Ownership Structure and Financial Performance of Listed Firms in Kenya: Mediation Role of Corporate Diversification

Purpose: The study aimed at examining the mediating role of corporate diversification between ownership structure and financial performance listed firms in Kenya. Methodology/Approach/Design: As guided by explanatory research design, 65 from 2003 to 2017 were targeted. However, panel data 35 considered after excluding suspended delisted as far period is concerned. Results: regression analysis finding indicated that positively significantly mediated institutional (? = .005, p-value .000). Furthermore, there was a negative but statistically significant mediation effect foreign -.0019, .023). These effects existed despite direct well being insignificant. Practical Implications: study, therefore, suggested management ensure proper implementation it transmits on performance. More importantly, policymakers are streamline taxation investors, tackle malpractices firm leading embezzlement investor funds. Future studies need enlarge scope incorporate unlisted different stock exchanges East Africa. Other types managerial, family state be analyzed. In addition, other forms measures could investigated future researchers. Originality/Value: To attain main objective, used path diagrams examine via diversification.