| dc.description.abstract | The study examined the Corporate Governance factors and Financial Performance of
commercial banks in Kenya. The study aimed at establishing the effects of corporate
governance practices and policies on financial Performance of commercial banks.
A cross sectional and analytical research design was in this study. The population
involved in this study was all the 44 commercial banks in Kenya. A sample ratio of 0.3
was used to obtain sample representation of the entire population. In this case, 13 CEOs
from the sampled banks were subjected to the study. Primary data were obtained by
administering questionnaires to CEOs of the sampled banks. Secondary sources were also
used to obtain information; data from the published annual reports and company sources
spanning five years.
The content validity of the two instruments of data collection was assured by ensuring
that each of the items in the questionnaire and interview schedule addressed specific
contents and objectives of the study. Statistical Package for Social Scientists (SPSS) was
used and Spearman Correlation Coefficient and Multiple Regression Analysis to
determine the magnitude of the relationship and prediction of financial performance
respectively were applied. It was found out that corporate governance play an important
role on bank stability, performance and bank’s ability to provide liquidity in difficult
market conditions. From the findings, corporate governance factors (CGPR, CGPO, DPP
and SRR) accounts for 22.4 % of the financial performance of commercial banks, derived
from adjusted R square value of the regression test. | en |
