EFFECT OF LIQUIDITY ON GROWTH OF MANUFACTURING FIRMS IN KENYA

This study investigated the effect of liquidity on growth manufacturing firms in Kenya. The sampled 102 from a target population 708 registered Kenya Association Manufactures 2017 directory. majored trade-off theory capital structure. To systematically solve research hypothesis, study’s methodology adopted both descriptive and quantitative design approach. consisted who were members KAM part with at least five years existence (i.e., are 2011 to 2016). used stratified random sampling due varied features firms’ population. primary data was produce statistics that for trend analysis while secondary inferential (correlation regression) conducted diagnostic tests hypotheses. administered total questionnaires out which 80 dully filled returned. null hypothesis firm’s having no significant rejected. results revealed there statistically positive influence by predicts linkage between leverage pecking order negative relationship (Sheikh & Wang, 2011). as current ratio, is positively significantly associated firm growth. areas identified further include considering other structure determinants besides liquidity, this considered. Contract impact leasing fixed assets Manufacturing Industry also future research. Key Words: Liquidity, CITATION: Adede, A. A., Namusonge, G., Sakwa, M. (2022). Effect Strategic Journal Business Change Management, 9 (4), 494 - 509.