Abstract:
amount of capital that is necessary to absorb unexpected losses arising from their market, credit and operational risk exposures. The sector has recorded double-digit growth in profits for most of the past decade, when the economic growth has averaged at about five per cent. Factors such as amount of debt, the risks associated with indebtedness, interest rates and debt equity combination and the management of accounts receivables and accounts payables could affect the financial performance of firms. The study used panel data over a five year period (2009 to 2013) to examine the effect of Leverage, Liquidity, Firm size, Day’s accounts receivables and accounts payables on Returns on Equity and Assets on financial performance of listed non-financial firms. Regression coefficients were interpreted using the E-views software output.
