Influence of Firm Financial Characteristics on Leverage of Non-Financial Listed Companies in Nairobi Securities Exchanges

Abstract

In financial management, an organization is always concerned about four major issues which are sources of finance, use of finance, investment decisions, and working capital management. Financial decisions have an influence on the ability of a corporation to remain a going concern since the wrong mix of debt and equity has short term and long-term implications. It is against this the current study examined the influence of firm financial characteristics on the leverage of agricultural companies. Panel regression modelling revealed the positive influence of firm size and negative influence of tangibility, profitability and growth opportunities on the leverage of agricultural listed companies. Operating cash flows moderated the influence of firm financial characteristics on the leverage of agricultural listed companies.