Corporate Governance and Financial Performance of Quasi-Government Organizations in Kenya
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Date
2023
Authors
Manduku, Erick Obegi
Omagwa, Job
Mwenda, Nathan
Journal Title
Journal ISSN
Volume Title
Publisher
Academic Journal of Social Science and Education
Abstract
The purpose of this study was to establish the effect of CG on financial performance of quasi-government organizations in Kenya. Specifically, the study sought to evaluate the effect of board structure, board remuneration, transparency and board independence on financial performance of Quasi-Governmental Organizations in Kenya. In addition, the study sought to establish the moderating effect of firm size on relationship between corporate governance and the financial performance of Quasi-Governmental Organizations in Kenya. The target population comprised of the 187 QGOs over a period of 8 years between 2013 and 2020. The study relied on secondary data which were collected with the aid of a document review guide. Data was analyzed using descriptive analysis, correlation analysis and multiple regression analysis. The study found that board structure had a significant effect on financial performance (p<0.05), board remuneration had a significant effect on financial performance (p<0.05), transparency had a significant effect on financial performance (p<0.05), board independence had a significant effect on financial performance (p<0.05) and lastly firm size had a moderating effect on the relationship between corporate governance and the financial performance (p>0.05). This research confirmed that in separation, CG significantly predicted financial performance. It is recommended that organizations should put in place CG practices that contribute positively towards financial performance
Description
Article
Keywords
Board Structure, Board Remuneration, Transparency, Board Independence, Firm Size, Financial Performance
Citation
Manduku, E., Omagwa, J., & Mwenda, N. (2023). CORPORATE GOVERNANCE AND FINANCIAL PERFORMANCE OF QUASI-GOVERNMENT ORGANIZATIONS IN KENYA. Academic Journal of Social Sciences and Education, 11(1).