School of Business
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Item The Effect Of Board Characteristics On Firm Value Of Listed Banks In Kenya(KCA University, 2022) Heraniah, Nicholas O.Primarily, the role of governing boards is to oversight and also support management in its pursuit of increasing the economic value of the corporation. To achieve these, governing boards require an appropriate structure and this according to research, involves several dimensions. The most highlighted dimensions are diversity and complementarity, while others relate to the number of “inside” vis-à-vis “outside” directors, experience, director’s knowledgeability, and board size. Thus, this study sought to examine the effect of board characteristics on firm value of listed banks at the NSE. Specifically, this research sought to determine if board meetings, board size and board gender diversity have an effect on firm value. The study was based on agency theory, resource-based view theory and resource dependency theory. The study employed correlational research design to attain its objective. The target population for the study was 10 banks listed at the Nairobi Securities Exchange during FY’s 2008 to 2021, 14-year data being collected from secondary sources and analyzed using STATA version 12. The study established that, board gender had a positive but insignificant relationship with firm value as proxied by Tobin’s Q, while board size had a positive and significant relationship with firm value, whereas board meetings had a negative and insignificant relationship with firm value.Item The Influence Of Financial Flexibility On Firm Value Of Non-financial Companies Listed At The Nairobi Securities Exchange In Kenya(Scholars Middle East Publishers, Dubai, United Arab Emirates, 2023) Maina, Peter N; Ogutu, Victor OThe purpose of this study aimed to examine the influence of financial flexibility on the firm value of listed non-financial corporations at the NSE in Kenya from the period 2011 to 2019. Specifically, this study examined the influence of cash holdings; debt capacity; and financing cost restrictions on firms’ value of listed non-financial companies quoted at the NSE. The study further examined the moderating role played by firm size in the association between financial flexibility and firm value of non-finance companies quoted at the NSE in Kenya. The study was underpinned by the free cash flow theory, the trade-off theory and the pecking-order theory. The study adopted a descriptive longitudinal research design and focussed on all the 37 non-financial listed at the NSE as of December 31, 2020. However, firms that were financially distressed as of the time of data collection did not form part of the study. As a result, only 31 firms with 272 firm-year observations formed part of the study. The study utilized panel data that was analysed using panel multiple regression analysis and aided by the STATA statistical package. To ensure the non-violation of statistical assumption and to allow for remedial action when a violation occurred, diagnostic tests were carried out. Hausman specification test results favoured the use of the random-effects model.