Capital structure and firm's profitability: study on the banking sector in Kenya

dc.contributor.authorUngwano, S.
dc.date.accessioned2026-02-02T15:26:25Z
dc.date.available2026-02-02T15:26:25Z
dc.date.issued2020
dc.descriptionFull - text undergraduate research project
dc.description.abstractThis study dwells on the impact of capital structure on the firm's profitability based on the banks institutions operating in Kenya. The study will examine the listed banks in Kenya. There are numerous studies carried in Kenya on consequence of capital combinations on the firm profitability but most of them focused on the Micro finance businesses, industrial organizations and allied sectors. Banks operates differently from other financial sectors in general, hence banking sector should be properly distinguished from other firms that provide funds. Banks have unique regulations of operating and high leverage which makes them to be different from the rest of other firms in the market. Secondly, studies done pertaining significance of combination of capital of the banks listed in Kenya were very few. As we all know that Banks are among the key pillars financial providers and economy promoters, had to be studied. Due to the few research done to evaluate the effect of capital structure on banks profitability created the research gap. Furthermore, outcomes shall be of assistance to the banks managers when making decision on choosing the firms' capital structure, investors in making decision on their investments and Scholars who can use the findings to further this research. Debt, retained earnings as well as the equity were the independent variable used while Return on Asset and Return on Equity as dependent variables in this research. Descriptive design was utilized. This research utilized the secondary data where financial statements for the period 2005-2007 and 2010-2013 were sampled. The regression analysis results showed debt with equity had an adverse and significant relationship with banks profitability.
dc.identifier.citationUngwano, S. (2020). Capital structure and firm’s profitability: Study on the banking sector in Kenya [Strathmore University]. http://hdl.handle.net/11071/16054
dc.identifier.urihttp://hdl.handle.net/11071/16054
dc.language.isoen
dc.publisherStrathmore University
dc.titleCapital structure and firm's profitability: study on the banking sector in Kenya
dc.typeThesis
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