Purpose The purpose of this study is to examine the effect of board composition on capital structure of a firm. Design/methodology/approach The paper uses data from firms listed in Nairobi Securities Exchange covering the period 2004-2012. Fixed effect regression model was estimated to test the effect of board composition on capital structure and how chief executive officer (CEO) tenure moderates the relationship. Findings The paper finds that board composition has important implications on capital structure decisions. Specifically, director independence is positively related to leverage, whereas CEO duality and tenure have negative and significant effect on leverage. In addition, the interaction effect of CEO tenure indicates that when CEOs have long tenure, the power of independent directors to influence capital structure decisions diminishes. Further, the study found that under long CEO tenure, long-tenure boards use less leverage in their capital structure. As expected, dual CEO with long tenure uses less leverage. Originality/value The study uses data from an emerging market, contrary to previous studies using data from developed markets, to test the relationship between board composition and leverage. Second, the paper tests the moderating effect of CEO tenure on board composition – leverage relationship based on the idea that entrenched CEO may influence the decision-making ability of directors, particularly capital structure decisions.

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Purpose -Although previous studies have attempted to explain why some customers remain loyal to a product or service provider and/or why others switch, few studies have interrogated the role of social pressure as well as the moderating role of corporate image. Methodology -The paper uses a composite measure of customer loyalty which provides both behavioral aspects and attitudinal loyalty. Survey data derived from a sample of 140 users of mobile services in Kenya was used and the hypotheses was tested using moderated regression analysis. Findings -The results indicate that perceived service value, service quality and social pressure were significant predictors of customer loyalty, while customer satisfaction was not significant. Corporate image was found to moderate the relationship between service value, service quality, social pressure and customer loyalty. Research limitations -Even though the study utilized a sample similar to other existing studies, future research should use larger samples, different measures of variables and different contexts. Implications -To improve on customer loyalty, mobile telecommunication firms in Kenya should place more emphasis on the value offered to customers as well as the needs of the social units like family, friends and colleagues. Moreover, telecommunication firms should invest in good corporate image in order to realize the benefits of customer loyalty. Originality/value -The study adds value to the understanding of the determinants of customer loyalty. More importantly, social pressure is an important determinant of customer loyalty. Second, corporate image plays a moderating role in customer behavior. Thus firms eager to engender customer loyalty should invest in corporate image.

We examine the effect of intellectual capital on firms' innovativeness and the moderating role of firm size in software development firms in Kenya. Using moderated regression analysis, we found support for the proposition that human and social capital enhance firms' innovativeness. We did not, however, find any significant effect of organizational capital on firms' innovativeness. The results from the moderated regression suggest that the smaller the firm, the stronger the influence of intellectual capital on firms' innovativeness. The results therefore indicate that human and social capital are critical in the innovation process and so firms that neglect these capitals are unlikely to realize the potential to innovate particularly in software development firms.