Browsing by Author "Murithi, Linet Kanana"

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    Corporate Governance and Firm Performance of Manufacturing and Allied Firms Listed at the Nairobi Securities Exchange, Kenya
    (Kenyatta University, 2025-03) Murithi, Linet Kanana
    As part of Vision 2030, Kenya's government has identified manufacturing firms as an entity of socioeconomic expansion and development. In this regard, the Kenyan government has implemented numerous reforms, including the inclusion of the manufacturing sector as one of the government's four major agendas for revitalizing the sector. Despite these reforms, statistics show that over the last ten years, manufacturing industries in Kenya listed on the Nairobi Securities Exchange have experienced stagnation and declining profits, slowing growth, and declining market share, necessitating the establishment and execution of effective corporate governance. This particular study investigated the effects of corporate governance on continued success among manufacturing and allied firms that have been enlisted at Nairobi Securities Exchange. The study specifically investigated the effects of size and composition of the boards as well as board member education and board diversity on success among manufacturing and allied firms. Agency theory, Resource-Based View and stakeholder’s theory anchor the study. A descriptive research design was employed, along with the stratified random sampling method for selecting participants. The study’s target population was 439 managers from the listed manufacturing and allied firms. Two hundred and nine (209) corporate managers from these manufacturing companies were sampled. Primary data was collected using a self-administered questionnaire, which was first pilot tested using twenty-one (21) respondents which is equivalent of 10% of the sample size. The results of an evaluation of the study instrument's validity and reliability indicated that it was reliable. Collected data was coded, cleaned, and analyzed. Data analysis involved generating and interpreting descriptive statistics (means, percent, standard deviation and visualized through tables, charts, and graphs. Results indicated that board composition (β = 0.246; P=0.002<0.05), board independence (β = 0.295; P=0.000<0.05), board size (β = 0.275; P=0.000<0.05) and board diversity (β = 0.271; P=0.001<0.05) significantly influenced performance of manufacturing and allied firms. It’s recommended that processing entities under Nairobi security exchange should have a reasonable board size, exclusively appoint competent individuals to serve on its board of directors and consider appointing women to the board as this boosts a firm's performance.
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    Performance of manufacturing and allied firms listed at the Nairobi Securities Exchange, Kenya: The role of corporate governance
    (INTERNATIONAL JOURNAL OF RESEARCH IN BUSINESS AND SOCIAL SCIENCE, 2024-08-24) Murithi, Linet Kanana; Muthimi, Janet
    The Kenyan government has implemented numerous reforms, including the inclusion of the manufacturing sector as one of the government's four major agendas for revitalizing the sector. Despite these reforms, statistics show that over the last ten years, manufacturing industries in Kenya listed on the Nairobi Securities Exchange have experienced stagnation and declining profits, slowing growth, and declining market share, necessitating the establishment and execution of effective corporate governance. Therefore, the current study investigated the effects of corporate governance on performance of manufacturing and allied firms listed at Nairobi Security Exchange, Kenya. The study specifically investigated the effects of board composition, board size, board independence and board diversity on performance of manufacturing and allied firms. Agency theory, RBV and stakeholder’s theory anchor the study. Descriptive research design was used. Stratified random sampling technique was used as a sampling technique. A self-administered semi-structured questionnaire was used to collect primary data from a population of four hundred and thirty-nine manufacturing and allied firms. Two hundred and nine corporate managers from these manufacturing companies were sampled. A pilot test of twenty-nine respondents was conducted. Collected data was coded, cleaned, and analyzed. Data analysis included the creation and interpretation of descriptive means, percentages, and standard deviations, which was presented in the form of tables, charts, and graphs. The results of regression analysis established that board composition, board size, board independence and board diversity significant influenced firm performance of manufacturing and Allied Firms listed at the Nairobi Securities Exchange, Kenya