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Faculty of Management Sciences

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    Factors influencing debt financing decisions of corporations – theoretical and empirical literature review
    (Business Perspectives, 2014) Nyamita, Micah Odhiambo; Garbharran, Hari Lall; Dorasamy, Nirmala
    Over the past half century, there has been an increasing interest on identifying the factors influencing debt financing within corporations. Based on available literature, both from developed and developing economies, this literature review paper examined the factors influencing debt financing decisions within corporations. Applying desktop research methodology, the paper used a three-thronged approach: theoretical, methodological and empirical. The theoretical approach reviewed the key theories proposed with respect to corporations’ debt financing decisions. The methodology approach helped in identifying the common applicable conceptual models and the empirical findings related to the factors affecting debt financing of corporations. The factors identified were both firm specific and macroeconomic factors, and the empirical findings showed either positive or negative relationship results.
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    Factors influencing debt financing within State-owned corporations in Kenya
    (International Foundation for Research & Development, 2014-11) Nyamita, Micah Odhiambo; Garbharran, Hari Lall; Dorasamy, Nirmala
    Debt financing is deemed crucial for economic development, as evidenced by the positive relationship between financial deepening and economic growth. Majority of studies on debt financing have been undertaken using data from developed economies, focusing more on private sector non-financial corporations. This study, therefore, attempts to fill the gap in the literature by investigating the factors influencing debt financing, using data from corporations within the public sector and from a developing economy. The study applied the fixed effects (FE), random effects (RE) and the general methods of moments (GMM), using the panel data regression analysis. Profitability, asset tangibility and corporation growth, were identified to be the main factors influencing debt financing within state-owned corporations in Kenya.