The Effects of corporate governance on the financial performance of partially owned government companies listed in the Nairobi Securities Exchange.

Rodney, Njogu Munene

The Effects of corporate governance on the financial performance of partially owned government companies listed in the Nairobi Securities Exchange.

Date

2022

Authors

Rodney, Njogu Munene

Publisher

Strathmore University

Abstract

The purpose of this research was to analyze the effects of corporate governance on financial performance of partially owned government firm. These specifically examined how financial performance was influenced by size of the board, independence of the board and frequency of board meetings. Research data for this study was gathered from annual reports in the websites. The research data was analyzed using Statistical Package for Social Sciences (SPSS) and the results of the analyses was presented in tabular and chart forms. The performance of firms was measured using the Return on Assets (ROA). The study adopted a descriptive research design. The population included all partially owned government firms listed in NSE. The study used secondary data from audited and published company annual reports. The study found that, board independence did not play an important role in enhancing financial performance, also it showed that frequently held board meetings have an impact on the financial performance. The study confirms that setting up good corporate governance structures is an important factor in financial performance. From the research findings, the relevance of corporate governance structures is practical because it influences financial performance. A better understanding of corporate governance is attained when the governance structures are studied and analyzed separately as compared to when the study is done broadly and generalized.