The effect of manager characteristics on the capital structures of firms listed at the Nairobi securities exchange
Managers are at the helm of leadership in any organization. Their values, behaviors skills, and all aspects related to temperament and intellectual ability will ultimately influence the approach they will take in decision making. One of the important indicators of an organization performance is its capital structure. Different managers have different characteristics which contribute to firm’s financial option. This study therefore sought to establish the effect of manager characteristics on capital structure of firms listed in the Nairobi securities exchange. The study adopted across sectional and explanatory study design. The study targeted the 61 companies listed in the Nairobi securities exchange. Secondary data was collected from different organizations from the years 2008-2013. Descriptive statistics was used to taste the normality of the data collected. Data analysis was done using the statistical package for social sciences. The study concluded that there was a significant relationship between the age of the CEOs and the performance of the firm. The study concluded that the CEOs need to be of a mature age as they are tasked with making important decisions. The study also concluded that there was no significant relationship between the gender of the respondents and the performance of the firm although the majority of the CEOs are male. The study also concluded that there was no significant between the level of education of the CEOs and the firms listed at the NSE. The study concluded that the majority of the CEOs at the firms listed at the NSE have master’s degrees. The study recommended that more female CEOs be appointed as it will promote gender equality in management. The study also recommended that organizations facilitate for their CEOs to attend trainings that will equip them with relevant skills in management.