THE STRATEGIC ROLE PLAYED BY CORPORATE GOVERNANCE MECHANISMS IN ENHANCING SUSTAINABLE CORPORATE PERFOMANCE: A SURVEY OF COMMERCIAL BANKS IN KENYA
DOI:
https://doi.org/10.47672/jsm.152Keywords:
Corporate Governance, Performance, Board sizeAbstract
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.
Downloads
References
Agency Costs & Ownership Structure”, Journal of Financial Economics, Vol 3, pp. 305-6.
Cadbury, A., 1992, Report of the on the Financial Aspects of Corporate Governance. London, Gee & Co.
Carver, J. & C. Oliver, 2002, Corporate Boards that Create Value: Governing Company Performance From the Board Room. San Francisco, CA, Jossey-Bass, John Wiley
Claessesn,S.,(2003). Corporate governance and development. Copyright 2003.The international Bank for Reconstruction and Development. The World Bank 1818 H Street NW Washington, DC 20433.
De Jong, Abe, Carles Gispert, Rezaul Kabir & Luc Renneboog (2002). “International Corporate Governance and Firm Performance: An Empirical Analysis”, Second Draft, May
Evaluation. Master of Business in The Faculty Of Business And Enterprise Swinburne University Of Technology.
Fama, Eugene F. & Michael C. Jensen (1983). Agency Problems and Residual Claims. Journal of Law and Economics 26, no. 2: 327-349.
Jensen, M.C. & Meckling W.H. (1976), “Theory of the Firm: Managerial Behavior,
Shidvasani. A (1993). Board composition, ownership structure and hostile takeovers. Journal of Accounting and Economics 16. This issue.
Siladi,B.,(2006). The Role Of Non-Executive Directors In Corporate Governance:
Downloads
Published
How to Cite
Issue
Section
License
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution (CC-BY) 4.0 License that allows others to share the work with an acknowledgment of the work’s authorship and initial publication in this journal.
