Effect of Financial Transparency on Financial Performance of Companies Listed in East Africa Securities Exchanges

Abstract

Financial performance is normally viewed as how best managers have been able to utilize the resources available to the firm to enhance value. The main goal of shareholders in any company is to maximize their wealth which is enabling when a firm is performing well from time to time. The current sought to examine the effect of financial transparency on financial performance of companies listed in East Africa. Specifically, the study sought to find out the effect of financial policy, investment policy and liquidity disclosures on financial performance. Correlation research design and purposive sampling was used to select 73 which were listed from 2006 to 2015. Descriptive, correlation and regression analysis were used to analyse secondary data. Results of the study revealed positive and significant relationship between financial policy, investment policy, financial liquidity and financial performance.

Keywords: Financial Transparency, Financial Policy, Investment Policy, Financial Liquidity, Financial Performance.