Universal Journal of Accounting and Finance Vol. 6(4), pp. 132 - 143
DOI: 10.13189/ujaf.2019.060402
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Impact of Corporate Control on Corporate Value: Evidence from Nairobi Securities Exchange


David Onguka *, Eramus S. Kaijage , Cyrus M. Iraya , Sifunjo E. Kisaka
Department of Finance and Accounting, School of Business, University of Nairobi, Kenya

ABSTRACT

This study aimed at determining the impact of corporate control on corporate value of Nairobi Securities Exchange (NSE) listed firms. The paper tested the hypothesis that there is no significant relationship between corporate control and corporate value improvement as indicated by ROA and Tobin Q. Agency theory is the anchoring theory. The study applied census survey for sixty-four firms listed at the NSE. The time frame of analysis is five years between 2013 and 2017. Out of the 64 listed companies targeted, 58 were analyzed forming 90% of the population. Corporate control index was developed as proxy measures of variables. The study applied census survey given that the population of firms listed at the NSE is not large. Regression analysis and correlation analysis were applied to test the hypotheses. The results of descriptive statistics revealed a significant positive relationship between the variables. The study findings were in line with previous research findings and also provided further insight on the impact of self-determining variable, corporate control on the corporate value. Analyst and investors may apply findings to identify crucial control mechanism in financial markets. The findings can also be useful for policies evaluation and development. The study has also applied important mechanism in CCI to examine the effect of corporate control on corporate value which has provided new insight on the relationship thereby enriching the result.

KEYWORDS
Corporate Control, Agency Theory, Corporate Value

Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] David Onguka , Eramus S. Kaijage , Cyrus M. Iraya , Sifunjo E. Kisaka , "Impact of Corporate Control on Corporate Value: Evidence from Nairobi Securities Exchange," Universal Journal of Accounting and Finance, Vol. 6, No. 4, pp. 132 - 143, 2018. DOI: 10.13189/ujaf.2019.060402.

(b). APA Format:
David Onguka , Eramus S. Kaijage , Cyrus M. Iraya , Sifunjo E. Kisaka (2018). Impact of Corporate Control on Corporate Value: Evidence from Nairobi Securities Exchange. Universal Journal of Accounting and Finance, 6(4), 132 - 143. DOI: 10.13189/ujaf.2019.060402.