dc.description.abstract | The study focused on corporate governance and firm value of firms listed at the
Nairobi Securities Exchange. The study sought to find out the relationship between
corporate governance attributes of board size, board composition, CEO duality, and
audit committee composition compared against measures of firm value such as Return
on Assets and Market to book values of quoted firms.
The data was analyzed using regression analysis to build the relationship between
corporate governance attributes and firm value. Descriptive research methodology
was adopted. The study found that corporate governance attributes have a significant
influence on Return on Assets while corporate governance attributes have an
insignificant influence on Market to book value ratio as measures of firm value.
However, audit committee as a corporate governance attribute significantly stood to
influence both Returns on Assets and Market to book value ratio as measures of firm
value. This depicts the idea of more external members in the audit committee than
insider ones thus enhancing corporate governance through external independent
directors and brings new dimension for effective running of a corporate entity thereby
propelling a firm’s corporate entrepreneurship and competitiveness. | en_US |