Relationship between board characteristics and firm financial diversification (geographic sales) among listed firms on Nairobi securities exchange, Kenya: static panel approach

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dc.contributor.author Museve, Elijah
dc.contributor.author Nyangweso, Philip Mulama
dc.contributor.author Tenai, Joel
dc.date.accessioned 2018-11-19T12:30:55Z
dc.date.available 2018-11-19T12:30:55Z
dc.date.issued 2017
dc.identifier.uri http://ir.jooust.ac.ke:8080/xmlui/handle/123456789/2875
dc.description.abstract Purpose: The purpose of the study was to determine the relationship between board characteristics and firm financial diversification (geographic sales) among listed firms on Nairobi securities exchange, Kenya: static panel approach. Methodology: Fisher and Levin-Lin-Chu tests were used to test the presence of unit root in the series under study. Hadri residual-based Lagrange multiplier test was used to determine the feasible model. Results: Results revealed existence of positive and significant relationship between interlock directorship and geographic diversification as positive and significant directors’ remuneration had a negative and significant effect on firm’s geographic sales, while operational risk negatively varied with geographic sales Agency Theory, free cash flow hypothesis Resource Based view theory provided theoretical framework. Directors’ remuneration negatively impacted geographic sales but did not explain diversification in relation to national sales. This study affirmed the managerial heuristics as determinant of firm financial diversification providing support to the convectional financial dimensions of firm performance particularly ROE, ROI and EPS. Unique contribution to theory, practice and policy: The Government of Kenya and Capital Market regulator should enact and implement legislations that guides on interlock directorship, directors remuneration diversity and tolerable operational risks as determinants of diversification en_US
dc.language.iso en en_US
dc.publisher American journal en_US
dc.subject listed firms en_US
dc.subject geographic segments sales en_US
dc.subject Diversification en_US
dc.subject board characteristics en_US
dc.title Relationship between board characteristics and firm financial diversification (geographic sales) among listed firms on Nairobi securities exchange, Kenya: static panel approach en_US
dc.type Article en_US


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