Assessment of the relationship between corporate governance practices and employee fraud frequency in Non-Governmental Organizations in Kenya
Otieno, Judith Awuor
MetadataShow full item record
The purpose of this study was to determine the relationship between corporate governance practices and employee fraud frequency in NGOs in Kenya. To achieve this objective the study used a causal explanatory design. The population was 1,700 active NGOs from which a sample of 234 was selected using simple random sampling. Primary data was collected through a structured questionnaire. The data collected was analyzed using ordinal regression model to test five hypothesis from the study. The study established that board size was significant in explaining employee fraud frequency in NGOs. The study concluded that most of the governance practices proposed in literature are insignificant in explaining employee fraud frequency. It is recommended that policy makers and the NGO coordination bureau stipulate the maximum board size of 10 members for NGOs. It is further recommended that NGOs use other practices besides governance practices to deter employee fraud such as tone at the top, whistle blower policies, strong compliance programs and conducting fraud risk assessments. The study has contributed to current literature on governance and fraud in NGOs by demonstrating that governance practices alone are not enough in deterring employee fraud in NGOs.