Corporate Governance, Investment Incentives, Economic Growth and Enterprise Value among County Revolving Loan Funds in Kenya

Seth O. Giriago, Joshua O. Wanjare and Nixon O. Omoro

Journal of Finance and Investment Analysis, 2026, vol. 15, issue 2, 3

Abstract: Abstract Despite the remarkable documentation on investment incentives, empirical revelations underscore lack of research on their fair values. The realization of this gap motivated the current study to question the influence of corporate governance, investment incentives and economic growth on enterprise value among county revolving loan funds in Kenya. The specific objectives explored the direct effect of corporate governance on enterprise vale, the mediated and moderated effect through investment incentives and economic growth respectively. It also looked into the joint relationship among the variables. The study employed quasi-longitudinal approach and collected secondary data for 2019 to 2024 from 31 selected county revolving loan funds in Kenya. Linear regressions were done to test the study hypotheses. The findings indicated that, corporate governance had a strong positive relationship with enterprise value. They also disclosed investment incentives’ partial mediation effect on corporate governance and enterprise value. They further revealed economic growth’s conditional and positive moderating influence on the relationship between corporate governance and enterprise value. Finally, the study confirmed that corporate governance, investment incentives and economic growth had a joint influence on enterprise value. The study distinguishes financial mechanism as the most fundamental determinant for fair value for the county revolving loan funds.

Keywords: Corporate governance; Investment incentives; Enterprise value; Realism. (search for similar items in EconPapers)
Date: 2026
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