Impact of Corporate Governance on Corporate Value for Companies Listed at the Nairobi Securities Exchange
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Date
2020Author
Onguka, David
Iraya, Cyrus
Nyamute, Winnie
Type
ArticleLanguage
enMetadata
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The study objective is to establish the impact of corporate governance on corporate value of firms listed at the
Nairobi Securities Exchange. From time to time, capital market authorities have issued guidelines and
regulations for good corporate governance in different areas in order to ensure solid and sound management of
listed companies and to align the interests of all stakeholders thus ensuring the firm’s sustainability and
optimization of the company’s value. Despite these policies, cases of failure and corporate underperformance
caused by unsound corporate governance continue to increase in frequency and magnitude. The paper tested the
hypothesis that there is no significant influence of corporate governance on corporate value. Corporate
governance measurements variables were board independence, board size, board composition and board gender
diversity while corporate value was measured by Tobin Q. Data was obtained from past audited financial
statements of firms quoted at the NSE. The study used census survey for sixty-four listed companies. The
analysis covered a five years period between 2013 and 2017. The study applied agency theory as the anchoring
theory. Descriptive statistics and diagnostic tests were conducted on the data thereafter inferential statistics
namely correlations analysis and regression analysis were used to test the hypothesis. When the data on the study
variables was subjected to descriptive statistics, the results showed a significant relationship between the
variables. The panel data approach was considered more appropriate because the sample data contained both
cross-sectional and time-series data. The study revealed positive and significant relationship between corporate
governance and corporate value.
URI
https://pdfs.semanticscholar.org/5b83/8f0b8ecdabb7d83208ed761fc4dededc6503.pdfhttp://erepository.uonbi.ac.ke/handle/11295/155259
Citation
Onguka, David, Cyrus Iraya, and Winnie Nyamute. "Impact of Corporate Governance on Corporate Value for Companies Listed at the Nairobi Securities Exchange." International Journal of Economics and Finance 12.12 (2021): 1-70.Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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