| dc.description.abstract | The mam objective of this study was to investigate the effects of Corporate Governance
on the financial performance of listed companies at (NSE) . Specifically, this study
examined board size, board composition, CEO duality and leverage and how they affect
the financial performance of listed Companies at (NSE). Firm performance was measured
using Return on Assets (ROA) and Return on Equity (ROE). This study adopted a descriptive
research design. The study population was all those Companies which were quoted on the
Nairobi Securities Exchange as at December 2012.Secondary data were collected using
documentary information from Company annual accounts for the period 2008 to 2012.
Both descriptive and inferential statistics were used. Data was analyzed using a multiple
linear regression model. The study found that a strong relationship exist between the
Corporate Governance practices under study and the firms' financial performance. There was
a positive relationship between board composition and firm financial performance. However,
the most critical aspect of board composition was the experience, skills and expertise of the
board members as opposed to whether they were executive or non executive directors.
Similarly, leverage was found to positively affect financial performance of insurance firms
listed at the NSE. On CEO duality, the study found that separation of the role of CEO and
Chair positively influenced the financial performance of listed firms. | en_US |
