Relationship between corporate governance structures and performance of insurance companies in Kenya
Abstract
This paper investigates whether corporate governance affects performance of
Insurance companies in Kenya. Data on corporate governance characteristics
and performance are constructed and regression analysis performed. The study
includes five specific corporate governance characteristics. Thirty-three
insurance companies were examined to establish the relationship between
corporate governance and performance,
This research find evidence that the size of the board and insider holding on
one hand have an association with performance but does not form any evidence
that the external board, individual shareholding and institutional shareholding
have any influence on performance. It thus supports the commonly held view
in the literature that the small size of the board has a positive effect on
performance. The negative relationship found in this research between
performance and the number of external directors may be a peculiar one in Kenya for it is not consistent with the many past research findings. However,
specific corporate governance features found in the insurance industry in
Kenya play an important role in determining performance. The conclusion is
that the size of the board and insider holding on one hand have an association
with performance but does not find any evidence that external board,
individual holding and institutional holding have any influence on
performance of insurance companies.
Citation
Masters of business administrationSponsorhip
University of NairobiPublisher
school of Business, University of Nairobi