Corporate Governance Attributes and Sustainability of Selected Commercial State Corporation in Kenya
| dc.contributor.author | Somo, Meymuna Abdullahi | |
| dc.date.accessioned | 2025-04-03T13:40:12Z | |
| dc.date.available | 2025-04-03T13:40:12Z | |
| dc.date.issued | 2024-06 | |
| dc.description | A Research Project Submitted to the School of Business, Economics and Tourism in Partial Fulfillment of the Requirement for the Award of the Master Degree in Master of Business Administration (Finance Option) at Kenyatta University, June 2024. Supervisor Moses Aluoch | |
| dc.description.abstract | Kenya's commercial State Corporations faces instances of mismanagement, financial improprieties, and inadequate disclosure have expressed concerns regarding the sustainability and efficacy of these institutions. This study sought to address these issues by examining the link between corporate governance characteristics and the viability of commercial state corporations in Kenya. The objectives were to evaluate the effect of board members' occupational expertise, board committee meetings, board tenure and board size on the sustainability of commercial state corporations in Kenya. The study was guided by Agency Theory, Stakeholders Theory, Resource Dependence Theory and Transaction Cost Theory. This study employed an explanatory research design and descriptive research design. The study focused on the target population of five commercial state corporations: Kenya Railways Corporation, Kenya Electricity Generating Company, Kenya Ports Authority, Kenya Power and Lighting Company, and Kenya Electricity Transmission Company using purposive sampling method. The unit of observation were the audited financial reporting of these five corporations for the period 2014 to 2023 making a total of 50 observations. Panel regression analysis was the chosen empirical model, considering the panel data nature of the research. The audited financial reports of the five firms served as the source of secondary data. The data collection procedure involves obtaining necessary permissions from Kenyatta University and National Commission for Science, Technology and Innovation, followed by the extraction of relevant information from the financial statements using a data collection schedule guide. Data analysis includes both descriptive and inferential analyses. Descriptive analysis involved means and standard deviations, while inferential analysis utilizes panel regression analysis. The results were presented in tables showcasing means, standard deviations, frequencies and coefficients for clear interpretation. Various diagnostic tests, including multicollinearity, normality, stationarity, heteroscedasticity, and the Hausman specification test, were conducted to ensure the sturdiness of the results. The study adhered to ethical guidelines set by Kenyatta University emphasizing the importance of avoiding data fabrication and falsification. The coefficient for board committee meetings was not significant, suggesting that meeting frequency does not significantly affect sustainability. Board tenure demonstrated a significant positive impact on sustainability, while board size also showed a significant positive effect. In an increasingly dynamic business environment, commercial state corporations should embrace innovation and adaptation to remain resilient and sustainable. This may involve leveraging emerging technologies, exploring new business models, and anticipating and responding to evolving market trends and regulatory requirements. Boards should encourage a culture of innovation and agility to drive long-term value creation and competitiveness. | |
| dc.description.sponsorship | Kenyatta University | |
| dc.identifier.uri | https://ir-library.ku.ac.ke/handle/123456789/29907 | |
| dc.language.iso | en | |
| dc.publisher | Kenyatta University | |
| dc.title | Corporate Governance Attributes and Sustainability of Selected Commercial State Corporation in Kenya | |
| dc.type | Thesis |