Macroeconomic Factors, Corporate Governance, Assets Structure, And Firm Value: Nairobi Securities Exchange Kenya

Barine Nkonge Habakkuk; Kariuki Samuel Nduati; Kariuki Peter Wang’ombe

doi:10.36923/economa.v26i1.229

Open Access Article Macroeconomics

Barine Nkonge Habakkuk ⁽¹⁾, Kariuki Samuel Nduati ⁽²⁾, Kariuki Peter Wang’ombe ⁽³⁾

(1) University of Embu, Kenya,

(2) University of Embu, Kenya,

(3) KCA University, Kenya

https://doi.org/10.36923/economa.v26i1.229

Issue
Vol. 26 No. 1 (2023)

Submitted
November 21, 2023

Published
November 21, 2023

Keywords:

macroeconomic factors, corporate governance, asset structure, firm value

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Abstract

The study investigated the moderating effect of macroeconomic factors on the relationship between corporate governance, asset structure, and the value of firms listed at the Nairobi Securities Exchange in Kenya and set within the broader context of global financial markets, where the value of listed firms has declined despite their significant presence, with over 41,000 firms valued at USD 80 trillion. The study used a causal-comparative research methodology, relying on secondary data collected from listed firms on the Nairobi Securities Exchange from 2010 to 2019. Panel data analysis and multiple linear regression were the main methods employed to analyze the data. The study results indicate that macroeconomic factors do not appear to moderate the relationship between corporate governance practices and firm value. However, it is noted that the interaction between asset structure and macroeconomic factors was significant. The paper found that macroeconomic factors do not moderate the relationship between corporate governance and the value of firms listed at the Nairobi Securities Exchange. However, they do have a moderating effect on the relationship between asset structure and firm value in this specific context

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Authors

Barine Nkonge Habakkuk

University of Embu

barinett3@gmail.com (Primary Contact)

Kariuki Samuel Nduati

University of Embu

https://orcid.org/0000-0001-6104-2800

Kariuki Peter Wang’ombe

KCA University

https://orcid.org/0000-0002-3087-1136

Habakkuk , B. N., Nduati, K. S., & Wang’ombe, K. P. (2023). Macroeconomic Factors, Corporate Governance, Assets Structure, And Firm Value: Nairobi Securities Exchange Kenya. Innovation Economics Frontiers, 26(1), 18–31. https://doi.org/10.36923/economa.v26i1.229

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