Corporate Governance and Financial Sustainability of Nongovernmental Organisations in Kenya
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Date
2021Author
Gitonga, Christine, M
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
Financial sustainability is crucial for the stability of the NGOs in Kenya. The ability of NGOs to
be financially resilient and stable is anchored by corporate governance. The NGOs depends on
donation for financial sustainability. The NGOs have been vital in the provision of education,
health, and other basic amenities. Financial sustainability ensures the going concern of the NGOs.
The donors are motivated if some existing policies and structures ensure business continuity. The
data was sourced through the secondary method. The historical data was readily available. It was
readily available for decision-making. The conceptual, contextual, and methodological gap
resulting from the previous studies. The research looks at the four variables that expounded
financial sustainability. The research studied 50 NGOs. The data was analyzed using SPSS and
putting in place descriptive and inferential statistics. The study finding postulated a positive and
significant level of association between the board size, board composition, CEO duality, and board
diversity. The findings showed positive and strong association as per the findings. Regression and
ANOVA were done to demonstrate the coefficient of determination and significance level. The
variables were explained by R of 62.4%, R square 39.0%, R adjusted 33.6%, and the standard
deviation of 0.3656. The study indicated that the other variable that was not studied in this research
was 61.0%. Board size, Board Composition, CEO Duality, and Board diversity represented 39%.
The findings postulated that board size, board composition, CEO Duality, and board diversity had
a strong and significant level of association with financial sustainability. The constant value was
illustrated by 3.830, while board size, board composition, CEO Duality and board diversity
adjusted accordingly by 0.787, 0.082, 0.325, 0.768 respectively. A one-unit increase in each of the
variables such as board size led to incremental in financial sustainability by 0.787% while an
increase in one unit of board composition led to an increase of financial sustainability by 0.082.
On the other hand, an increase in the one unit of CEO Duality led to a positive and significant
change in the financial performance by 0.325, and finally, an increase in one unit of board diversity
led to an increase in the 0.768 units of financial sustainability.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
- School of Business [1411]
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