dc.contributor.author | Mageto, James N | |
dc.date.accessioned | 2013-03-18T12:31:40Z | |
dc.date.issued | 2010 | |
dc.identifier.citation | Masters in Business Administration | en |
dc.identifier.uri | http://erepository.uonbi.ac.ke:8080/xmlui/handle/123456789/14499 | |
dc.description.abstract | The recent scandals and corporate failures in the United States and in Europe have led to
a renewed interest in research of corporate governance. Surprisingly enough, despite the
importance of the topic, there are only a few studies on the corporate governance of
banks. Further, to the knowledge of the researcher, no study has established the link
between corporate governance and insolvency risk in Kenya. This is the gap that the
present study sought to bridge by determining the relationship between corporate
governance and insolvency risk among commercial banks in Kenya.
The present study used a cross-sectional survey design. The population of this study was
all the 44 commercial banks which have been operating in Kenya. Data was collected
from the banks’ annual statements. The data sought was on board dimensions such as
size, duality and cognitive diversity. This was the focus of corporate governance. The
insolvency risk data was also sought from the same annual statements. The specific data
sought for insolvency risk was return on assets, shareholder capital and total assets. The
data was analyzed using correlation and regression analysis.
The study found that there were generally low insolvency risks in the banking industry in
Kenya. This is because the highest insolvency risk was 0.27 while the lowest was 0.00.
The mean insolvency risk was 0.0481. The study found that corporate governance was
negatively correlated with insolvency risk (Pearson Correlation Coefficient, R= -0.371
with an adjusted R2 = - 0.132). The study concludes that larger boards do not necessarily
lead to lack of coordination and eventual increase in insolvency risk as prior
recommends need to question the wisdom that larger boards are detrimental to corporate
governance. | en |
dc.description.sponsorship | University of Nairobi | en |
dc.language.iso | en | en |
dc.publisher | University of Nairobi, | |
dc.subject | Bank corporate governance | en |
dc.subject | commercial banks in Kenya | en |
dc.title | The Relationship Between Bank Corporate Governance and Insolvency Risk Among Commercial Banks in Kenya | en |
dc.type | Thesis | en |
local.publisher | School of Business | en |