Firm Characteristics and Capital Structure of Small and Medium Enterprises in Kenya

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dc.contributor.authorMugwe, Munga Michael
dc.contributor.authorMakori, Daniel
dc.date.accessioned2020-11-02T07:49:00Z
dc.date.available2020-11-02T07:49:00Z
dc.date.issued2019
dc.descriptionA Paper Published in International Journal of Current Aspectsen_US
dc.description.abstractSmall and Medium Enterprises play an important role towards economic growth and development in Kenya at large. However, there is limited evidence on their capital structure or how they take financing decisions in Kenya. It was therefore imperative to understand how key firm characteristics affect capital structure of these enterprises to help in improving policy decisions and offering practical guidance. This study investigated firm characteristics which influence capital structure of SMEs focusing on Kenya with the hope that findings and recommendations will be replicated in in other countries. Ordinary Least Square model was applied on Kenya’s latest enterprise survey data of 2018.Both descriptive and regression analyses were employed. Results indicate that firm size and firm age are negatively associated with the capital structure. On the other hand, the study found that firm performance and assets base, affected capital structure positively. The study concludes that SMEs should find alternative funding avenues rather than relying on borrowing. A further study was also recommended to analyse why firm performance was positively related to capital structure.en_US
dc.identifier.citationMugwe, M., & Makori, D. (2019). Firm Characteristics and Capital Structu re of Small and Medium Enterprises in Kenya. International Journal of Current Aspects , 3(V), 42 56. https://doi.org/10.35942/ijcab.v3iV.60en_US
dc.identifier.issn2616-6976
dc.identifier.urihttp://ir-library.ku.ac.ke/handle/123456789/20770
dc.language.isoenen_US
dc.publisherIJCAB Publishing Groupen_US
dc.subjectFirm Characteristicsen_US
dc.subjectCapital Structureen_US
dc.subjectFirm Sizeen_US
dc.subjectFirm ageen_US
dc.subjectTangible assetsen_US
dc.subjectFirm performanceen_US
dc.subjectSmall and Medium Enterprises in Kenyaen_US
dc.titleFirm Characteristics and Capital Structure of Small and Medium Enterprises in Kenyaen_US
dc.typeArticleen_US
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