The effect of board of trustees diversity on the financial performance of segregated pension funds in Kenya
Empirical research has been carried out on the relationship between board diversity and firm’s performance but the researchers findings have revealed mixed results, either positive, negative or no relationship at all (Randoy et al 2006). The objective of the study was to establish the effect of board of trustee’s diversity on financial performance of segregated pension funds in Kenya. This study employed a quantitative approach. The target population was all the 38 registered schemes administered by Liaison Financial Services. The study applied secondary data which was extracted from the specific pension funds annual reports and accounts for the five year period from 2010 to 2014. Numerical data collected was coded and entered and analyzed using a computer Statistical Package for Social Scientists (SPSS) programme. Frequency tables with varying percentages will be used to present the finding. The study showed a positive relationship between financial performance and education level and professional experience of the board executives. Whereas, the gender and average age of the board members had a negative correlation to financial performance of the segregated pension funds in Kenya. The study similarly established that there is a linear relationship between Returns on Assets and Cash Deposits, Government Securities, Corporate bonds, and Other Investments had a similar relationship but the strength of the correlation was found to be weak.
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