Purpose: The study tested the hypothesis about the relationship between corporate diversification and financial performance. Moreover, moderating effect of firm size on the relationship between corporate diversification and financial performance of listed firms at Nairobi securities exchange (NSE) in Kenya was tested. Methodology/Approach/Design: The study was informed by market power and resource-based view (RBV) theories. To test the hypotheses, secondary panel data were collected from 35 listed firms at NSE from 2003 to 2017. Results: From panel regression analysis output, there was a significant positive (β = 2.225, p value = .000 < .05) relationship between corporate diversification and financial performance. Furthermore, firm size had a negative and significant (β = -.155, p value = .031<.05) moderating effect in the relationship between corporate diversification and financial performance. Practical Implications: The study thus concluded that firm size had a buffering effect in the link between corporate diversification and the financial performance of listed firms in Kenya. The findings of the study could be relevant to policymakers in drafting policies that affect diversification strategies of firms. For further research, the study recommended an increase of scope, other measurement approaches, analysis of corporate diversification from different perspectives other than product, and controlling for board characteristics. Originality/Value: The study while controlling the age of the firm tested the moderation effect of firm size in the relationship between corporate diversification and financial performance.
Purpose - This paper aimed to examine the moderating role of capital structure in the relationship between institutional and foreign ownerships on corporate diversification of listed firms at the Nairobi Securities Exchange, Kenya. Design/Methodology - The target population comprised of all the 65 listed firms at Nairobi Securities Exchange in Kenya. However, the inclusion criteria were based on all firms listed at the NSE from 2003 to 2017. Findings - Capital structure significantly moderated the relationship between institutional ownership and corporate diversification. However, there was a statistically insignificant moderating effect of capital structure in the relationship between foreign ownership and corporate diversification. Practical Implications - As to increase diversification, listed firms are suggested to have low levels of capital structure and institutional ownership. Furthermore, low levels of foreign ownership and high capital structure is vital in attaining high diversification levels. Originality - The study contribution is the moderating effect of capital structure in institutional ownership - corporate diversification linkage.
Most firms in this day and age seek to report issues affecting assorted stakeholders. Consequently, sustainability revelation endorses all-inclusive rather than economic performance analysis of the organization. The study sought after the interaction effect of board gender diversity in the relationship between ownership structure and corporate sustainability disclosure of listed companies in Kenya. The theoretical framework was made of legitimacy, triple bottom line and stakeholder theories. Guided by causal research design, 62 listed companies were targeted but 56 were included after inclusion and exclusion criteria. . Secondary data obtained from audited annual reports for the year 2021 was analyzed using SPSS. From the multiple regression analysis, there was a negative but significant effect (β= -.246, .001<.05) of managerial ownership on corporate sustainability disclosure. On the contrary, both institutional and foreign ownership positively but insignificantly affect corporate sustainability disclosure as indicated by (β=.423, .816>.05) and (β=.356, .559>.05) respectively. Furthermore, board gender diversity positively and significantly moderates the relationship between managerial (β=.277, .001<.05) along with institutional ownership (β=.343, .000<.05) and corporate sustainability disclosure. To sum up, sustainability disclosure of the firm is vital for institutional and foreign more than managerial investors. From the findings, board gender diversity enriches sustainability disclosure once interacted with managerial and institutional ownership structure. The management of the listed companies in Kenya are expected to uphold ownership structure by attracting investors, both individuals and institutions. More importantly, the companies are expected to formulate ways of promoting women representation in the board so as to progress the gender diversity concept.
The inability of commercial banks to attain sustainable competitive advantage that can be defended over time and that which competitors are unable to imitate have exposed banks to survival challenges in their operating environment. The purpose of this study was to analyze the interaction effect of organizational justice on the relationship between talent management practices and perceived sustainable competitive advantage of commercial banks in Nairobi County in Kenya. The research was anchored on the resource based view theory, positivism research approach and explanatory research design. Additionally, 5-point Likert scale structured questionnaires were employed in collecting data from a sample size of 354 given the 42 commercial banks with a target population of 3,098 employees. Given the moderation model by Hayes (2012), multiple regression analysis was used to test the hypothesis at a .05 significance level. The results showed that organizational justice moderated the relationship between talent management and perceived sustainable competitive advantage (β=.-.066, SE=0.025, p<.05). In the mod graph, it was evident that all the three study variables converged at the apex signifying that within the commercial banks in Nairobi County, talent management practices, and organizational justice forms part of the perceived sustainable competitive advantage. The study concluded that when talent is managed well among the employees, they become more competitive and become a strategic asset. Moreover, with the organizational justice in place, the relationship between talent management practices and perceived competitive advantage is enhanced. As a result, it is critical for bank managers to consider developing and implementing responsible talent management practices a long side organizational justice strategies that promote fairness, transparency, justice, equity, respect, dignity and civility to make employees realize their full potential for sustainable competitive advantage.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
hi@scite.ai
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.