Board Committee Reports and Profitability of Sugar Manufacturing Companies in Kenya
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Date
2024-02
Authors
Okuta, Alice
Mwangi, Lucy Wamugo
Journal Title
Journal ISSN
Volume Title
Publisher
IRJP
Abstract
The sugar manufacturing sector in Kenya has been experiencing a decline in1profitability,
measured using return1on assets, for the past five years (2017-2021). This has led to closure of
some of the companies and other still fail meet their obligations. The purpose ofthisstudy was to
determine the effect of board committee reports on profitability of sugar manufacturing
companies in Kenya. The study was guided by stewardship theory. The explanatory research
design was used in this research. Moreover, the study targeted 10 sugar manufacturing
companies in Kenya. In addition, the participants were 10 staff in the management of each of the
10 sugar manufacturing companies in Kenya. Since target population wassmall, the study used a
censustechnique and hence the entire population was included in the research. The study covered
duration of 5 years from 2017 to 2021. Primary data in this study was gathered using structured
questionnaire and secondary data was gathered using audited financial Statements. Data was
analyzed by use of descriptive statistics including mean, standard deviation, percentage and
frequencies as well as inferential statistics including multiple linear regression analysis with the
support of statistical software referred to as SPSS version 25. The findings were presented in
tables and figures. The findings indicated that board committee reports had a positive and
significant influence on profitability of sugar manufacturing companies in Kenya. The study
recommends that the committee should analyze financial statements, key performance indicators,
and financial trends to provide insights into the company's financial health and identify areas for
improvement. The board of management should establish a clear reporting schedule for board
committee reports, ensuring they are provided on a regular basis and aligned with the board's
meeting calendar.
Description
Article
Keywords
Board Committee Reports, Profitability, Manufacturing Companies
Citation
Okuta, A., & Mwangi, L. W. (2024). BOARD COMMITTEE REPORTS AND PROFITABILITY OF SUGAR MANUFACTURING COMPANIES IN KENYA. International Research Journal of Economics and Finance, 6(1).