Open access Articles CC BY-NC 4.0 November 21, 2023

Open Access Article Economics

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

Authors

Authors: Barine Nkonge Habakkuk 1,*, Kariuki Samuel Nduati2 , Kariuki Peter Wang’ombe3

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  2. University of Embu image/svg+xml
  3. KCA University image/svg+xml
  4. * Author to whom correspondence should be addressed.

Publication: Innovation Economics Frontiers, Vol. 26 No. 1 (2023), pp. 11-19 https://doi.org/10.36923/economa.v26i1.229

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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

Article information

Keywords
macroeconomic factorscorporate governanceasset structurefirm value
Section
Articles
Issue
Vol. 26 No. 1 (2023)
Pages
11-19
Submitted
November 21, 2023
Published
November 21, 2023
Corresponding author
Barine Nkonge Habakkuk
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