Financial Leverage and Financial Performance of Listed Manufacturing Firms in Kenya

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Firms utilizing financial leverage strategically experienced improved financial performance due to debt usage.
Return on assets was used as a key measure of financial performance across a decade of data from Kenyan firms.
Panel regression analysis confirmed a positive correlation between leverage and profitability, underscoring effective debt management.
While leveraging can enhance performance, firms must manage fixed obligations to prevent potential financial distress.

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Quantitative analysis shows financial leverage influences performance in listed manufacturing firms, implying careful debt management is essential.

Obonyo et al. (2025) studied this question.

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Quantitative analysis shows financial leverage influences performance in listed manufacturing firms, implying careful debt management is essential.