Effect of Ownership Structure on Corporate Diversification of Listed Firms in Kenya
Purpose - This paper aimed to examine the moderating role of capital structure in the relationship between institutional and foreign ownerships on corporate diversification of listed firms at the Nairobi Securities Exchange, Kenya. Design/Methodology - The target population comprised of all the...
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| Language: | English |
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Seisense
2019-08-01
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| Series: | SEISENSE Journal of Management |
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| Online Access: | https://journal.seisense.com/jom/article/view/194 |
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| author | Peninah Jepkogei Tanui Josephat Cheboi Yegon Ronald Bonuke |
| author_facet | Peninah Jepkogei Tanui Josephat Cheboi Yegon Ronald Bonuke |
| author_sort | Peninah Jepkogei Tanui |
| collection | DOAJ |
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Purpose - This paper aimed to examine the moderating role of capital structure in the relationship between institutional and foreign ownerships on corporate diversification of listed firms at the Nairobi Securities Exchange, Kenya.
Design/Methodology - The target population comprised of all the 65 listed firms at Nairobi Securities Exchange in Kenya. However, the inclusion criteria were based on all firms listed at the NSE from 2003 to 2017.
Findings - Capital structure significantly moderated the relationship between institutional ownership and corporate diversification. However, there was a statistically insignificant moderating effect of capital structure in the relationship between foreign ownership and corporate diversification.
Practical Implications - As to increase diversification, listed firms are suggested to have low levels of capital structure and institutional ownership. Furthermore, low levels of foreign ownership and high capital structure is vital in attaining high diversification levels.
Originality - The study contribution is the moderating effect of capital structure in institutional ownership - corporate diversification linkage.
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| format | Article |
| id | doaj-art-33b3e87d5a3f4701974e4eee0cb2c707 |
| institution | OA Journals |
| issn | 2617-5770 |
| language | English |
| publishDate | 2019-08-01 |
| publisher | Seisense |
| record_format | Article |
| series | SEISENSE Journal of Management |
| spelling | doaj-art-33b3e87d5a3f4701974e4eee0cb2c7072025-08-20T02:23:56ZengSeisenseSEISENSE Journal of Management2617-57702019-08-012510.33215/sjom.v2i5.194Effect of Ownership Structure on Corporate Diversification of Listed Firms in KenyaPeninah Jepkogei Tanui0https://orcid.org/0000-0002-9615-704XJosephat Cheboi Yegon1Ronald Bonuke2Moi University, KenyaMoi university, KenyaMoi university, Kenya Purpose - This paper aimed to examine the moderating role of capital structure in the relationship between institutional and foreign ownerships on corporate diversification of listed firms at the Nairobi Securities Exchange, Kenya. Design/Methodology - The target population comprised of all the 65 listed firms at Nairobi Securities Exchange in Kenya. However, the inclusion criteria were based on all firms listed at the NSE from 2003 to 2017. Findings - Capital structure significantly moderated the relationship between institutional ownership and corporate diversification. However, there was a statistically insignificant moderating effect of capital structure in the relationship between foreign ownership and corporate diversification. Practical Implications - As to increase diversification, listed firms are suggested to have low levels of capital structure and institutional ownership. Furthermore, low levels of foreign ownership and high capital structure is vital in attaining high diversification levels. Originality - The study contribution is the moderating effect of capital structure in institutional ownership - corporate diversification linkage. https://journal.seisense.com/jom/article/view/194Ownership StructureInstitutional OwnershipForeign OwnershipCapital StructureCorporate Diversification |
| spellingShingle | Peninah Jepkogei Tanui Josephat Cheboi Yegon Ronald Bonuke Effect of Ownership Structure on Corporate Diversification of Listed Firms in Kenya SEISENSE Journal of Management Ownership Structure Institutional Ownership Foreign Ownership Capital Structure Corporate Diversification |
| title | Effect of Ownership Structure on Corporate Diversification of Listed Firms in Kenya |
| title_full | Effect of Ownership Structure on Corporate Diversification of Listed Firms in Kenya |
| title_fullStr | Effect of Ownership Structure on Corporate Diversification of Listed Firms in Kenya |
| title_full_unstemmed | Effect of Ownership Structure on Corporate Diversification of Listed Firms in Kenya |
| title_short | Effect of Ownership Structure on Corporate Diversification of Listed Firms in Kenya |
| title_sort | effect of ownership structure on corporate diversification of listed firms in kenya |
| topic | Ownership Structure Institutional Ownership Foreign Ownership Capital Structure Corporate Diversification |
| url | https://journal.seisense.com/jom/article/view/194 |
| work_keys_str_mv | AT peninahjepkogeitanui effectofownershipstructureoncorporatediversificationoflistedfirmsinkenya AT josephatcheboiyegon effectofownershipstructureoncorporatediversificationoflistedfirmsinkenya AT ronaldbonuke effectofownershipstructureoncorporatediversificationoflistedfirmsinkenya |