Corporate Governance, Financial Characteristics, Macroeconomic Factors and Financial Performance of Agricultural Firms Listed at the Nairobi Securities Exchange, Kenya
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Date
2021
Authors
Aluoch, Moses Odhiambo
Journal Title
Journal ISSN
Volume Title
Publisher
European Scientific Journal
Abstract
This study sought to examine the relationships between corporate
governance, financial characteristics, macroeconomic factors and financial
performance of agricultural firms listed at the Nairobi Securities Exchange,
Kenya. The specific objectives were to establish the effect of corporate
governance on financial performance; to determine the intervening effect of
financial characteristics on corporate governance and financial performance;
to establish the moderating effect of macroeconomic factors on corporate
governance and financial performance of listed agricultural firms; and to
establish the joint effect of corporate governance, financial characteristics,
macroeconomic factors and financial performance of listed agricultural firms
in Kenya. This study is anchored on agency theory, transaction cost theory;
political theory and cash conversion cycle theory. The study used census
approach and a target population of seven agricultural firms listed at the
Nairobi Securities Exchange between 2002 and 2016 was incorporated. The
study used panel data. Corporate governance, financial characteristics and
financial performance data was extracted from annual reports of the
individuals firms while macroeconomic factors data was extracted from
Central Bank of Kenya and Kenya National Bureau of Statistics economic
reports. The study employed longitudinal descriptive research design
Descriptive and panel data regression analysis were conducted. Corporate
governance had significant effect on financial performance of listed
agricultural firms in Kenya; the intervening effect of financial characteristics
on the relationship between corporate governance and financial performance
was not determined; the moderating effect of macroeconomic factors on the
relationship between corporate governance and financial performance was
confirmed; and the joint relationship between corporate governance, financial
characteristics and macroeconomic factors on financial performance was
established. The study recommended a review of corporate governance
principles and directors to comply with corporate governance structure and
practices to enhance financial performance of firms.
Description
Article
Keywords
Corporate Governance, Macroeconomic Factors, Financial Characteristics, Financial Performance, Listed Agricultural Firms
Citation
Aluoch, M. O. (2021). Corporate Governance, Financial Characteristics, Macroeconomic Factors and Financial Performance of Agricultural Firms Listed at the Nairobi Securities Exchange, Kenya.