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Influence of Corporate Governance on Financial Performance of Commercial Banks in Kenya

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dc.contributor.author Nganga, Belinda
dc.date.accessioned 2018-01-12T10:27:00Z
dc.date.available 2018-01-12T10:27:00Z
dc.date.issued 2017
dc.identifier.uri http://erepo.usiu.ac.ke/11732/3510
dc.description A Research Project Report Submitted to the Chandaria School of Business in Partial Fulfilment for the Requirement of the Degree of Master of Business Administration (MBA) en_US
dc.description.abstract The purpose of this study was to establish whether corporate governance practices do influence financial performance of commercial banks in Kenya. The study was guided by the following research questions: How does the ownership structure of commercial banks influence the banks financial performance? How does board diversity affect financial performance of commercial banks? How does code of corporate governance influence performance of commercial banks? Findings on ownership structure show that there exists a statistically significant relationship between ownership of commercial banks and financial performance, r (0.518); p < 0.01. All components considered under this research question including block ownership and institutional ownership were important in enhancing financial performance Findings on board diversity show that there exists a statistically significant relationship between board diversity and financial performance of commercial banks in Kenya, r(0.309); p < 0.05. All components considered for this research question including board gender diversity, board size, board independence, and board-director duality were all important in enhancing financial performance of commercial banks Findings on code of corporate governance shows that there exists a statistically significant relationship between code of corporate governance and financial performance of commercial banks in Kenya. Agency conflict and code of corporate objectivity were all considered and found to have influence on financial performance of commercial banks This study concludes that both institutional and block ownership are relevant, and important in enhancing commercial banks financial performance., The variance is in how the structure do leverage of their inherent strength to advance financial performance objectives. This study also concludes that all the components considered under board diversity, including board gender diversity, board size, board independence significantly contribute to enhancing commercial banks financial performance. Finally, the study also concludes that agency conflict and code of objectivity are significant and important in enhancing financial performance of commercial bank. This study recommends that management of commercial banks should invest more in systems and structure that enhance both block ownership and institutional ownership, since they are both relevant within the commercial banking sector. The study recommends that board diversity components, including gender diversity, board size, board independence, and board-director duality are very important to financial performance and need to be strengthened. Finally, the study recommends that commercial banks should continuously review and update their agency conflict policies in line with the changing dynamics within the banking sector. en_US
dc.language.iso en en_US
dc.publisher United States International University - Africa en_US
dc.subject Corporate Governance en_US
dc.subject Financial Performance en_US
dc.subject Commercial Banks in Kenya en_US
dc.title Influence of Corporate Governance on Financial Performance of Commercial Banks in Kenya en_US
dc.type Software en_US


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