Capital Structure, Firm Efficiency and Firm Value: The Case of Listed Non-Financial Firms in Kenya

This study examined the influence of a firm’s efficiency on the relationship between capital structure and firm value. The study analyzed thirty non – financial firms listed at the Nairobi Securities Exchange for a period of six years from   2008 to 2013.Capital structure was parameterized as the ratio of retained earnings to total capital, ratio of debt to total capital and ratio of equity to total capital of the firm. Efficiency is measured as the distance from the best practice frontier in the industry. The firm’s efficiency is measured by operational efficiency, cost efficiency and profit efficiency. Firm value is measured by its inputs and outputs. The inputs to the firms production are financing costs (FINC), distribution costs (DISTC), tax liability (TAX), and administrative expenses (ADEXP). The outputs are earnings per share(EPS)and the share price (SP).This study applied panel data analysis using fixed effects model. The results showed that cost efficiency negatively influences the relationship between capital structure and firm value as measured by the SP through increase in distribution costs, administrative costs in financing efficiency improvements in the firm’s core processes. Further Operating efficiency negatively and statistically significantly affects the relationship between firm value and capital structure through the increase in financing costs, distribution costs, administration costs and taxation costs. The results showed that profit efficiency negatively and insignificantly influences the relationship between capital structure and firm value as measured by the SP. Consequently it has a positive but statistically insignificant effect on financing costs, distribution costs, administrative costs and taxation costs. Moreover, capital structure has a positive and statistically significant effect on firm value but firm efficiency insignificantly influences the relationship between capital structure and firm value. This study does not investigate the reverse relationship like Margaritis and Psillaki (2007). Keywords: Capital Structure, Firm Efficiency, Firm Value, Listed Non-Financial Firms, Nairobi Securities Exchang

ANTIINFLAMMATORY PROPERTIES OF DICHLOROMETHANE: METHANOLIC LEAF EXTRACTS OF CAESALPINIA VOLKENSII AND MAYTENUS OBSCURA IN ANIMAL MODELS

Objective: Inflammation is the reaction to injury of the living tissues. Conventional medication of inflammation is expensive and arguably associated with various severe adverse effects hence the need to develop herbal agents that are effective as alternative. Caesalpinia volkensii and Maytenus obscura are plants that grow in Mbeere County of Eastern region of Kenya. This study was designed to evaluate the anti-inflammatory activity of C. volkensii and M. obscura plants. Methods: Experimental animals were divided in to four groups; normal group, diseased negative control group, diseased reference group and diseased experimental groups. Inflammation was inducted into the mice using carrageenan. The experimental groups were treated with leaf extracts of the plants at concentration of 50 mg/kg, 100 mg/kg and 150 mg/kg. Anti-inflammatory activities in rats were compared with diclofenac (15 mg/kg) as the standard conventional drug. Results: The leaf extracts of C. volkensii reduced the paw edema by between 6.50%-13.42% while the extracts of M. obscura reduced it by between 4.94%-22.36%. Diclofenac reduced the paw edema by between 4.11%-10.47%. Conclusion: The phytochemical screening results showed that the extracts of C. volkensii had flavonoids, steroids and phenolics while the leaf extracts M. obscura had phenolics, terpenoids and saponins. Flavonoids, saponins and phenolics have been associated with anti-inflammatory activities. Therefore, the study has established that the DCM: methanolic leaf extracts of Caesalpinia volkensii and Maytenus obscura are effective in management of inflammation

Biomarker-confirmed suboptimal adherence to isoniazid preventive therapy among children with HIV in western Kenya

Objectives:The aim of this study was to assess the level and correlates of biomarker-confirmed adherence to isoniazid (INH) preventive therapy (IPT) among children with HIV (CLHIV).Design:This prospective cohort study assessed adherence among CLHIV on IPT in public sector HIV clinics from 2019 through 2020.Methods:Adherence was assessed by pill counts or caregiver or self-reports, and urine biomarkers (in-house dipstick and Isoscreen). Both urine biomarker tests detect INH metabolites within 48 h of ingestion. Consistent adherence was defined as having positive results on either biomarker at all visits. Correlates of biomarker-confirmed nonadherence at each visit were evaluated using generalized estimating equations. The in-house dipstick was validated using Isoscreen as the reference.Results:Among 97 CLHIV on IPT with adherence assessments, median age was 10 years (IQR 7-13). All were on ART at IPT initiation (median duration 46 months [IQR 4-89]); 81% were virally suppressed (<1000 copies/ml). At all visits, 59% (n = 57) of CLHIV reported taking at least 80% of their doses, while 39% (n = 38) had biomarker-confirmed adherence. Viral nonsuppression (adjusted risk ratio [aRR] = 1.65; 95% confidence interval [95% CI] 1.09-2.49) and the sixth month of IPT use (aRR = 2.49; 95% CI 1.34-4.65) were independent correlates of biomarker-confirmed nonadherence at each visit. Sensitivity and specificity of the in-house dipstick were 98.1% (94.7-99.6%) and 94.7% (88.1-98.3%), respectively, versus Isoscreen.Conclusion:Biomarker-confirmed adherence to IPT was sub-optimal and was associated with viral nonsuppression and duration of IPT. Urine dipstick testing may be useful in assessing adherence to IPT in clinical care