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Effect of Firm Cash-flow Structure on the Financing Policy of Women Led Small and Medium Size Enterprises in Kenya
| Content Provider | Semantic Scholar |
|---|---|
| Author | Minado, Okwiri Saad Simiyu, Gregory Namusonge |
| Copyright Year | 2019 |
| Abstract | Cash flow and financial structures are very critical for survival of firms yet it is not clear how the cash flow structure affects the financing policy of small and medium size enterprises (SMEs) given the inconclusive theoretical and empirical evidence. Objective: This study is a follow up of an earlier published study done by the same researchers regarding effect of quality of financial information on the financing policy of women. This study sought to appraise the effect of cash-flow structure on the financing policy of women led SMEs in Kenya. Methodology: The target population of 1,746 firms yielded a sample size of 290 firms assuming normal distribution at 0.05 level of significance. Following data cleaning procedure, an actual sample size of 188 firms from the 290 in the original qualified for analysis. The study tested the hypothesis that cash flow structure, as proxied by the operating cash flow as a ratio of all the cash flows, had no significant effect on financing policy as indicated by the debt equity ratio. Secondary data relating to business cash flows, debt and equity was collected on a cross-sectional basis. The study rejected null hypothesis and found out that cash flow structure positively affects the financing policy of women-led SMEs in Kenya. Findings: The study finds that firm cash flow structure has a significant positive effect on the finance policy (debt-equity ratio) of the women led SMEs.the study also finds that as the operating cash flow ratio increases through enhanced cash flows from operating activities, the proportion of debt in the overall capital of the SME also increases. This is possibly because with more cash flows from operations, the firm can easily be able to finance the debt obligations. |
| File Format | PDF HTM / HTML |
| Alternate Webpage(s) | https://www.ijssit.com/main/wp-content/uploads/2019/02/Effect-of-Firm-Cash-flow-Structure-on-the-Financing-Policy-of-Women-Led-Small-and-Medium-Size-Enterprises-in-Kenya.pdf |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |
