Financial Research Proposal

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FIRM CHARACTERISTICS AND FINANCIAL DISTRESS ON LISTED FIRMS IN NAIROBI SECURITIES EXCHANGE IN KENYA

RACHAEL WANGUI MAINA

A Research Proposal Submitted In Partial Fulfillment of the Requirements for Master Degree in Commerce (MSC) School of Business and Public Management, KCA University
AUGUST, 2015

DECLARATION
I declare that this research proposal is my original work, and to the best of my knowledge, has not been presented to any other university for an award of a degree.

Signature________________________
Rachael Wangui Maina
KCA/13/01928

DECLARATION BY THE SUPERVISOR
This research proposal has been submitted for examination by my authority as the candidate’s university supervisor.
Signature------------------------------------ …show more content…

Financial process stage comprises of the period of slight performance deterioration through the impairment stage down to the deepest point and then to recovery. Time Frames can be analyzed in the following scenario: Predicting business default for more than three years before bankruptcy mostly reduces the accuracy of the model. Ex-post analysis of financial distress reveals earlier signs of corporate performance five to six years before bankruptcy, however these symptoms’ existence are questionable. These signs are unobservable, mostly of strategic and not of financial nature and therefore cannot be easily quantified. As time increases, these symptoms become observable (two years before default) and the entity becomes severely distressed. Normally, for the entity to restructure the debt after such default, this takes an average period of two to three …show more content…

This will enhance quantity and quality of data at all levels. According to Kothari (2004), when deciding on data collection procedure, one needs to safeguard against bias and unreliability of the procedure used. This study will use secondary data from NSE hand books and published financial statements. In addition the study will collect secondary data from investment funds. From the financial statements the researcher will consider income statement, statement of financial position and notes to the accounts for the stated period of the study. All listed firms be given equal chance regardless of their delisting period, this will control biasness within the