Link between corporate governance, company size and company announcements on disclosure compliance for companies quoted at the NSE
Abstract
This study seeks to assess the link between company size, corporate governance and company
announcements on disclosure compliance motivated by the CMA requirement that companies
have to comply with their Guide book on corporate governance. The study was seeking to
introduce more variables to disclosure compliance than ones advocated by CMA as corporate
governance. The main reason was to check on the excess that have come along due to financial
innovation and other issues that have resulted from the time companies were only required to
disclose information on corporate governance. This study was facilitated by the use of secondary
data from annual reports of quoted companies from the NSE handbook and the CMA guidelines
report with a sample of 23 companies in the non financial segments. This study was conducted
though the scoring of the main variables being investigated with the total scored been regressed
to get the final findings. From the findings its can be noted that all companies have been
complying with the corporate governance disclosures but with the introduction of the other
variables its notes that most of the firms 84 % did comply when it comes to corporate
governance and board size but only 17.2% (4.3% of the sample population) did comply with the
CMA regulations. There was also a positive colleration between company size and compliance
but a negative colleration with company announcements mainly due to the fact that company
announcements are a prerogative of the company's board and the law is not clear on what is or is
not to be announced.
Citation
Masters of business administrationSponsorhip
University of NairobiPublisher
School of business,University of Nairobi