Relationship between board structure and liquidity of listed companies in the Nairobi securities exchange
The board of directors plays a very important role in determining the strategic direction of any company which eventually impacts on the financial perfomance of any company. The objective of this study was to determine the relationship between liquidity of listed companies and board structure. The population of the study comprised all listed at the NSE. Census survey was used in the study. Secondary data was collected from annual reports of these companies while regression analysis was used to determine the relationship between liquidity and board structure. The study found that the proportion of independent directors and board members in audit committee have a negative but insignificant effect on the liquidity of listed companies while the proportion of women in the board has a positive but insignificant relationship with liquidity of listed companies. The study recommends that shareholders of companies that are keen on improving liquidity of their companies do not emphasize on board structure as a means of strengthening liquidity position of the companies.