Abstract:
The study was aimed at examining the effect of management reporting on the financial
performance of manufacturing companies (MCs) in Thika. The specific objectives are to
determine the effects of budgeting, costing system and strategic analysis (the independent
variables) on the financial performance of manufacturing companies in Thika. This study
discussed contingency theory which states that implementation and use of management reporting
technique depends on contingent factors like environment, technology, size and structure of
strategy, strategic mission and national culture, and new institutional sociology theory which
states that institutionalized organizations tend to adopt structures and procedures that are valued
in their social and cultural envirorunent. The target population for this study was 5
manufacturing companies where a sample size of 5 manufacturing companies was selected using
convenience sampling method. The study collected primary data using questionnaire where the
data was both qualitative and quantitative. The data was analyzed using Statistical Package for
Social Sciences (SPSS), allowing the researcher to present information in form of tables and
figures.
