The extent of debt financing within state-owned corporations in Kenya
Nyamita, Micah Odhiambo
Garbharran, Hari Lall
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Copyright: 2015. Virtus Interpress. Due to copyright restrictions, only the abstract is available. For access to the full text item, please consult the publisher's website. The definitive version of the work is published in Corporate Ownership and Control, Vol 12, Issue 4 (Special issue), 895-903. http://www.virtusinterpress.org/THE-EXTENT-OF-DEBT-FINANCING.html
The public sector reforms’ programme in Kenya, has witnessed five state-owned corporations being privatised, and several more, from hotels to banks, have been scheduled to be privatised. However, many of Kenya’s state-owned corporations are in considerable debt, which reduce their value in the process of privatisation. This study attempted to determine the extent and the theory suitable for explaining debt-financing within the state-owned corporations in Kenya from 2007 to 2011. The study applied both descriptive statistics and a hybrid of cross sectional and longitudinal quantitative surveys. The results observed some level of stability on the aggregate long-term debt ratios, with minimal use of stock market instruments, which implied the application of the agency theory.
Nyamita, M. O.; Dorasamy, N. and Garbharran, H. L. 2015. The extent of debt financing within state-owned corporations in Kenya Corporate ownership and Control. 12(4) (Special Issue): 895-903.