scholarly journals Evaluation of Monetary Challenges Affecting Operations of Private Tertiary Colleges in Nakuru Town, Kenya

2018 ◽  
Vol 3 (3) ◽  
pp. 67
Author(s):  
A. N. Mugo
Keyword(s):  
Social Sciences ◽  
Research Design ◽  
Target Population ◽  
Order Theory ◽  
Primary Data ◽  
Pecking Order ◽  
Pecking Order Theory ◽  
Descriptive Research ◽  
Entry Points ◽  
The Relationship

Tertiary colleges are the institution in between the secondary and the universities. They are set aside for those students who fail to join universities due to failure of meeting entry points or lack of requisite fees. Most of these institutions are run by private sectors while a small percentage is run by public sectors. Due to various challenges here have been instances of monetary constraints in these institutions. This facilitated this study which hunted to evaluate the monetary challenges affecting operations of the private tertiary colleges. The study sought to establish the access of funds and credit facilities on operations of the aforestated private tertiary colleges. The pecking order theory guided the study. The study was conducted amongst private tertiary colleges in Nakuru town, Kenya. The study adopted descriptive research design with target population of 109 employees of these institutions. A census survey was conducted. The study employed a questionnaire to collect primary data. Data was processed and analyzed with the aid of the Statistical Package for Social Sciences software. Descriptive and inferential analyses were duly conducted. The findings indicated that access of funds and credit facilities affect operations of private tertiary colleges positively and that the relationship between the two constructs is statistically significant (r = 0.665; p < 0.01). The study concluded that the role played by funds and credit facilities in the Operations of private tertiary colleges cannot be understated. It is recommended that the management of private tertiary colleges should devise various sources of funding such as initiating income-generating projects and liaise with corporate entities for sponsorship of needy students. 

Does financing behavior of SME entrepreneurs of Bangladesh follow capital structure theory?-an investigation into Pecking Order Theory

2020 ◽  
pp. 2050037
Author(s):  
Md. Rostam Ali ◽  
Rustom Ali Ahmed ◽  
Rushafa Tasnim Tisha ◽  
Md. Ashikul Islam
Keyword(s):  
Capital Structure ◽  
Information Asymmetry ◽  
Order Theory ◽  
Bank Loan ◽  
Structure Theory ◽  
Primary Data ◽  
Pecking Order ◽  
Pecking Order Theory ◽  
Debt Market ◽  
Capital Structure Theory

This study attempts to investigate whether the financing preferences of small and medium enterprises (SMEs)’ entrepreneurs of Bangladesh follow capital structure theory by investigating into Pecking Order Theory (POT). For this study, cross-sectional primary data have been collected through questionnaire. The answers of the questions have been measured through five points Likert Scale. The scores were analyzed using mean score. To analyze the data, some descriptive statistics have been used. Besides, one sample one tail [Formula: see text]-test has been applied to test the hypotheses. The study finds that the entrepreneurs themselves do not believe that there is an information asymmetry in debt market. But their perception regarding debt market ascertained the presence of the information asymmetry between SME sector (entrepreneurs of SME) and the debt market (banks). The answers of respondents are statistically significant that they want to use the retained profits first, bank loan as second and want to issue external equity (taking partner/s) as a third option among these three alternatives of additional financing. This tendency of the respondents towards financing is consistent with POT. Therefore, Government policy for motivating SMEs to keep formal accounting should be introduced to reduce the information asymmetry in debt market along with taking proper initiatives to increase accessibility of SMEs to institutional credit.

scholarly journals Capital structure and the firm’s life stage

2005 ◽  
Vol 36 (4) ◽  
pp. 9-18 ◽  
Author(s):  
A. Frielinghaus ◽  
B. Mostert ◽  
C. Firer
Keyword(s):  
Pilot Study ◽  
Capital Structure ◽  
Life Stage ◽  
Order Theory ◽  
Life Stages ◽  
Stage Model ◽  
Pecking Order ◽  
Pecking Order Theory ◽  
The Relationship ◽  
Over Time

In this paper we argue the case for a relationship between capital structure and a firm’s life stage. We provide an overview of the two sets of theories and follow this with a proposed linkage between the life stage and capital structure. We use the Adizes life stage model to assess the life stage of the firms in our sample. Our pilot study found a statistically significant relationship between life stage and the capital structure of respondents. The nature of the relationship (more debt in the early and late life stages than in prime) supports the pecking order theory of capital structure and suggests a practical use of the life stage model in helping firms to understand how their financing is likely to change over time.

scholarly journals Determinants of Capital Structure: Empirical Evidence from Turkey

2018 ◽  
Vol 8 (1) ◽  
pp. 31 ◽  
Author(s):  
Merve Gizem Cevheroglu-Acar
Keyword(s):  
Capital Structure ◽  
Order Theory ◽  
Pecking Order ◽  
Pecking Order Theory ◽  
Tax Shield ◽  
Financial Firms ◽  
Independent Variable ◽  
Debt Tax Shield ◽  
The Relationship ◽  
The Capital Structure

The primary aim of this study is to identify the firm-specific determinants of the capital structure of non-financial firms in Turkey and to test whether the determinants offered by financial theory are able to provide convincing explanations for non-financial firms in Turkey. Because the relationship between liquidity and capital structure is not well examined for Turkish market in the context of capital structure theories, we include liquidity as independent variable in our models in addition to profitability, growth, non-debt tax shields, size, tangibility, and risk. We use panel regression as econometric model and cover the period from 2009 to 2016. Our results show that profitability, non-debt tax shield, size, tangibility, and liquidity are significant determinants of the capital structure, size being the most robust one. On the other hand, growth and volatility are not significantly related with the leverage. Moreover, we conclude that capital structure decisions of non-financial firms in Turkey are mostly consistent with the hypothesis of pecking order theory rather than trade-off theory.

scholarly journals Same same, but different: capital structures in single family offices compared with private equity firms

2021 ◽  
Author(s):  
Antonia Schickinger ◽  
Alexandra Bertschi-Michel ◽  
Max P. Leitterstorf ◽  
Nadine Kammerlander
Keyword(s):  
Private Equity ◽  
Order Theory ◽  
Debt Financing ◽  
Single Family ◽  
Firm Age ◽  
Pecking Order ◽  
Pecking Order Theory ◽  
Financial Decisions ◽  
Financing Choices ◽  
The Relationship

AbstractDespite the increasing interest in single family offices (SFOs) as an investment owned by an entrepreneurial family, research on SFOs is still in its infancy. In particular, little is known about the capital structures of SFOs or the roots of SFO heterogeneity regarding financial decisions. By drawing on a hand-collected sample of 104 SFOs and private equity (PE) firms, we compare the financing choices of these two investor types in the context of direct entrepreneurial investments (DEIs). Our data thereby provide empirical evidence that SFOs are less likely to raise debt than PE firms, suggesting that SFOs follow pecking-order theory. Regarding the heterogeneity of the financial decisions of SFOs, our data indicate that the relationship between SFOs and debt financing is reinforced by the idiosyncrasies of entrepreneurial families, such as higher levels of owner management and a higher firm age. Surprisingly, our data do not support a moderating effect for the emphasis placed on socioemotional wealth (SEW).

scholarly journals INFLUENCE OF FINANCIAL CAPABILITIES ON COMPETITIVENESS OF FOOD AND BEVERAGE MANUFACTURING FIRMS IN KENYA

2021 ◽  
Vol 6 (2) ◽  
pp. 25-41
Author(s):  
Edward Maina Muiruri ◽  
Dr. Patrick Karanja Ngugi ◽  
Dr. Allan Kihara
Keyword(s):  
Empirical Studies ◽  
Cash Holdings ◽  
Target Population ◽  
Primary Data ◽  
Unique Contribution ◽  
Foreign Companies ◽  
Descriptive Research ◽  
Bank Deposits ◽  
Food And Beverage ◽  
The Relationship

Purpose: The firms have been facing steep competition from foreign companies due to increased globalization. The aim of the study was to find out the influence of financial capabilities on competitiveness of food and beverage processing companies in Kenya. Methodology: The study was informed by resource based theory. Empirical studies were reviewed to provide the basis for research gaps to be filled by the current study. Descriptive research design was employed while the target population was the 187 food and beverage processing firms in Kenya. A census was used where all the 187 companies were contacted. Structured questionnaire was used to obtain the primary data which was analyzed through mixed method analysis. Descriptive statistics were used to analyze quantitative data while qualitative data was analyzed through content analysis. Inferential statistics were used to analyze the relationship between variables through the regression model. The findings were presented in form of tables, pie-charts and bar-graphs. Results: The companies however mainly relied on bank deposits as the source of funding for their operations. Financial capabilities significantly and positively influence the competitiveness of the food and beverage processing firms. The bank deposits, cash holdings and stock holdings create the financial muscle of the firms by ensuring that they are able to obtain adequate and high quality production inputs thus contributing to the companies’ success. The correlation analysis revealed that there was a positive and significant association between Financial capabilities and firm competitiveness (r = 0.698, p = 0.000). Regression of coefficients results revealed that Financial capabilities and firm competitiveness are positively and significantly related (β =0.638, p=0.000). Unique contribution to theory, practice and policy: The firms ought to seek adequate financial capabilities as a way of effectively financing their operations to gain competitiveness. The companies should embrace accountability and proper investments that increase their bank deposits, cash holdings and stock holdings through which they can sustain their operations towards competitiveness. The companies should embrace accountability and proper investments that increase their bank deposits, cash holdings and stock holdings through which they can sustain their operations towards competitiveness.

scholarly journals THE EFFECT OF INVESTMENT OPPORTUNITY SET ON CORPORATE CAPITAL STURUCTURE

2015 ◽  
Vol 6 (2) ◽  
pp. 119-134
Author(s):  
Moh Rusman Ramli ◽  
Frans Papi Papilaya
Keyword(s):  
Capital Structure ◽  
Secondary Data ◽  
Order Theory ◽  
Pecking Order ◽  
Pecking Order Theory ◽  
Corporate Capital ◽  
Investment Opportunity Set ◽  
Corporate Capital Structure ◽  
Independent Variable ◽  
The Relationship

ABSTRACTInvestment opportunity is the heart of the company's growth is that become important expectation which desired by the internal and external parties of company  such as management, investors and creditors. The purpose of this study was to analyze the significance of the effect of IOS on the capital structure of the company. Object of this study is automotive and component companies and the research span was 2008-2012. The dependent variable of this study is the firm's capital structure, while the independent variable is IOS which consists of 5 single’s proxy. The data used are secondary data from ICMD 2008-2012. The analytical tool used is a simple regression and factor analysis. The results showed that IOS significantly positive effect on capital structure. There are three viable IOS proxy used to form the joint proxy variables IOS that is E / P , MV / BVA and MV / BE. This study confirms that the proxy IOS with combined proxy better than a single proxy . This study also supports the pecking order theory than trade off theory regarding the relationship between IOS corporate capital structure.

scholarly journals INFLUENCE OF SUCCESSION PLANNING PRACTICES ON PERFORMANCE OF KENYA POWER LIMITED COMPANY

2016 ◽  
Vol 1 (1) ◽  
pp. 127
Author(s):  
Ruth Anyango Odengo ◽  
Mr Shadrack Bett
Keyword(s):  
Social Sciences ◽  
Performance Appraisal ◽  
Succession Planning ◽  
Target Population ◽  
Manufacturing Firms ◽  
Primary Data ◽  
Training Performance ◽  
Correlation And Regression Analysis ◽  
Descriptive Research ◽  
Limited Company

Purpose: The general objective of the study was to determine influence of succession planning practices on performance of Kenya Power Limited Company.Methodology: The study adopted a descriptive research design. The target population was 1000 employees of KPLC. The sample size was therefore 100 employees of KPLC. Primary data was collected through the administration of the questionnaires. The raw data obtained from the field was coded, scrutinized and then organized and edited to enhance accuracy and hasten analysis using statistical package for social sciences (SPSS) to produce graphs and tables in descriptive statistics such as frequencies, percentages, means and standard deviation and inferential statistics used both correlation and regression analysis. Correlation was used to find out the variables inter-relation while regression was used to find out the strength between the independent and dependent variable. Simple regression was used to determine whether the specific variables together can predict a given research gap.Results: The findings revealed a positive relationship between the career development, training, performance appraisal, organizational structure and the performance KPLC.Policy recommendation: The study recommended that large manufacturing firms should also invest more in research and development, training, networking and innovation

scholarly journals The Relationship between Capital Structure and Financial Performance of the Company

2021 ◽  
Vol 91 ◽  
pp. 01002
Author(s):  
V.V. Tretiakova ◽  
M.S. Shalneva ◽  
A.S. Lvov
Keyword(s):  
Pharmaceutical Industry ◽  
Capital Structure ◽  
Financial Performance ◽  
Order Theory ◽  
Pecking Order ◽  
Pecking Order Theory ◽  
Market Capitalization ◽  
Negative Effect ◽  
The Impact ◽  
The Relationship

The article examines and analyzes the relationship of key performance indicators (ROA, ROIC, change in market capitalization and price-to-book ratio) and the capital structure of the company based on the pharmaceutical industry in the UK for the 2009-2019 period. The study seeks to provide a practical evidence on the impact of external financing on company’s financial performance and test applicability of the pecking order theory for the chosen companies. The research conducted uses panel data regression and Wald test to determine and analyze the effect of capital structure on the financial indicators of the company performance. The study used a sample of 185 UK companies from the pharmaceutical industry. The result of the research showed that equity has negative effect on price-to-book ratio and ROA and positive effect on change in market capitalization, while long-term debt has a positive relationship with price- to-book ratio and change in market capitalization. In addition, short-term debt has a negative effect on change in market capitalization, ROA and ROIC. The study also provides only partly coincidence of the results with the pecking order theory.

Does Firm Size Influence Leverage? Evidence from India

2020 ◽  
pp. 097215091989161
Author(s):  
Dilawar Ahmad Bhat ◽  
Udayan Chanda ◽  
Anil K. Bhat
Keyword(s):  
Emerging Economies ◽  
Firm Size ◽  
Order Theory ◽  
Time Span ◽  
Corporate Debt ◽  
Pecking Order ◽  
Pecking Order Theory ◽  
Developed Economies ◽  
Debt Market ◽  
The Relationship

This study aims to investigate the size–leverage relationship in the context of India—one of the important emerging economies. Most of the studies that have tested the relationship between firm size and leverage have been conducted in the developed economies. For testing the much-discussed size–leverage relationship, we employ a large sample of firms for the study over a time span of 17 years from 2002 to 2018. Our findings support the negative size–leverage relationship, confirming the propositions of the pecking order theory. The study has implications for policymakers regarding the development of corporate debt market in India.

scholarly journals Does Information Asymmetry Affect Dividend Policy? Analysis Using Market Microstructure Variables

2021 ◽  
Vol 13 (7) ◽  
pp. 3627
Author(s):  
Seonhyeon Kim ◽  
Jin-young Jung ◽  
Sung-woo Cho
Keyword(s):  
Information Asymmetry ◽  
Market Microstructure ◽  
Dividend Policy ◽  
Emerging Market ◽  
Negative Relationship ◽  
Order Theory ◽  
Pecking Order ◽  
Pecking Order Theory ◽  
Stock Liquidity ◽  
The Relationship

This study analyzes the relationship between information asymmetry and dividend policy in an emerging market, Korea. We adopt several proxies for information asymmetry, such as the Glosten–Harris and Hasbrouk–Foster–Viswanathan models, drawn from market microstructure literature. This study finds a negative relationship between information asymmetry and dividend yields, which appears to be particularly strong when firms have difficulty raising external capital because they have high systematic risk, financial constraints, or low stock liquidity. This result, based on an analysis using market microstructure variables that provide direct measures of information asymmetry, suggests that the pecking order theory holds for the Korean stock market and that information asymmetry is a strong determinant of dividend policy decisions in an emerging market.

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