DOES CAPITAL STRUCTURE HAVE A MEDIATION EFFECT ON OWNERSHIP STRUCTURE AND FINANCIAL CORPORATE PERFORMANCE? EVIDENCE FROM KENYA

The objective of this paper was to determine the mediating effect of capital structure on the relationship between ownership structure and financial performance of non-financial firms listed on the NSE. The target population was forty-two firms; however, only thirty-five firms had consistency of data for a balanced panel regression for the period 2008-2017. The study adopted longitudinal quantitative research design with random-effects GLS and fixed effects models. The ownership structure was measured using managerial, institutional, government and retail ownerships while capital structure was measured using leverage ratio. In addition, financial performance was proxed by ROCE and Tobin’s Q. The analysis revealed that the capital structure has no significant mediating influence on managerial, government, and retail ownerships and financial performance. However, the study confirmed that there is a significant partial mediating effect of capital structure on the relationship between institutional ownership and quoted firm’s financial performance. The study recommends that the government should introduce initiatives that are aimed at attracting more investors since the current market is dominated by institutional investors. Finally, the study confirms stakeholders, stewardship and pecking order theories and rebuts capital structure irrelevancy and agency theories. JEL: D24, O16, O16  Article visualizations

Share price reaction to cash dividend announcement: an event study of listed firms in Kenya

This study aimed to establish the effect of cash dividend announcement on share price reaction of the firms listed on the Nairobi Securities Exchange (NSE). This study used Event Study methodology with purely secondary drawn data from 24 firms listed on the NSE who meet the study threshold with an event window of eleven (11) days during the year 2008-2013. The study adopted the descriptive research design and sampling de-sign being purposive. STATA version SE12 was used to produce a descriptive analysis. The findings indicate that the share price reaction to dividend announcement is positive for a dividend increase and negative for dividend decrease and constant for the constant dividend. The study therefore recommends that the effect of the dividend on the firm’s share price is very crucial for not only the literature but also for the regulation and supervision of the capital market and that further development of accounting standards, increased auditing skills, and advances in investor education will likely make dividends even more important in the future. Following these findings, it would be useful to also consider the following directions for future research on whether there is any joint effect of cash dividend, bonus issues, and right issues on the share price of firms listed on NSE

INFLUENCE OF PROJECT MANAGEMENT PRACTICES ON SUSTAINABILITY OF FUNDED URBAN BASED HOUSING PROJECTS IN KENYA

The aim of the paper was to evaluate the effect of project management practices on the sustainability of urban based housing projects in Kenya. In the past few decades multiple studies of the project management practices were conducted. Despite increasing attempts to tackle the problem of project sustainability, however, many projects still fail to maintain the flow of expected benefits over their intended lifetimes. This research study relied on two theories: The Stakeholders theory and control theory. The study design was descriptive for determining the data features of the study variables. The target population was 203 respondents. Data from respondents were collected through a questionnaire and the primary data collected were quantitatively analyzed by the Microsoft Excel and SPSS V20. In addition, tables were used to present the findings. The analysis from the correlation showed a moderate insignificant positive correlation of 0.578 with a 0.05 level of significance between stakeholder involvement and the sustainability. However, there was a weak positive insignificant connection between project sustainability and project M&E. The study regression analysis showed that the most influential factor was project M&E with a regression co-efficient of 0.164 and 0.016 for stakeholder’s involvement which were all significant at 5%. The study recommends that the projects should promote support by the main actors and beneficiaries, as well as tracking and reporting on the progress as this would enhance the survival of the project following completion. The study lastly identified certain areas for further research, such as a study on other project management practices for example change management, risk management, project design and communication and their influence on project sustainability in Kenya or any other country. 该文件的目的是评估项目管理实践对肯尼亚城市住房项目可持续性的影响。在过去的几十年里，对项目管理实践进行了多项研究。然而，尽管解决项目可持续性问题的尝试越来越多，但许多项目仍未能在预期寿命期内保持预期收益的流动。这项研究依赖于两个理论：利益相关者理论和控制理论。研究设计对于确定研究变量的数据特征是描述性的。目标人群为203名受访者。通过问卷收集受访者的数据，并通过Microsoft Excel和SPSS V20对收集的主要数据进行定量分析。此外，表格用于展示研究结果。相关性分析显示，在利益相关者参与和可持续性之间存在0.578的中等微不足正相关与0.05水平的显着性。然而，项目可持续性与项目监测与评估之间存在微弱的积极微弱联系。研究回归分析显示，影响最大的因素是项目监测和评估，利益相关者参与的回归系数为0.164和0.016，均为5％。该研究报告建议，这些项目应促进主要行动者和受益者的支持，以及跟踪和报告进展情况，因为这将提高项目完成后的生存。该研究最后确定了进一步研究的某些领域，例如关于其他项目管理实践的研究，例如变更管理，风险管理，项目设计和沟通及其对肯尼亚或任何其他国家项目可持续性的影响。 El objetivo del documento era evaluar el efecto de las prácticas de gestión de proyectos sobre la sostenibilidad de los proyectos de vivienda urbana en Kenia. En las últimas décadas se llevaron a cabo múltiples estudios sobre las prácticas de gestión de proyectos. Sin embargo, a pesar de los intentos crecientes de abordar el problema de la sostenibilidad del proyecto, muchos proyectos aún no logran mantener el flujo de los beneficios esperados durante sus vidas previstas. Este estudio de investigación se basó en dos teorías: la teoría de las partes interesadas y la teoría del control. El diseño del estudio fue descriptivo para determinar las características de los datos de las variables del estudio. La población objetivo fue de 203 encuestados. Los datos de los encuestados se recopilaron a través de un cuestionario y los datos primarios recopilados se analizaron cuantitativamente mediante Microsoft Excel y SPSS V20. Además, se utilizaron tablas para presentar los hallazgos. El análisis de la correlación mostró una moderada correlación positiva insignificante de 0.578 con un nivel de significancia de 0.05 entre la participación de las partes interesadas y la sostenibilidad. Sin embargo, hubo una conexión negativa débil e insignificante entre la sostenibilidad del proyecto y el SyE del proyecto. El análisis de regresión del estudio mostró que el factor más influyente fue el M&E del proyecto con un coeficiente de regresión de 0.164 y 0.016 para la participación de los interesados, todos significativos al 5%. El estudio recomienda que los proyectos promuevan el apoyo de los principales actores y beneficiarios, así como el seguimiento y la presentación de informes sobre el progreso, ya que esto mejoraría la supervivencia del proyecto una vez finalizado. Por último, el estudio identificó ciertas áreas para futuras investigaciones, como un estudio sobre otras prácticas de gestión de proyectos, por ejemplo, gestión de cambios, gestión de riesgos, diseño y comunicación de proyectos y su influencia en la sostenibilidad de proyectos en Kenia o en cualquier otro país.  Article visualizations