FINANCIAL DECISIONS, RESOURCE CONSTRAINTS AND FINANCIAL PERFORMANCE OF FAMILY-OWNED BUSINESSES IN THE MANUFACTURING INDUSTRY IN KENYA
Evelyn N. Tipape - Doctor of Philosophy in Business Administration (Finance Option), Kenyatta University, Kenya
Dr. A. Jagongo - Accounting and Finance Department, School of Business, Kenyatta University, Kenya
ABSTRACT
Although the interest in family-owned business research is growing rapidly, the area of financial decision making is underestimated. Despite of the fact that the vast majority of the studies into the effect of financial decisions in family firms is are focused on the capital structure, they do not give clear answers to the question of how the family businesses behave in this scope and what their true financial logic is. Additionally, the area of the investment decisions and resource constraints effects on Family-owned business performance is rather not better left uncovered. The study seeks to establish the effect financial decisions on the performance of family- owned businesses in the manufacturing industry in Kenya. The target population in this study will be all the 853 family owned businesses registered by KAM. Stratified sampling will be used to select 255 Family-owned businesses registered in KAM. This study will use both primary and secondary data. Primary data will be collected by use of questionnaires. Secondary data will be obtained from audited financial reports of the FOB manufacturing companies. The questionnaire will be subjected to overall reliability analysis of internal consistency. This will be measured using Cronbach alpha as a coefficient of internal consistency. After quantitative data is obtained through questionnaires, it will be prepared in readiness for analysis by editing, handling blank responses, coding, categorizing and keyed into statistical package for social sciences (SPSS) computer software for analysis. The choice of SPSS version 22 to other statistical software is that it is user friendly. Inferential data analysis will be done with the use of factor analysis and correlation analysis to determine the strength and the direction of the relationship between the dependent and the independent variables. A regression model will be fitted and hypothesis testing carried out using multiple regression analysis and standard F tests and t-tests. The qualitative data will be analyzed using content analysis. Data will be presented in form of graphs, tables and pie charts.
