Effect of Corporate Governance on Organizational Performance of State Corporations in Kenya
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Date
2015-11Author
Abdinassir, Ali A
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
The objective of the study was to determine the effect of corporate governance on
organizational performance of State Corporations in Kenya. The study population was
184 state corporations out of which 60 state corporations were selected for the study. The
study used secondary data from published annual reports and financial statements for the
year 2010-2014. The study used a regression model to analyze the relationship between
organizational performance and corporate governance practices. Control variables
namely firm size and age of the firm were used in the regression model. The study
findings showed a positive relationship between corporate governance practices and
organizational performance of state corporations in Kenya. The coefficient of correlation
(R) shows a strong positive relationship between variables (0.895). As for the corporate
governance variables, the most influential is board size with a regression coefficient of
(0.366) while insider shareholding had the least impact on organizational performance
with a regression coefficient of (0.018) and a p-value of (0.097). Among the control
variables, firm size had a strong correlation (1.213) while age of the firm had a weak one
(0.412). It can be concluded that corporate governance affects the organizational
performance of state corporations in Kenya. Therefore corporate governance is necessary
to achieve proper functioning of State Corporation and achieve its stated vision and
mission if well implemented.
Publisher
University of Nairobi