The Value of Corporate Parenting to Multinational Companies Listed in Nairobi Securities Exchange
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Date
2013Author
Muriithi, Charles E
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
The study was designed to investigate into the value of corporate parenting to
multinational companies listed in Nairobi Securities Exchange. The study also
focused on establishing the key factors and extent into which they influence corporate
parenting value creation. The methodology that was employed in this study was
purposive sampling was used to select the two managers from the 50 publicly listed
MNC’s in NSE. The data collected was analysed using descriptive statistics and
regression analysis. The researcher findings revealed that corporate parenting has
added value to MNC’s listed in NSE. Most of the subsidiary companies managers are
motivated to achieve their targets. The study revealed that among the key factors
influencing corporate parenting value creation include: budget control, staffing,
capital investment decisions and strategic dialogue. Among the four key factors,
staffing was shown as the one with the highest impact on corporate parenting value
creation. The study recommends that for Multinational corporate parents companies
listed in Nairobi securities exchange to be effective on adding value to its subsidiaries,
the organization should add more powers to the subsidiary managers to enable them
make more decisions which affects their subsequent branches. The study also
recommends that skills and resources of the parent companies should be of high
standard and the same should be reflected on the subsidiary companies.
Publisher
University of Nairobi, School of Business