THE STRATEGIC ROLE PLAYED BY CORPORATE GOVERNANCE MECHANISMS IN ENHANCING SUSTAINABLE CORPORATE PERFOMANCE: A SURVEY OF COMMERCIAL BANKS IN KENYA

Authors

  • Stephen Kariuki Daystar university
  • Kefah Njenga Daystar University
  • Dan Irungu Daystar University

DOI:

https://doi.org/10.47672/jsm.152

Keywords:

Corporate Governance, Performance, Board size

Abstract

Purpose: The general purpose of study was to establish the strategic role that corporate governance mechanisms play in the sustainable corporate performance of commercial banking sector in Kenya.

Methodology: The study adopted a descriptive research design. The actual population was also the targeted population was 43 banks since the banks were all accessible. A total of 17 banks were used as an actual sample representing 37% of the total population. The researcher in this study used questionnaire as a data collection tool. The data collected was analyzed by use of both inferential and descriptive statistics.

Results: Study findings indicated that, there was an insignificant relationship between percentage mean of independent directors, top 10 shareholding and ROA. In addition there was an insignificant relationship between board size, percentage mean of independent directors, top 10 shareholding and individual shareholding, and Customer satisfaction index.

Unique contribution to theory, practice and policy: The study recommends that, commercial banks in Kenya should continue adhering to corporate governance requirements since it may have positively contributed to sustainable performance.

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Author Biographies

Stephen Kariuki, Daystar university

Post graduate student

Kefah Njenga, Daystar University

Lecturer, Daystar University

Dan Irungu, Daystar University

Lecturer, Daystar University

References

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Published

2017-01-17

How to Cite

Kariuki, S., Njenga, K., & Irungu, D. (2017). THE STRATEGIC ROLE PLAYED BY CORPORATE GOVERNANCE MECHANISMS IN ENHANCING SUSTAINABLE CORPORATE PERFOMANCE: A SURVEY OF COMMERCIAL BANKS IN KENYA. Journal of Strategic Management, 1(2), 24–45. https://doi.org/10.47672/jsm.152

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