View article

Investment groups are formed with the aim of growing and maximizing wealth for the members. However, some have failed making it difficult for them to be sustainable. The main objective of the study is to establish the influence of capital structure on growth in wealth of investment groups in Kenya, and to establish the moderating effect of group size on the relationship between capital structure and the growth in wealth of investment groups in Kenya. The study used cross sectional survey research design. The population of interest was 4020 investment groups registered by Kenya association of Investment groups. Stratified random sampling method was used and 364 investment groups were selected proportionate to the size of the strata. The survey instrument was a questionnaire administered to the group members and their officials. Pilot test was done using 36 respondents who were drawn from target population but not be included in the main study sample. Cronbach alpha was used to test reliability of the instrument, factor analysis was used in the testing of construct validity by considering average variances extracted and squared correlations of the constructs. Analysis of the data was done using descriptive statistics and inferential statistics. Descriptive statistics involved computations measures of central tendency and presented in frequency tables, pie charts and graphical charts. Inferential statistics was done using the multiple regression. Inferential analysis involved fitting of regression models. The regression analysis results obtained from the study show capital structure had a significant influence on growth in wealth. A moderated multiple …