Abstract:
The study examines the moderating effect of CEO
tenure and managerial experience on firm specific
determinants of corporate cash holdings among
private manufacturing firms in Kenya. The
research employed the upper echelons theory to
identify CEO characteristics that are linked to
various organizational processes and outcomes
such as cash holding. This survey-based study
selected a sample of 156 private manufacturing
firms from the firms registered with the KAM that
are located in Nairobi and surrounding area using
stratified random sampling technique. The
research collected primary data using selfadministered
questionnaires to gather self-reported
financial measures from the CFOs. The study
employed stepwise multiple regression analysis to
determine the moderating effect of CEO tenure and
managerial experience on independent and
dependent variables. The study concludes that the
CEO tenure significantly moderates firm size,
growth opportunities, and likelihood of financial
distress as determinants of corporate cash
holdings. Further, the study concludes that CEO
managerial experience in other industries
significantly moderates firm size and cash flow
volatility determinants of corporate cash holdings
among private manufacturing firms in Kenya.
