Influence of Corporate Control on Capital Structure for Companies Listed at the Nairobi Securities Exchange

David Onguka, Eramus S. Kaijage, Cyrus M. Iraya and Sifunjo E. Kisaka

International Journal of Economics and Finance, 2019, vol. 11, issue 2, 68-80

Abstract: This study aimed at determining the impact of corporate control on capital structure of Nairobi Securities listed firms. Capital structure decision contribute significantly to creating and growing firm’s value and wealth maximization for shareholders while corporate control is believed to be key influencer of the quality of such decision. The paper tested the hypothesis that there is no significant influence of corporate control on capital structure. Trade-off theory is the anchoring theory. Regression analysis and correlation analysis were applied to test the hypotheses. The key study variables of the listed companies were subjected to descriptive statistics and the results revealed a significant positive linkage between the variables. The findings were in line with previous research findings and also provided further insight on the impact of self-determining variable, corporate control on the capital structure. The study has also applied important mechanism in CCI to study the influence of corporate control on capital structure which has provided new insight on the relationship thereby enriching the result.

Keywords: corporate control; agency theory; trade-off theory; capital structure (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:ibn:ijefaa:v:11:y:2019:i:2:p:68-80

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