Corporate governance and firm performance of financial institutions listed in Nairobi Stock Exchange
Financial Institutions in the Nairobi exchange have different mechanisms through which boards and directors are able to direct, monitor and supervise the conduct and operation of corporations and their management in a manner that ensures appropriate levels of authority, accountability, stewardship, leadership, direction and control different governance structures.' The question is, is there any relationship between corporate governance and firm performance. This study exammes whether the performance of Financial Institutions listed in Nairobi Stock Exchange is affected by the corporate governance practices put in place. The analysis is done by constructing a Governance Index as per Globe & Mail rankings using Data from the Financial Institutions and performance measure from annual reports. The empirical findings of this study are consistent with the guidance developed by capital Market Authority and Central Bank of Kenya that companies should endeavor to attain the highest possible level of corporate governance.