Browsing by Author "Wangombe, David"

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    An examination of the capital structure decisions by companies quoted on the Dar es Salaam Stock Exchange.
    (2013-11-13) Kumalija, Jacob; Koshal, Jeremiah Ole; Wangombe, David; Kiraka, Ruth
    This study was carried out in Tanzania. The study was intended to examine the levels of debt and equity employed by companies quoted on the Dar es Salaam Stock Exchange (OSE) in financing their businesses. The study also aimed at identifying the significant factors that influence the capital structure and further to examine the financial managers' opinions on the factors they perceive important in influencing the capital structure. The study focused on 9 selected non-financial companies quoted on the (OSE). The data was collected for 10 years beginning 2000 to 2009 and was obtained from the companies' financial reports and from questionnaires that were mailed to the (CFOs) of all the 9 companies. The most important theories that have guided this study are pecking order theory, agency cost theory and trade-off theory. By using descriptive analysis, it has been found that companies quoted on the (OSE) are on average moderately levered as they prefer relatively more equity to debt. By using regression analysis, the empirical results show that the significant factors influencing the capital structure of companies quoted on the (OSE) are; industry class, company profitability, company size, non-debt tax shields and growth opportunities. Contrary to the outcome of prior studies in developing countries, this study finds that asset tangibility, earnings volatility and effective tax rate are positively related with capital structure. The results of regression are consistent with the opinions of the CFOs except for assets tangibility, earnings volatility and effective tax rate which are perceived by (CFOs) as important factors while the regression analysis shows them as not influential factors on capital structure by companies quoted on the (OSE)The possible explanation for these differences may be that company officials perceive some of the factors as important while in reality they are not. This study makes several contributions to the body of knowledge as well as providing insights to academicians. The study further reveals that there is no single theory that simultaneously predicts the full set of the reliable factors; this warrants further development of the capital structure theories. Finally, the researcher concludes that capital structure decisions varies from country to country and even from industry to industry and should be dealt as such.
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    Multi-theoretical perspective of corporate environmental reporting: a literature review
    (A Review Integrative Business & Economics Research, ) Wangombe, David
    The purpose of this paper is to analyze the different theoretical perspectives used in the study of Corporate Environmental Reporting (CER) so as to present the areas of overlap that would support the case for a multi-theoretical approach. It responds to researcher’s quest to find a theoretical framework that can be used to adequately explain and predict CER behaviour so as to establish ways in which CER can attain high quality. This paper employs a critical analysis of literature. Early years of CER studies tended to herd around specific theories, but recent times have seen advocacies for a multi-theoretical approach. The paper argues that researchers need to carefully reflect on the theoretical motivation and methodologies they use to make claims about CER behaviour especially where such claims aim at improving the practice of CER, making a contribution to policy making, and contributing to the good of the wider society.
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    The influence of stakeholder identification on the quality of corporate environmental reporting in Kenya
    Wangombe, David
    This study aimed at establishing the stakeholders that managers consider in the CER practices as well as the association between the quality of CER and stakeholder identification. The purpose is to find out if there is a difference in the attention that managers give to different stakeholders with respect to CER reporting decision and whether such difference may explain the variation in the quality of CER. A questionnaire was used to establish the stakeholder power, legitimacy urgency and salience in stakeholder identification. An assessment, using regression, was carried out to establish the association between the stakeholder identification attributes and the quality of CER. It is found that there are different stakeholders considered in the practice of CER but in varying measures. While Government, Shareholders, Customers and Environmental lobby groups are identified as the most significant stakeholder groups in CER reporting, only government is associated with relatively higher quality. There is thus a need for the government to use its special position in society to influence the production of CER that can achieve high quality. But there is also a need for other stakeholder groups to recognise their special place in demanding high quality CER through direct influence in terms of controlling flow of resources and markets to corporation but also petitioning government to continue playing its social role of guiding production of high quality CER. This research contributes to knowledge by establishing the significant stakeholders, the association of stakeholder identification to the quality of CER and by testing applicability of stakeholder theory in CER practices.
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    The quality of corporate environmental reporting in Kenya
    (Inderscience, ) Wangombe, David
    The aim of this paper is to evaluate the quality of mandatory and voluntary corporate environmental reporting (CER) in Kenya. Content analysis was carried out to measure the quality of environmental reporting in four different media; mandatory reports, voluntary environmental reports in annual reports, websites and stand–alone reports. The paper finds that the quality of CER in Kenya is low, varies among firms, and among the reporting media. It is highest in sustainability reports but lowest in both websites and annual reports. The CER is self–laudatory as companies reported more on positive environmental impacts. The two quality measurement indices arrived at different levels of qualities implying that they measured different constructs of quality of CER. This paper contributes to the body of CER literature by documenting the quality of CER of large companies in a developing country. It also provides a comparison of quality among different environmental reporting media and between different reporting indices.