Corporate Diversification as a Determinant on Firm Value: A Case of Mumias Sugar Manufacturing Firm in Kenya

Abstract

The central theme of the research was to establish the corporate diversification as a determinant on the firm value, a case of Mumias sugar manufacturing firm in Kenya. Using a sample size of (n=306) respondents from different departments the study specifically aimed at; determining the relationship between corporate cultures as a driver of diversification with the firms value for Mumias sugar company. Simple random sampling and stratified sampling was used to come up with the required size of employees who participated in the study. On the other hand, and purposive sampling was used in getting the required managers who were to be used in the study. Primary data collection instruments included the use of questionnaires and interview schedules while secondary instruments included using already exist. The study will adopt cross sectional survey method to collect informing literature from Mumias Sugar manufacturing firm. Test and re-test of the questionnaire was done to ensure construct validity and revision of questionnaires ensured content validity. To ensure reliability of the research instruments, the study attained a Cronbach's Alpha Coefficient of 0.855, which was higher than the recommended 0.7 in social sciences Data analysis will be done using Statistical Package for Social Science version (SPSS 20). Descriptive and inferential statistics were used in this study. The findings will be presented in form of frequency tables and cross tabulation. The outcome of this study was a positive relationship between corporate culture and firm value. The outcome of this study is useful to the management, share holders, employees and customers of Mumias sugar Company. Moreover, the findings also form a basis of reference by interested parties in future.