| dc.description.abstract | The formation of a board of directors in a corporation is important as an internal control
mechanism to oversee the conduct of the owner-manager and managers and prevent them
from endangering vested parties’ The role played by the board is critical to firm
performance as the boards discharge their fiduciary responsibilities of leading and
directing the firm. The main objective of this study was to establish the relationship
between board characteristics and firm performance of listed firms at the Nairobi
Securities Exchange. Specifically this study examined female representation, age,
educational qualification, occupational experience, board independence and nationality
and how they affect the firm performance of listed firms in Kenya. Firm performance was
measured using Return on Equity (ROE). This study adopted a descriptive research
design and data was analyzed using a multiple linear regression model. The study
population was all the firms whose stocks were trading at the Nairobi Securities
Exchange and which had reported their financial results for the year 2014, which were 61
firms. In this study emphasis was given to secondary data for companies listed at the
NSE. The study found a positive relationship between all the six variables and firm
performance of companies listed at the NSE. The study therefore recommends that
stakeholders in listed companies should take into account the board characteristic issues in electing board of directors to minimize stakeholder conflicts, improve managerial functions and overall performance. | en_US |
