LIQUIDITY MANAGEMENT PRACTICES AND PERFORMANCE OF HORTICULTURAL FIRMS IN LAIKIPIA COUNTY, KENYA
Abstract
The objective of this study was to assess how liquidity management practices influence the performance of horticultural firms. The research was grounded in the liquidity preference theory, providing the theoretical framework for the investigation. Employing a descriptive survey method, the study concentrated on thirty-five horticulture businesses in Laikipia County. The targeted participants included Accountants, Customer Relation officers, Human Resource Officers and Production Managers from these horticulture firms. The researcher conducted a census involving 140 participants within the population of interest. Primary data were gathered through questionnaires, and a pilot study was executed to assess reliability using the Cronbach alpha coefficient. Descriptive analysis techniques such as generating frequencies, mean and standard deviation were applied. Linearity was tested using Pearson Correlation, the normality of data distribution was examined through a histogram, multi-collinearity was assessed using the Variance Inflation Factor, and independence was verified using the Durbin Watson (d) statistic. These tests were conducted before subjecting the data to bivariate linear regression. The findings of the linear regression analysis revealed a positive and significant impact of liquidity management practices on performance of horticultural firms. In light of these results, the study proposes that effective liquidity management practices be implemented to ensure timely fulfillment of financial obligations, thereby enhancing the overall performance of horticultural firms.
Key Words: Liquidity Management Practices, Performance and Horticultural Firms
CITATION: Murebu, W. K., Kuria, A., & Kariuki, B. (2024). Liquidity management practices and performance of horticultural firms in Laikipia County, Kenya. The Strategic Journal of Business & Change Management, 11 (3), 249 – 260. http://dx.doi.org/10.61426/sjbcm.v11i3.3019
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DOI: http://dx.doi.org/10.61426/sjbcm.v11i3.3019
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