Corporate governance and performance of sugar producing companiesies in Kenya
Abstract
Corporate governance is concerned with the running of an organization in a way that guarantees that its
owners or stockholders receive a fair return on their investments while the expectations of other
stakeholders
are also met. The study sought to examine the relationship between corporate governance
practices and performance of sugar producing companies in Kenya. The study intended to establish the
corporate governance practices adopted by the companies and the inf
luence of these practices on their
performance. Through a cross
-
sectional survey of 11 companies, data were gathered using a structured
questionnaire and analyzed using both descriptive and inferential statistics. The results indicate that all the studied
companies practice some form of corporate governance although the degree of adoption differ
across them. The study also revealed that board decisions are not influenced by founder members and that
it was not common for board members to engage in financial
transactions with the companies. The results
of hierarchical regression analysis show that overall, there is a positive and statistically significant
influence of corporate governance practices on performance of the sugar producing companies. The study
dra
ws a conclusion that a combination of good corporate governance practices is responsible for a large
percentage of good performance achieved by the sugar companies. Individual corporate governance
practices acting on their own do not always lead to improve
d performance. Based on the findings of the
study, recommendation for policy and practice are made as well as suggestions for further research
Publisher
University of Nairobi