Effect of Equity Financing Strategy on Service Quality; Does Bed Capacity Matter; Evidence from Healthcare Providers in Kenya

Authors

  • Lily Chepkorir Koros Moi University
  • Prof. Michael Korir Moi University
  • Prof. Loice Maru Moi University

Abstract

The purpose of this study was to establish the moderating effect of bed capacity on the relationship between equity healthcare financing strategies and the delivery of quality healthcare services in Kenya. The target population being senior management and the clients drawn from 535 level 4 to 6 hospitals in Kenya. Random sampling was used to select a sample size of 242. Findings from Hayes Model 1 showed that bed capacity showed significant moderating effect on the relationship between equity financing and service quality (R2Δ=.091, β=.348, p<0.05). The study concludes that equity financing enhances delivery of quality service in hospital with high bed capacity. Further, government owned hospital with high bed capacity increase use of equity debt financing strategies in improving service quality delivery. The study provides unique knowledge on hospital financing in relationship to service quality. In addition, the study has contributed to new knowledge by indicating moderating effect of hospital bed capacity on financing strategies- service quality relationship.

Keywords: Equity Financing, Delivery, Service Quality, Hospital, Bed Capacity & Kenya

Author Biographies

Lily Chepkorir Koros, Moi University

Phd Student, School of Business and Economics, Moi University

Prof. Michael Korir, Moi University

School of Business and Economics, Moi University

Prof. Loice Maru, Moi University

Professor, School of Business and Economics, Moi University

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Published

2020-03-27

How to Cite

Koros, L. C., Korir, P. M., & Maru, P. L. (2020). Effect of Equity Financing Strategy on Service Quality; Does Bed Capacity Matter; Evidence from Healthcare Providers in Kenya. Journal of Finance and Accounting, 4(1), 39–53. Retrieved from https://stratfordjournals.org/journals/index.php/journal-of-accounting/article/view/483

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