Corporate Governance and Performance of Public Benefit Organizations in Migori County, Kenya

Abstract

The concept of corporate governance among corporate entities has recently received a lot of attention due to an increase of scandals and crises globally. The contribution made by public benefit organizations to good governance has effected growth in economy as well as several social background aspects. However, PBOs within Migori County have continued to face many challenges in the implementation process of good governance practices. This has led to wastage of resources on formulation of plans of great governance which can give their counterparts a competitive edge. The intetion of this research was to determine the influence of corporate governance on performance of public benefit organizations operating within Migori County. The study was underpinned on stakeholder theory, resource dependency theory, together with agency theory which helped in prediction of the relationship that existed between variables. The present research was experimental and employed use of longitudinal research design. The study was interested in carrying out a survey on all the 36 PBOs operating in Migori County as at the time of study.The present research involved use of secondary data which was drawn from the annual reports and available records for a period of two (2) years 2019 and 2020. Collected data was analyzed through use of descriptive and inferential statistics. The findings revealed that board size and board composition individually influenced organizational performance of PBOs significantly. The results of the joint effect indicated that only board composition was found to influence organizational performance of PBOs in Migori County. On contrary, board independence and board size were not found to significantly affect organizational performance in the joint effect. The study therefore, concludes that corporate governance has an impact on the organizational performance of public benefit organizations. Thus, recommending that the board of directors, shareholders and owner managers of PBOs should review the structures of corporate governance regularly.