The Value Of Corporate Parenting To Multinational Companies Listed In Nairobi Securities Exchange
Muriithi, Charles E M
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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.