BANKRUPTCY RISK INDICATORS AND FINANCIAL REPORTING TIMELINESS: THE CASE OF COMPANIES LISTED AT NAIROBI SECURITIES EXCHANGE, KENYA
DOI:
https://doi.org/10.47604/ijfa.1411Keywords:
Bankruptcy Risk Indicators, Financial Reporting Timeliness, Listed CompaniesAbstract
Purpose: The study sought to investigate effect of bankruptcy risk indicators on financial reporting timeliness of listed companies in Kenya.
Materials and Methods: The study adopted a desktop methodology. Desk research refers to secondary data or that which can be collected without fieldwork. Desk research is basically involved in collecting data from existing resources hence it is often considered a low cost technique as compared to field research, as the main cost is involved in executive’s time, telephone charges and directories. Thus, the study relied on already published studies, reports and statistics. This secondary data was easily accessed through the online journals and library
Results: The results revealed that the studies done had conceptual framework gap. The study also found out that the study had geographical gap because they were not conducted in Kenya and also had different methodological gap.
Unique contribution to theory, practice and policy: The findings of the study add to the databank of knowledge on the effect of bankruptcy risk on the timeliness of financial reporting of listed on NSE which propels further discussion on the subject. The findings will provide useful insights to corporate executives on bankruptcy risk attributes that have a bearing on financial reporting for their implementation. The findings of the study inform investors on bankruptcy risk indicators to look into that contribute to timeliness of financial reporting. This information is very useful to investors when choosing in which listed companies to invest their money. Finally, the findings of the study inform the regulator (CMA) the timeliness of financial reporting of companies listed on NSE in Kenya. This information forms a base on policy formulation in search of measures that can protect and improve timely financial reporting in corporate world to enhance market efficiencies.
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