School of Business
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Item Dynamic Adjustment Towards Target Capital Structure: Panel Evidence of Listed(Journal of Accounting, Finance and Auditing Studies, 2018) Wanjau, Kenneth L.; Olweny, Tobias; Maina, Leonard K.Trade-off theory of capital structure uses static and dynamic approach. The use of static approach has been prevalent. Despite the importance of dynamic capital structure the debate in Kenya is so far inconclusive. Therefore, to fill this gap, there was ne speed & of adjustment from target capital structure of listed non-financial firms in Kenya. Causal research design was used. The population for this study was 65 listed firms with only 35 non- financial firms sampled due to exclusion of financial sector which has highly regulated capital structure. Dynamic Partial Adjustment model (DPA) was used to estimate target leverage in each industry and the study found out that, there exist a target leverage level which is different from observed lev for each sector. Further, the study showed that, listed firms adjusted to target level with a speed of 51% meaning that, the adjustment costs are relatively low.Item Influence of Alternative Financing on the Relationship between Managerial Competency and Efficiency of Small and Medium Enterprises in Kenya(IJFBS, 2018) Waweru, Jackson Njau; Waweru, Kennedy M.; Wanjau, Kenneth L.; Kinyanjui, Josphat K.Worldwide, Small and medium-size enterprises (SMEs) exhibit inimitable financial needs. While SMEs remain fundamental to economic growth, their mortality rate in Kenya approaches 90% by the second year, mainly owing to lack of credit. However, scholarly endeavors exploring the impact of alternative finance (AF) on managerial competency -efficiency nexus for manufacturing SMEs have received little attention in Kenya. To resolve this conundrum, a thorough study to investigate how AF impacts managerial competency -efficiency nexus is necessary. The study used a cross-sectional research design, employing both qualitative and quantitative research approaches. The target population was 171 SMEs registered with Kenya Association of Manufacturers. The accessible population was 136 SMEs owners/managers. A semi-structured questionnaire was used to collect primary and secondary data. Data envelopment analysis was used to measure efficiency, multiple regression modeling used to analyze the direct relationships while hierarchical moderated multiple regression analysis employed to test moderation. Partial Least Squares Structural Equation Modeling was used to test robustness of our results. The findings of this study demonstrate that managerial competency positively influences efficiency (β = 0.150, t-value =10.246, P<0.05), and that alternative finance does moderate managerial competency relationships with efficiency (R-Square change of 21.7%). We suggest trainings for manufacturing SME owners/managers in Kenya on the pivotal role of alternative finance to facilitate SMEs achieve higher efficiencies and accelerate economic growth.