The impact of financial leverage on a firm's investment decisions

Date
2015-11
Authors
Koech, Brian Kipkirui
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
This paper studies the impact of leverage on a firm's investment. The impact is measured for both high and low growth firms. The evidence is provided by use of the listed companies in the Construction & Allied and Commercial & Services segments of the Nairobi Securities Exchange (NSE). The approach involves structural estimation and in particular the Simulated Method of Moments (SMM). It furthers the prior research that has been done. However, the results are not consistent with what was concluded. In this case the effect of leverage on investment is positive.
Description
Submitted in partial fulfillment of the requirements for the Degree of Bachelor of Business Science in Financial Economics at Strathmore University
Keywords
Simulated method of moments, Structural estimation, Leverage and investment
Citation