Relationship Between Capital Structure and Financial Performance of Investment Companies Listed at the Nairobi Securities Exchange
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Date
2018Author
Karanja, Dennis; M
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
The examination attempted to take a gander at the association between capital structure
and cash related execution of venture associations cited at the Nairobi securities trade.
To accomplish this, the investigation concentrated on the accompanying explicit
destinations; to decide the impact of obligation on money related execution among
recorded venture organizations in Kenya; to establish the effect of equity, share capital
on financial performance among the listed investment companies in Kenya; and to
examine the effect of debt-equity ratio on financial performance among the listed
investment companies in Kenya. The examination focused on the five (5) investment
organizations quoted at NSE which are; Centum Investment, Olympia Capital
Holdings, Trans Century Ltd, Home Afrika and Kurwitu Ventures. Applying
phenomenological approach, the study accumulated profound data and recognitions
through inductive, subjective strategies. This was achieved by gathering secondary
information from published financial reports for the period between 2011- 2017. Data
was analysed and summarized utilizing engaging measurements and relapse
investigation. Association examination was used to choose the association between
capital structure and the cash related execution of theory associations recorded at the
NSE. The examination uncovered that there was variation of monetary execution of
venture organizations recorded in the NSE because of variations in obligation value
proportion, obligation financing, and value share capital. The investigation found a
positive connection between obligation value proportion of speculation organizations
recorded in the NSE and budgetary execution of venture organizations recorded in the
NSE. The investigation found that the coefficients of the obligation value proportion
were a sure sign that a unit change paying off debtors’ value proportion would prompt
an expansion in monetary execution of the venture organizations recorded in the NSE.
The study recommends that it is basic for the administration of the Investment firms
when trying to support the association's resources to comprehend the effect of capital
structure on their association's monetary execution and also the expense of assets.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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