance, Profitability