dc.description.abstract |
Purpose - This paper aimed to examine the moderating role of
capital structure in the relationship between institutional and
foreign ownerships on corporate diversification of listed firms at
the Nairobi Securities Exchange, Kenya.
Design/Methodology - The target population comprised of all
the 65 listed firms at Nairobi Securities Exchange in Kenya.
However, the inclusion criteria were based on all firms listed at
the NSE from 2003 to 2017.
Findings - Capital structure significantly moderated the
relationship between institutional ownership and corporate
diversification. However, there was a statistically insignificant
moderating effect of capital structure in the relationship between
foreign ownership and corporate diversification.
Practical Implications - As to increase diversification, listed firms
are suggested to have low levels of capital structure and
institutional ownership. Furthermore, low levels of foreign
ownership and high capital structure is vital in attaining high
diversification levels.
Originality - The study contribution is the moderating effect of
capital structure in institutional ownership - corporate
diversification linkage. |
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