| dc.description.abstract | With the ballooning state of real estate companies and entrance of new financing
strategies in Kenya, it is vital to investigate the role of some of the newly adopted
financing strategies. Besides, volatility of returns for real estate companies appears high
with some collapsing in the last decade. This study examined the relationship between
financing strategies and financial performance of real estate firms in Kenya. The
financing strategies considered included: private equity, joint venture, mortgage and
retained earnings. The study also examined the moderating effect of firm size on the
relationship between financing strategies and financial performance. The study utilised
secondary data that was drawn from a sample of fifty five real estate firms for a time
span of six years from 2015 to 2020. In data analysis, panel estimation procedures were
performed. Empirical results from the study show that financing strategies play a
significant role on financial performance of real estate firms. Specifically, private
equity, joint venture and mortgage finance had a positive but statistically insignificant
influence on financial performance. Retained earnings positively and significantly
influenced financial performance. Further, it was found that firm size had a moderating
effect on the relationship between financial components and financial performance. The
study recommends that real estate firms should use retained earnings to fund
investments as this has highest positive benefits. Moreover, real estate companies
should strategically enter into private equity, joint venture and mortgage agreements as
this too can improve financial performance. | en_US |
