Challenges of Implementing Lord Cadbury's Principles of Corporate Governance in Investment Banks in Kenya
Abstract
The Cadbury report of 1992 outlines the three fundamental principles of corporate
governance as: Openness, Integrity and Accountability. These principles arc relevant
to both public and private entities. This study set out to determine the challenges of
implementing Lord Cadbury's Principles of Corporate Governance in Investment
Banks in Kenya.
The researcher applied a descriptive and inference research design. The target
population of this study consisted of a total of 60 managers working at the twelve
Investments Banks in Kenya. The study used Primary data which was obtained
through self-administered questionnaires with closed and open-ended questions. A
questionnaire was used to collect primary data for this study.
The study established that corporate governance applied to the investment banking
sector since the agency problems were likely to arise between the principles who were
the shareholders and the managers who was agents. Directors' service contracts did
not exceed three years without shareholders' approval and investment banks
experienced the challenges of legal systems, Culture of the country, regulatory and
supervisory systems , the influence of the stakeholders in the process of
implementating the Lord Cardbury's principles, performance standards applied and
compensation and remuneration of executives also influenced
Publisher
University of Nairobi
Subject
Corporate GovernanceRights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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