UNDERSTANDING CASH FLOW HOLDINGS ON FINANCIAL PERFORMAMNCE OF LISTED NON-FINANCIAL FIRMS IN KENYA

Non financial firms in Kenya are characterized by a decline in performance with low market price of the shares. Literature available shows that financial performance is known variable on Listed Non financial firms in developed economies. This study sought to establish the effects of Cash holdings on financial performance of listed non- financial firms in Kenya. The objective of the study was to establish the effects of Cash holdings on the financial performance of listed non-financial firms in Kenya The study also adopted supporting theory for the study objectives which was the Trade-off theory. The study used causal research design and the target population constituted 42 listed non - financial firms at the NSE under different categories. The study used secondary panel data contained in the annual reports and financial statements of listed non-financial companies from the NSE Hand Book 2009-2013. A regression model was used to analyze the objectives the results were presented using descriptive statistics and inferential analysis such as Student t test. The results of statistical tests show that cash flow holdings have positive effect corporate financial performance (ROA).