Browsing by Author "Mukaria, Joyline Nkatha"

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    Corporate Governance and Profitability of Manufacturing and Allied Firms Listed at the Nairobi Securities Exchange in Kenya
    (Kenyatta University, 2025-06) Mukaria, Joyline Nkatha
    Listed manufacturing and allied firms play a key role to the economy of Kenya by contributing to its gross domestic product and in creation of employment. Despite being recognized as pillars of economic upsurge and development, the manufacturing and allied firms listed at the Nairobi Securities Exchange in Kenya have consistently faced challenges as far as their profitability is concerned. For instance, the trend in profitability of the manufacturing listed firms at Nairobi Securities Exchange has been a on a declining trend for the 8-year period starting at 1.73 to 0.53 from 2016 and 2023 respectively. Against this background, the study sought to establish the effect of corporate governance on profitability of manufacturing and allied firms listed at the Nairobi Security Exchange in Kenya with inflation as a moderator variable. More specifically, this study sought to establish the effect of board size, board independence, board diversity, board meetings and board ownership on profitability of manufacturing and allied firms listed at Nairobi Securities Exchange with inflation as a moderator variable. The agency, stewardship, resource dependence, stakeholder and Keynesian theories provided anchorage to the proposed study. The study adopted descriptive survey design targeting 8 manufacturing and allied firms that were listed on the Nairobi Securities Exchange and census was adopted. Information from auxiliary sources was gathered on a period 2016-2023 and Statistical Package for the Social Sciences version 27 guided processing. Relevant diagnostic tests including multicollinearity, normality and autocorrelation were carried to test the robustness of the regression models. Ethical issues considered in this study included referencing of the literature reviewed to avoid plagiarism and confidentiality of the data that was collected. Correlation results were that while board size had a moderate but positive relationship with profitability, board independence also had a moderate but negative relationship with profitability. On the other hand, board diversity, board meetings as well as board ownership and inflation rate all had strong and positive relationship with profitability of the listed manufacturing firms in Kenya. Regression results confirmed that corporate governance has significant effect on profitability moderated by inflation. The study concluded that corporate governance and inflation have significant effect on profitability. It was recommended that Capital Market Authority should establish an optimal board size should be used as a benchmark by these listed firms. To improve the profitability of the listed manufacturing firms in Kenya, there is need for more independent and executive directors to be included on boards. Shareholders of the listed manufacturing firms in Kenya should occupy a central role and demand for inclusion of more female and foreign directors to bring in new skills that can enhance profitability. The number of meetings held in a financial year by the board should be increased. The meetings convened by boards should have clear agenda in place. There is need for the Central Bank of Kenya to have in place relevant policies that can stabilize overall prices of goods in the economy.
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    Corporate Governance, Inflation and Profitability of Manufacturing and Allied Firms Listed at the Nairobi Securities Exchange in Kenya
    (Stratford Peer Reviewed Journals and Book Publishing, 2025-03) Mukaria, Joyline Nkatha; Aluoch, Moses Odhiambo
    Despitebeing recognized as pillars of economic upsurgeand development, the manufacturing and allied firms listed at the Nairobi Securities Exchange in Kenya have consistently faced challenges as far as their profitability is concerned. For instance, in the period 2016-2023, their average value of return on assets stood at -0.0134, meaning significant amount of loses were reported by these firms. Against this background, the study soughttoestablish the effect of corporate governance and inflation rate on profitability of manufacturing and allied firms listed at the Nairobi Security Exchange in Kenya. More specifically, this study sought toestablish the effect of boardsize, board independenceandboard diversityon profitabilityof manufacturing and allied firms listed at Nairobi Securities Exchange. The agency, stewardship,resource dependenceand Keynesian theoriesprovidedanchorage to the proposed study.The study adopteddescriptive survey design targeting 13manufacturing and alliedfirms thatwerelisted onthe Nairobi SecuritiesExchangeand census wasadopted. Information from auxiliary sources was gathered on a period 2016-2023 and SPSS guided processing. Correlation results werethat while board size had a moderate but positive relationship with profitability, board independence alsohad a moderate but negative relationship with profitability. On the other hand, board diversity and inflation rate all had strong and positive relationship with profitability of the listed manufacturing firms in Kenya. The study concludesthat corporate governance and inflation have significant effect on profitability. The study recommends thatCapital Market Authority shouldestablish an optimal board size should be used as a benchmark by these listed firms. To improve the profitability of the listed manufacturing firms in Kenya, there is need for more independent and executive directors to be included on boards. Keywords:Corporate Governance, Board Size, Board Independence, Board Diversity, Inflation, Profitability