| dc.description.abstract | None of the studies done in Kenya has focused on effects of Corporate Governance on
the financial performance in Kenya focused on the telecommunication industry
despite its strategic role in enhancing the economic growth of Kenya. Informed by
this knowledge gap, the study attempted to answer the following research question:
what are the effects of Corporate Governance on the financial performance of
telecommunication firms in Kenya? This study adopted a descriptive survey research
design. The target population was telecommunication companies in Kenya which
included Safaricom limited, Airtel, Telkom Kenya limited and YU. For the purpose of
this study, the researcher used secondary data. Descriptive statistics was used to
analyse quantitative data. Regression analysis was used to test the relationship
between corporate governance and Financial Performance. From the findings, board
size negatively affected the financial performance of the telecommunication firms in
Kenya. The board structure as a corporate governance practice positively affected the
financial performance. The CEO duality did not affect the financial performance. The
board independence negatively affected the financial performance. The insider
ownership positively affected the financial performance. The study recommends that
the shareholders’ should not only reduce their firms’ board sizes but also shift their
focus to the quality of the board of directors. The shareholders of the
telecommunication firms should strive to create an optimal board structure that
comprises of representatives of all the crucial stakeholders in the various subcommittees
of the board. The shareholders should strive to create a board of directors
with more dependent directors as opposed to independent directors. The employees
and other internal parties should be allowed to hold some stake in the firms to give
them a sense of ownership and commitment in running the affairs of the companies. | en_US |
