Browsing by Author "Namusonge, Gregory S."

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    Determinants of Corporate Cash Holdings: Evidence from Private Manufacturing Firms in Kenya
    (GreenField Advanced Research Publishing House, 2015-06) Kariuki, Samuel N.; Namusonge, Gregory S.; Orwa, George O.
    Cash is an important requirement to ensure continued operations, yet excessive cash holdings might result in many problems which include; higher opportunity costs of holding cash, cash abuse, a tool for obtaining the controlled self-interests and the higher agency costs. The study established that there is a negative and insignificant linear relationship between growth opportunities and corporate cash holdings. The study also revealed that leverage is a significant positive determinant of corporate cash holdings in line with the precautionary motive. In regard to firm size, the study findings indicate that firm size positively determines corporate cash holding. Further, the study revealed that there is a negative linear relationship between likelihood of financial distress and cash holdings. The findings also confirmed a positive relationship between cash flow variability and corporate cash holdings. The study therefore concludes that; leverage, firm size, likelihood of financial distress and cash flow variability determine corporate cash holdings among private manufacturing firms in Kenya.
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    Firm Characteristics and Corporate Cash Holdings: A Managerial Perspective from Kenyan Private Manufacturing Firms
    (GreenField Advanced Research Publishing House, 2015-04) Kariuki, Samuel N.; Namusonge, Gregory S.; Orwa, George O.
    The purpose of this study was to investigate the managerial perspectives on the firm characteristics and corporate cash holdings among in private manufacturing firms in Kenya. Several international studies show that companies retain important cash holdings. Yet, the prevalent questions have been: Why do firms hold huge amount of cash? Is there an optimum level of cash holdings? A review of the extant literature reveals that mostly the current studies depend on secondary data to provide evidence on corporate cash holdings. This survey-based study sought to bridge this gap in the literature by examining chief finance officers of private manufacturing firms to comprehensively investigate the corporate cash holdings from a managerial perspective. A sample of 156 firms was selected for the survey using stratified random sampling technique from which 117 questionnaires were returned. The primary data was sourced through personally administered survey questionnaires to the chief finance officers. Data was analyzed using descriptive statistics and inferential statistics (independent sample t-test). The study concludes that CFOs of private manufacturing firms in Kenya are of the view that growth opportunities, leverage and debt structure, firm size, likelihood of financial distress and cash flow variability are all important drivers of corporate cash holding policy.
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    Moderating Effect of CEO Tenure and Managerial Experience on Firm Specific Determinants of Corporate Cash Holdings
    (Seventh Sense Research Group (SSRG), 2015-04) Kariuki, Samuel N.; Namusonge, Gregory S.; Orwa, George O.
    The study examines the moderating effect of CEO tenure and managerial experience on firm specific determinants of corporate cash holdings among private manufacturing firms in Kenya. The research employed the upper echelons theory to identify CEO characteristics that are linked to various organizational processes and outcomes such as cash holding. This survey-based study selected a sample of 156 private manufacturing firms from the firms registered with the KAM that are located in Nairobi and surrounding area using stratified random sampling technique. The research collected primary data using selfadministered questionnaires to gather self-reported financial measures from the CFOs. The study employed stepwise multiple regression analysis to determine the moderating effect of CEO tenure and managerial experience on independent and dependent variables. The study concludes that the CEO tenure significantly moderates firm size, growth opportunities, and likelihood of financial distress as determinants of corporate cash holdings. Further, the study concludes that CEO managerial experience in other industries significantly moderates firm size and cash flow volatility determinants of corporate cash holdings among private manufacturing firms in Kenya.