| dc.contributor.author | Kariuki, Florence W. | |
| dc.contributor.author | Muchina, S. | |
| dc.contributor.author | Macharia, S. | |
| dc.date.accessioned | 2019-10-16T12:39:43Z | |
| dc.date.available | 2019-10-16T12:39:43Z | |
| dc.date.issued | 2019 | |
| dc.identifier.other | DOI: 10.25103/ijbesar.121.03 | |
| dc.identifier.uri | http://hdl.handle.net/123456789/4355 | |
| dc.identifier.uri | https://ideas.repec.org/a/tei/journl/v12y2019i1p28-33.html | |
| dc.identifier.uri | http://web.b.ebscohost.com/ehost/detail/detail?vid=0&sid=dcaeadc3-986f-4175-ab21-16812c6cc30e%40sessionmgr101&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#AN=137572492&db=buh | |
| dc.description | Vol. 12, No.1, 28-33 | en_US |
| dc.description.abstract | Purpose
This study sought to explore the effect of capital management risk on value of the firm
among private equity financial firms in Kenya.
Design/methodology/approach
Anchored on the agency theory and guided by positivism research philosophy, descriptive
research design as well as causal research design, the study surveyed 115 savings and
credit societies regulated by Sacco Societies Regulatory Authority. A panel regression
model detailing the interaction between capital risk management and firm’s value was set.
Findings
The study found that capital management risk significantly affects value of SACCOs in
Kenya such that a unit change in capital adequacy ratio increases value of SACCO.
Originality/value
The results of the study supported the propositions of agency theory which postulates
that goal incongruence and asymmetric information may generate agency problems
forcing the owners of the firm to incur agency costs which reduce the cash flows available
for investment leading to sub-optimization and thus reducing the value of the firm. We
recommend management of SACCOs in Kenya to seek to improve their capital adequacy
ratio by increasing their tier one and tier two capital so as to increase their overall core
capital. | en_US |
| dc.language.iso | en | en_US |
| dc.publisher | International Journal of Business and Economic Sciences Applied Research | en_US |
| dc.subject | Capital Adequacy Ratio, Capital management risk, Firm value and SACCO | en_US |
| dc.title | Capital Management Risk and Value of the Firm: Perspectives from Private Equity Financial Firms in Kenya | en_US |
| dc.type | Article | en_US |
