Corporate Governance, Inflation and Profitability of Manufacturing and Allied Firms Listed at the Nairobi Securities Exchange in Kenya
| dc.contributor.author | Mukaria, Joyline Nkatha | |
| dc.contributor.author | Aluoch, Moses Odhiambo | |
| dc.date.accessioned | 2025-10-21T13:44:04Z | |
| dc.date.available | 2025-10-21T13:44:04Z | |
| dc.date.issued | 2025-03 | |
| dc.description | Article | |
| dc.description.abstract | 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 | |
| dc.identifier.citation | Mukaria, J. N. & Aluoch, M. O. (2025). Corporate Governance, Inflation and Profitability of Manufacturing and Allied Firms Listed at the Nairobi Securities Exchange in Kenya, Journal of Finance and Accounting,9(1) pp.106-126.https://doi.org/10.53819/81018102t4315 | |
| dc.identifier.uri | https://doi.org/10.53819/81018102t4315 | |
| dc.identifier.uri | https://ir-library.ku.ac.ke/handle/123456789/31803 | |
| dc.language.iso | en | |
| dc.publisher | Stratford Peer Reviewed Journals and Book Publishing | |
| dc.title | Corporate Governance, Inflation and Profitability of Manufacturing and Allied Firms Listed at the Nairobi Securities Exchange in Kenya | |
| dc.type | Article |