Abstract: Companies need more finance as they grow since increased operating expenditures are a result of this growth. Since debt obligations provide tax advantages, financing a corporation through them is regarded as being less expensive than using equity. A tax shield connected with debt financing has advantages, and debt financing has information costs that are significantly lower than those associated with the issuance of new shares. However, debt issues have plagued the majority of NSE companies. Therefore, the study sought to investigate the effect of firm age on long term debt of Nairobi Securities Exchange, Kenya. The study was anchored on pecking order theory and agency theory. The study utilized descriptive research design. The study utilized secondary data from annual accounting report of quoted firms on Nairobi securities exchange from 2007 to 2011. Data analysis was performed in order to convert obtained data into a format that can be used for interpretation and conclusion. Because the study was based on panel data, the analysis was based on panel regression. Result demonstrated a negative and significant effect between firm age and long term debt. The study recommended that firms should find alternative ways of financing than having long term debt.
Keywords: Agency Theory, Firm Age, Long Term Debt, Pecking Order Theory.
Title: FIRM AGE AND LONG TERM DEBT OF FIRMS LISTED AT THE NAIROBI SECURITIES EXCHANGE, KENYA
Author: Oliver Mukweyi Pyoko
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
Vol. 11, Issue 1, April 2023 - September 2023
Page No: 438-442
Research Publish Journals
Website: www.researchpublish.com
Published Date: 19-September-2023
