| dc.description.abstract | Corporate governance is an area that has gained a lot prominence in the last few years. Much attention to corporate governance issues in emerging markets among policymakers and academics has focused on the role that governance play in improving access for emerging market companies to global portfolio equity. An increasing volume of empirical evidence indicates that well-governed companies receive higher market valuations. Improved governance structures and processes help ensure quality decision making, encourage effective succession planning for senior management and enhance the long-term prosperity of companies, independent of the type of company and its sources of finance.
Improving corporate governance contributes to the development of the public and private capital markets. Poor standards of governance, particularly in the area of transparency and disclosure have been a major factor behind instability in the financial markets across the globe. This study sought to assess the effect of the implementation of corporate governance practices on the performance of Savings and credit cooperative Societies. The broader objective of the study was however, to investigate the relationship between corporate governance practices and the performance of organizations.
The Study revealed that good corporate governance has a positive effect on the performance of organizations. Lack of it therefore leads to poor performance and ultimate collapse of organizations. Similarly, the leadership organizations have a key role to play in corporate governance. The study recommends that the organization should communicate the strategy to its members/shareholders so that they understand the direction which the organization is heading.
The organizations should also hold regular education for members so that they can understand more on how the organization is run and managed. It is also important for the board of directors to conduct regular reviews of the performance of the SACCO and know where to adjust accordingly. Finally, the board must recognize that to survive and thrive it has to ensure that the technology, skills and systems used in the SACCO are adequate to run the organization. The SACCO should constantly review and adopt the same in order to remain competitive | en_US |
