Effect of Corporate Governance on Board of Directors Disclosure in Commercial Banking Sector in Kenya

Abstract

The objective of this study was to develop the effect of corporate organization and top administrative staff disclosure in business sparing cash zone in Kenya. The Causal research design was used to carry out the study. The population of this study comprised of all commercial banks licensed and operating in Kenya as listed on CBK website. Therefore, a census survey was carried out. This study relied on secondary data which was obtained from annual reports published by the Central Bank of Kenya; which is also the regulator of the banking sector. The period covered by the study was between years 2013 to 2015. Quantitative information gathered was dissected by the utilization of spellbinding measurements utilizing SPSS (Version 22) and exhibited through means, standard deviations and frequencies. The concentrate additionally utilized ANOVA to test the level of huge of the factors on the needy variable at 95% level of centrality. Also, the study led a various relapse examination. This study concluded that financial institutions do not have self-managed codes of conduct to disclosed board decisions, financial situations and facilities provided to board members and executives. Attempts to upgrade corporate organization should focus on the estimation of the stock duty regarding people, since it is conversely related to overseeing body presentation. They should be a set rooftop on the stocks a lone official can assert in the midst of the sheets residency. In order to have fitting seeing by free boss, bank authoritative bodies should require additional disclosure of cash related or individual ties between administrators (or the affiliations they work for) and the association or its CEO. By so doing, they will be more absolutely free. Steps should similarly be carried for required consistence with the code of corporate organization and unyielding disclosure. In like manner, a convincing legal structure should be created that demonstrates the rights and duties of a bank, its boss, shareholders, specific disclosure necessities and oblige effective execution of the law. Finally, there is the need to set up a bound together corporate body saddled with the commitment of social occasion and gathering corporate organization related data and building up the apropos records to energize corporate organization.