EFFECT OF FINANCIAL REPORTING ON THE ORGANIZATIONAL PERFORMANCE OF PUBLIC CORPORATIONS UNDER THE MINISTRY OF TOURISM IN KENYA

Abstract

State corporations within the Ministry of Tourism in Kenya play an important role in the Kenyan Economy. However, lack of proper financial reporting is one of the issues that easily lead to the misappropriation of the public funds and poor performance of institutions despite improved access to financing. State corporations within the Ministry of Tourism in Kenya have been experiencing poor financial performance in terms of level of unsupported expenditure, revenue generated, value for money, and debt (pending bills). Therefore, this study assesses the effect of financial reporting on the organizational performance of public corporations under the Ministry of Tourism in Kenya. The research used descriptive research design. The unit of analysis was nine state corporations under the Ministry of Tourism in Kenya. The unit of observation comprised of 103 staff working the finance and audit departments of public corporation the Ministry of Tourism in Kenya. Semi-structured questionnaires were used to collect primary data. Pre-testing was carried out to examine reliability and validity of data collection instruments. Qualitative data was analyzed through thematic analysis and results were presented in narrative form. Inferential and descriptive statistics were used to analyze the quantitative data through the aid of statistical package called SPSS version 22. Descriptive statistics entailed the use of mean, standard deviation, frequencies and percentages. Inferential statistics focused on Pearson correlation analysis and multivariate regression analysis. The results were presented in tables and figures. The study established that financial reporting has significant effect on the organizational performance of public corporations under the Ministry of Tourism in Kenya. The study recommends that the public corporations under the Ministry of Tourism should control expenditure, regularly review their budget and have a long-term financial forecast to improve on allocation of fin