dc.contributor.author | Wambugu, Charles | |
dc.date.accessioned | 2013-05-15T12:12:28Z | |
dc.date.available | 2013-05-15T12:12:28Z | |
dc.date.issued | 2009-10 | |
dc.identifier.citation | Masters Of Business Administration (MBA) Degree | en |
dc.identifier.uri | http://erepository.uonbi.ac.ke:8080/xmlui/handle/123456789/23202 | |
dc.description | A management research project submitted in partial
fulfilment of the requirements for the Degree Of
Master of Business Administration (MBA), Faculty of
Commerce, University of Nairobi | en |
dc.description.abstract | The capital-structure decision is one of the most fundamental issues in finance.
Numerous studies have been conducted to test the two major competing theories of
capital structure that is, the Trade-Off Theory and Pecking-Order Theory, yet none of
these studies has analyzed the capital-structure decisions of firms quoted in the NSE
overtime,
This study's aim is to determine the factors determining the capital structure of firms
quoted in the NSE and to specifically investigate the determinants of a time-varying
optimal capital structure. The study takes a longitudinal perspective and therefore uses
dynamic panel data to realize its objectives. The research further gives findings based on
static models. Chapter one is an introduction of the project as whole. Chapter two is
literature review, from the books, research projects and the internet on what is perceived
to be the determinants of an optimal capital structure. Chapter three expounds on the
methodology used. Chapter four provides an exposition of the data analysis and findings
while, chapter five gives the conclusions and suggestions for further research.
The major finding of this research is that theory may not be used to explain the
determinants of a time-varying optimal capital structure of companies listed in the NSE.
This is attributed to the peculiarities of an under-developed financial market such as the
NSE. It finds slow adjustments towards an optimal capital structure possibly due to high
costs of adjustments. The study concludes by recommending a study aimed at
determining what factors may be in play in the determination of an optimal capital
structure of firms quoted in the NSE and which are not explained by theory. | en |
dc.language.iso | en | en |
dc.publisher | University of Nairobi | en |
dc.title | A study of the dynamic determinants of capital structure of companies listed in the Nairobi Stock Exchange | en |
local.publisher | School of Business | en |