Corporate Governance And Financial Performance Of Commercial Banks In Kenya
Abstract
The focus of this study is to examine the Governance factors that have impact on the
financial performance of banks in Kenya. The aim of the study is to determine the
governance policies used by banks in Kenya and the resulting impacts on the financial
performance of banks. A cross-sectional analysis style was applied during this study.
The population concerned during this study was all the forty-two banks in Kenya. A
study was carried out on the forty-two financial institutions that were accredited and
operational in Kenya as at thirteenth August, 2016.Primary knowledge were obtained
by administering questionnaires to CEOs of the forty-two banks. Content validity of
the instrument of information assortment was assured by making certain that every of
the items within the form addressed specific contents and objectives of the study.
SPSS was accustomed run multiple correlations Analysis to see the magnitude of the
link and prediction of monetary performance severally. It was absolutely realized that
company governance plays a vital role on monetary performance. From the findings,
company governance factors such as Corporate Governance Policies and Rights of
Shareholders account for sixty-one percent of the governance factors affecting the
performance of banks. Conclusions drawn were that the manner an entity is governed
has a great impact on the returns of the entity and commercial banks will flourish if
their stakeholders concern are prioritized. They should therefore deploy appropriate
governance structures, risk control systems and be transparent in their dealings.
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http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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