Browsing by Author "Serem, Hosea"

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    Financial Flexibility and Firm Value of Listed Manufacturing Companies in Kenya
    (Kenyatta University, 2025-12) Serem, Hosea
    Enhancing firm value ranks among the most important objectives of listed manufacturing companies because it promotes investment attraction, growth, and industrial development. Though the manufacturing sector is vital to Kenyan economic development, a mere 12% of listed manufacturing companies are accounted for under the total market capitalization on the NSE, an indication of persistent poor performance. This research explores how financial flexibility impacts the value of listed manufacturing companies in Kenya in light of liquidity management, capital structure, and structure of assets with concentration of ownership as the moderator. On the basis of trade-off theory, pecking order theory, agency theory, and the resource-based view, the current study is of descriptive correlational nature, utilizing the panel data of 19 manufacturing firms for the period 2015-2024. Exhaustive enumeration is a method applied, and panel regression techniques are employed to identify direct as well as interaction effects, where choice of the appropriate model is based on the Hausman specification test. Data will be examined using summary and inferential statistical techniques aided by diagnostic tests in an attempt to ascertain effectiveness and adequacy of results. Anticipated results are aimed at informing policy making, investment decision, and academic writing of financial flexibility, ownership structure, and firm valuation. Financial flexibility and firm valuation relationships among NSE-listed firms are researched over the period stipulated above. The research quantified financial flexibility by liquidity management, capital structure, and asset profile, and concentration of ownership was an examination of a moderator variable. Descriptive statistics showed enormous variations in debt–equity ratios, cash positions, asset compositions, and ownership concentrations between firms, as reflective of diversified financial strategies between firms within the industry. Diagnostic tests confirmed validity and robustness of panel regression model, uncorrupted by multicollinearity and autocorrelation, and the variables were stationary. Inferential analysis found substantial positive correlation between measures of financial flexibility and firm value in the guise of Tobin's Q. Regression outcome also confirmed liquidity management, capital structure, and asset structure to significantly enhance firm value, and ownership concentration did likewise. The model explained 79.4% variation of firm value, supporting the superior role of financial decision-making in market value establishment. The study confirmed that firms with optimal liquidity, highly tolerated capital structures, and optimal asset holdings had achieved better performance and stability. The study was found to improve governance discipline and long-term value creation through tight ownership. Findings add to the body of corporate finance by bridging aspects of financial flexibility into the context of Kenyan firms, giving managerial suggestions to the policymakers, investors, and managers on how to boost firm competitiveness through strategic financial flexibility