Keywords
firm value
macroeconomic factors
Nairobi Securities Exchange
emerging markets.
How to Cite
Abstract
Purpose – The study aims to explore how macroeconomic variables moderate the relationship between asset structure and firm value among firms listed on the Nairobi Securities Exchange (NSE) in Kenya.
Theoretical framework – The study contributes to the existing knowledge on asset structure and firm value by introducing macroeconomic factors as moderators of firm valuation models.
Design/methodology/approach – A causal-comparative research design was employed and secondary data were collected from 51 firms listed on the NSE between 2010 and 2019. The hypotheses of the study were tested using panel data regression and multiple linear regression methods. The normality, heteroscedasticity, multicollinearity and linearity of the results were tested to verify their robustness.
Findings – Asset structure significantly impacts firm value. Moreover, macroeconomic factors play a significant role in moderating the relationship between asset structure and firm value. This indicates that changes in the macroeconomic environment impact the relationship between asset structure and firm value.
Practical and social implications of the research – The results can be used by investors, managers and policymakers because they highlight the importance of considering macroeconomic conditions when making decisions about asset allocation, investment strategies and financial policy in emerging markets.
Originality/value – The research contributes to the existing body of knowledge on emerging markets by depicting how macroeconomic variables soften the interrelation between asset structure and firm value. It provides a reputable empirical basis for future studies on firm-level financial choices in varying macroeconomic settings.
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