Browsing by Author "Kayemba, Aaron Joseph"

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    Company Size, Financial Leverage, Liquidity and Financial Performance of Companies Listed on the Uganda Securities Exchange.
    (2023) Kayemba, Aaron Joseph
    The aim of this study was to establish the relationship between company size, financial leverage, liquidity and the financial performance of companies listed on the Uganda securities exchange. This study used a sample of 17 companies for the period 2017 to 2021. The dependent variable was financial performance measured by return on assets (ROA) and return on equity (ROE). The independent variables were financial leverage measured by debt-to equity ratio (DER) and company size measured by Ln (total assets). Liquidity, the mediating variable was measured using the current ratio (CR). This study used secondary data extracted from the audited annual financial statements of the listed companies. Analysis was conducted using multiple regression of panel data. The Baron and Kenny’s (1986) approach was used to test mediation. The results showed that Company size has a negative insignificant effect on financial performance (ROA) and a positive insignificant effect on financial performance (ROE). Financial leverage has a negative insignificant effect on financial performance (ROA) and a positive significant effect on financial performance (ROE). Liquidity has a positive significant effect on financial performance (ROA) and a positive insignificant effect on financial performance (ROE). Liquidity does not mediate the relationship between company size and both measures of financial performance. Likewise, liquidity does not mediate the relationship between financial leverage and both measures of financial performance. The main limitation of the study was inaccessibility of data from UCHUMI which had to be dropped from the study eventually.