1. THE RELATIONSHIP BETWEEN STRATEGIC MANAGEMENT ACCOUNTING AND
PERFORMANCE OF COMPANIES LISTED IN THE NSE
BY
D33/33602/2011
D33/33681/2011
D33/30234/2011
D33/34530/2010
A MANAGEMENT RESEARCH PAPER SUBMITTED IN PARTIAL FULFILMENT OF
THE REQUIREMENT FOR THE AWARD OF
THE DEGREE OF BACHELOR OF COMMERCE,
UNIVERSITY OF NAIROBI
FEBRUARY, 2014.
DECLARATION
We declare that this management research paper is our original work and has never been
presented for a degree in any other university or institution of higher learning.

2. NAME SIGNATURE DATE
HASSAN ABDOW D33/30234/2011 …................... ………………
WAIRIMU THUKU D33/33602/2011 ……………… ………………
JOAN OTSWOLI D33/33681/2011 ……………… ………………
JOSEPH MWAWASI NYANGALA D33/34530/2010 …...................
………………
APPROVAL
This Management Research Paper has been submitted with my approval as the university
supervisor.
SIGNATURE…………………… DATE …………………………………
MR. KENNEDY OKIRO
Lecturer
Department of Finance and Accounting

3. DEDICATION
We dedicate this research paper to the Almighty God for the strength, courage and wisdom
throughout the course. We wish to express our sincere gratitude to our supervisor, Mr. Kennedy
Okiro for the guidance and support during this research.
We wish to express a word of gratitude to our families, guardians and friends for their support to
successfully carry on with the course. We cannot forget to express our appreciation to ourselves
for the co-operation, hard work and motivation during this research.

4. ACKNOWLEDGEMENT
The completion of this research paper was dependant on the contribution from several people
whom we would like to show our appreciation.
We would like to thank the Almighty God for the opportunity He gave us and the grace that
sustained us since the start of our University education to the completion of this project.
We acknowledge and appreciate our supervisor, Mr.Okiro for his brilliant ideas, intellectual
advice and valuable support as he was instructive in the crafting and the successful completion of
this paper.
We thank our families for their love, support and encouragement throughout the degree
programme. Their continued generosity and financial support guaranteed the successful
completion of this paper.
We wish to recognize the efforts of our lecturers, classmates and friends for their contribution
and encouragement during this research and for helping us throughout our university life.
Finally we thank the management and the staff of the Jomo Kenyatta Memorial Library (JKML),
Mwai Kibaki Library, Vision institute of Professionals library and the respondents for assisting
and facilitating in gathering of information and data that we needed for research to be successful.

5. ABSTRACT
SMA has been a subject of discussion over and over on its contribution to the improving
performance in companies among researchers, capital providers, stakeholders and finance and
accounting specialists. Therefore this study shows the relationship between SMA and
performance of companies listed in the NSE from data that has been collected from the firm’s
SMA practices and data from year 2005 to 2012 and established through regression study if a
change in one variable causes a change in the other.
Therefore from the results of the study, it shows that SMA has a positive relationship to
performance in the companies listed in the NSE based on improving performance in the
companies over the years. From this study, firms could benefit fully from SMA by conducting a
feasibility study on the SMA techniques that are best likely to work for their particular firms.
This could in turn achieve better performance as firms would be better informed on what
techniques would help them perform better and give them a competitive edge over their
competitors.
Results from the study suggest that SMA is a major element in explaining company performance
due to the positive relationship, despite the existence of other factors.