INFLUENCE OF NON-FINANCIAL INFORMATION IN THE EVALUATION OF BUSINESS DISTRESS IN A CASE STUDY OF EAST AFRICAN PACKAGING INDUSTRIES LTD IN NAIROBI.

Abstract

The purpose of this study was to investigate whether non-financial information matters in evaluation of business distress with a keen observation at EAPI industries in Nairobi County. This study was grounded on three objectives, which were to find out the influence of non-financial information in evaluation of business distress.

The study adopted a mixed research design. The study target population comprised of 83 EAPI staff members and 168 major customers. Questionnaires, surveys and Interviews instruments were used to collect data. This data was analyzed using qualitative and quantitative statistics. The difference in the level of influence on evaluation of business distress was presented. All these information was presented using tables, graphs and pie chart.

This research sought to examine the relationship between non-financial information Incorporation with financial metrics, the effectiveness and the impact on evaluation Of business distress. The research shows minimum involvement. The results show that the EAPI does not acknowledge the impact of non-financial information in their evaluation which makes them lose out and fail to mitigate their uncertain financial future health.

The study further revealed that to a greater extent, the firm depend mostly on financial Information in their firm appraisal. This therefore, deter the organization a clear ground For their financial health. This integration helps drill down on the stability of the firm with help of this information.