Abstract: Managers have to decide how much to finance capital investments and they usually consider various factors in making financing decisions. The study therefore investigated the influence of equity financing decisions on the financial sustainability of manufacturing firms in Nakuru, Kenya. Theory that was used in this study included pecking order theory. The study employed descriptive survey research method. The target population of the study included the general managers and financial managers in manufacturing firms in Nakuru town Kenya. The target population comprised of 33 general managers, and 33 finance managers. Data collection was done through the use of questionnaires constructed on a 5 point Likert scale. The questionnaire was tested for validity and reliability where Cronbach’s coefficient Alpha was computed for the instrument. The collected data was analyzed using statistical package for social sciences (SPSS). Data was analyzed using descriptive statistics which included frequency, percentages, mean and standard deviation and inferential statistics which included regression and correlation analysis and was presented in tables and figures accompanied by relevant discussions. The study established that equity financing had positive significant relationships with financial sustainability of manufacturing firms in Nakuru town. Hence, the study concluded that equity financing, had a significant influence on financial sustainability of manufacturing firms in Nakuru town Kenya. It was recommended that the manufacturing firms top management team should set up policy measures to guide in financing decisions of the firms. This would aid in helping the firms attain a good balance of the financing options and enhance the financial sustainability of the firms.
Keywords: Debt Financing, Equity Financing, Equity Financing Decisions, Financial Sustainability, Manufacturing Firms.
Title: INFLUENCE OF EQUITY FINANCING DECISIONS ON THE FINANCIAL SUSTAINABILITY OF MANUFACTURING FIRMS IN NAKURU, KENYA
Author: Nancy Chepng’etich Korir, Dr. Patrick Kibati
International Journal of Social Science and Humanities Research
ISSN 2348-3156 (Print), ISSN 2348-3164 (online)
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