Financial Decisions, Resource Constraints and Financial Performance of Family-Owned Businesses in the Manufacturing Industry in Kenya.
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Date
2019
Authors
Tipape, Evelyn N.
Jagongo, A. O.
Journal Title
Journal ISSN
Volume Title
Publisher
International Academic Journals
Abstract
Although the interest in family-owned
business research is growing rapidly, the
area of financial decision making is
underestimated. Despite of the fact that the
vast majority of the studies into the effect of
financial decisions in family firms is are
focused on the capital structure, they do not
give clear answers to the question of how
the family businesses behave in this scope
and what their true financial logic is.
Additionally, the area of the investment
decisions and resource constraints effects on
Family-owned business performance is
rather not better left uncovered. The study
seeks to establish the effect financial
decisions on the performance of familyowned businesses in the manufacturing
industry in Kenya. The target population in
this study will be all the 853 family owned
businesses registered by KAM. Stratified
sampling will be used to select 255 Familyowned businesses registered in KAM. This
study will use both primary and secondary
data. Primary data will be collected by use
of questionnaires. Secondary data will be
obtained from audited financial reports of
the FOB manufacturing companies. The
questionnaire will be subjected to overall
reliability analysis of internal consistency.
This will be measured using Cronbach alpha
as a coefficient of internal consistency. After
quantitative data is obtained through
questionnaires, it will be prepared in
readiness for analysis by editing, handling
blank responses, coding, categorizing and
keyed into statistical package for social
sciences (SPSS) computer software for
analysis. The choice of SPSS version 22 to
other statistical software is that it is user
friendly. Inferential data analysis will be
done with the use of factor analysis and
correlation analysis to determine the
strength and the direction of the relationship
between the dependent and the independent
variables. A regression model will be fitted
and hypothesis testing carried out using
multiple regression analysis and standard F
tests and t-tests. The qualitative data will be
analyzed using content analysis. Data will
be presented in form of graphs, tables and
pie charts.
Description
Research Article
Keywords
Financial decisions, Resource constraints, Financial performance, Family-owned businesses, Manufacturing industry, Kenya
Citation
Tipape, E. N. & Jagongo, A. (2019). Financial decisions, resource constraints and financial performance of family-owned businesses in the manufacturing industry in Kenya. International Academic Journal of Economics and Finance, 3(3), 231-252