Effect of bankruptcy costs on value of firms listed in Nairobi securities exchange

Q3 Decision Sciences

Journal of Management Information and Decision Science Pub Date : 2023-03-31 DOI:10.26524/jms.13.1

Dennis Nyamasege C P A

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Abstract

This study measured the effect of bankruptcy costs on the value of the firm . Financial statements of listed firms for the period of 10 years 2008- 2017 were used. The study was anchored on the Traditional theory which emphasizes on optimality of a capital structure. This study was guided by positivisim research philosophy due to its power of applting deductive logic in arriving at meanings. Asample of 40 firms which have been consistently quoted during the entire study period of 2008-2017 was used. A data collection sheet was used to extract secondary data from published financial statements. Peer reviews were done to unsure face validity while expert opinion ensured content validity. Data was analyzed using descriptive statistical methods of minimums, maximums, mean, percentages and standard deviation. Further Karl Pearson correlation coefficient and backward regression techniques were adopted in analysing the panel data. The results were presented in the form of summarised tables and graphs. The findings revealed bankruptcy costs and had significant effect on value of the firms listed in Nairobi Securities Exchage. It was recommended that information symmetry could be enhanced through close monitoring of compliance to corporate governance practices particularly on disclosure requirements.

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破产成本对内罗毕证券交易所上市公司价值的影响

本研究测量了破产成本对企业价值的影响。采用上市公司2008- 2017年10年的财务报表。本研究立足于传统的资本结构最优理论。本研究以实证主义研究哲学为指导，运用演绎逻辑获得意义。使用了在2008-2017年整个研究期间一直被引用的40家公司的样本。数据收集表用于从公布的财务报表中提取次要数据。同行评议不确定面孔效度，专家意见确保内容效度。采用最小值、最大值、平均值、百分比和标准差等描述性统计方法对数据进行分析。进一步采用Karl Pearson相关系数和反向回归技术对面板数据进行分析。结果以汇总表格和图表的形式呈现。研究结果表明，破产成本对在内罗毕证券交易所上市的公司的价值有显著影响。有人建议，可以通过密切监测对公司治理做法的遵守情况，特别是对披露要求的遵守情况，来加强信息对称。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of Management Information and Decision Science Decision Sciences-Information Systems and Management

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期刊介绍： Journal of Management Information and Decision Sciences (JMIDS) is a reputed open access journal affiliated to Allied Business Academies. The journal focuses on disseminating the latest research in the field of management information system and its role in decision making, as well their relationships to cognate disciplines including Economics, Finance, Management, Management Science, Marketing, Statistics, Operations Research and Engineering. The journal adheres to stringent double blind peer review policy to maintain the publication quality.