The relationship between financial performance and corporate governance: evidence from savings and credit co-operatives based in Nairobi
This study was about the relationship between Financial performance and Corporate Governance with specific reference to SACCO's operating in Nairobi. A sample of 98 SACCO's was selected from a population of 131 and a regression analysis was performed for purposes of data analysis to determine the relationship between the dependent and independent variables. Four dimensions of corporate governance practices (i.e. CEO duality, Gender diversity, Audit Committee, Board composition on gender, and Number of board meetings) were considered as independent variables and two on financial performance i.e. ROA as well as ROI as dependent variables in the regression model. The findings are that corporate governance did not have significant relationship on ROA but the same is reverse for ROI where it is revealed that there is significant relationship with dimensions of corporate governance used in the study. Specifically the corporate governance variable of Audit committee has higher positive relationship on ROI while that of Number of board committee meetings records a negative relationship.