Loading...
Please wait, while we are loading the content...
Similar Documents
Effect of corporate Governance Practises on Financial Performance of Listed Agricultural Firms in the Nairobi Securities Exchange, Kenya.
| Content Provider | Semantic Scholar |
|---|---|
| Author | Ngwenze, Miriam K. Kariuki, Morris Irungu |
| Copyright Year | 2017 |
| Abstract | Miriam K. Ngwenze*, Morris Irungu Kariuki** *MBA Student, University of Nairobi. **Lecturer, Department of Finance and Accounting, University of Nairobi. ______________________________________________________________________________________ Abstract: The aim of this research was to determine the influence of corporate governance practices on financial performance in listed agricultural companies in Kenya. The corporate governance practices included board of directors' composition and size, independence of board and audit committees. The researcher used a descriptive correlation research design to determine the relationship between corporate governance practices and financial performance. The population comprised of all the seven firms that were listed in the Nairobi Securities Exchange (NSE) in the period 2012-2016. The data set comprised of secondary data collected from annual reports. A multiple regression model of financial performance against corporate governance practices was applied. It was found that some companies had violated the Capital Market Authority (CMA) Act threshold of three directors in the audit committee while other had poor board composition. Also breached was the benchmark set by the CMA Act for the independence of directors. The study established that corporate governance practices have no significant influence on ROE and ROA of listed agricultural firms in Kenya. However, it has significant influence on debt equity ratio. The findings concur with previous evidence from empirical studies on corporate governance, indicating that adoption of the various corporate governance practices by listed agricultural firms plays a part in the improvement of their performance financially. |
| Starting Page | 106 |
| Ending Page | 115 |
| Page Count | 10 |
| File Format | PDF HTM / HTML |
| DOI | 10.9790/5933-080304106115 |
| Volume Number | 8 |
| Alternate Webpage(s) | http://www.iosrjournals.org/iosr-jef/papers/Vol8-Issue3/Version-4/M080304106115.pdf |
| Alternate Webpage(s) | https://doi.org/10.9790/5933-080304106115 |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |
