Abstract:
This study sought to determine the effect of capital attributes of listed commercial and services
firms and their performance. The study was guided by the following key objectives: to analyze
the relationship between financial leverage and performance of commercial and services
companies listed in NSE, Kenya; to assess the relationship between total current liabilities to
total assets ratio and performance commercial and services companies listed in NSE, Kenya;
and to investigate the relationship between total current assets to total assets ratio and
performance of commercial and services companies listed in NSE, Kenya. The target population
was the nine commercial and services companies listed in Nairobi Securities Exchange. The
study used secondary data, mostly from NSE handbooks from 2003-2013 and the data was
analyzed using SAS. The data was analyzed using descriptive statistics, correlation analysis, and
panel multiple regression analysis. Presentation of the analyzed data was through figures and
frequency Tables. From the findings of the study, increased financial leverage has a negative
effect on performance of commercial and services companies listed at the NSE as measured by
their ROE. The study further established that the firms' performance improved when they used
more current liabilities to finance assets. Additionally, the study found that increasing the
proportion of current assets in relation to total assets enhanced performance as measured by both
ROA and ROE. The study therefore recommends that corporate managers should reduce
financial leverage in order to enhance performance
