VIABLE INVESTMENT DECISIONS - THE SOLUTION TO THE AILING LARGE-SCALE RETAIL SUPERMARKETS IN KENYA

Musyoka Mulemba, Denis Ouma, Margaret Atieno

Abstract


Proper investment decisions ensure that supermarket managers invest in viable projects, stipulate optimum capital structure and adequately compensate shareholders. The aim of the study was to evaluate the effect of investment decisions on the profitability of large-scale retail supermarkets in Kenya. The study was guided by portfolio, pecking order, and agency theories. The study was anchored on positivism philosophy. A cross-sectional research design was adopted. The target population was nine large-scale retail supermarkets in Kenya. A positive and statistically significant was found to exist between investment decisions and profitability. This is backed up by a regression coefficient of 0.3930 and a p-value of 0.008, a regression coefficient of 0.4180 and a p-value of 0.016. The study concluded that financial decisions significantly affect the profitability of large-scale retail supermarkets in Kenya. The study recommended implementing viable investment decisions based on customer preferences, expert directions, market forces, and business elements.

 

JEL: L80; L81

 

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Keywords


investment decisions, profitability, large-scale retail supermarkets

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References


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DOI: http://dx.doi.org/10.46827/ejefr.v6i4.1358

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