Abstract: The literature on corporate governance has stirred a lot of debate and led to the large body of theoretical and empirical research. The study examined how the corporate governance of selected public companies in Kenya affects the financial performance during the period 1998 to 2004. Financial performance was measured by use of profitability. The study mainly focused on public listed in Nairobi securities exchange. A sample of public 26 companies was drawn using purposive sampling. Both descriptive and inferential statistics were used. Data was analyzed using a multiple linear regression model. The study found that a strong relationship exist between the Corporate Governance practices under study and the firms’ financial performance. There was a positive relationship between board members and firm financial performance. Thus the study reveals that generally corporate governance is important in the financial performance of the company.
Keywords: corporate governance, board members, management, audit committee and financial performance.
Title: Effect of Corporate Governance Practices on Financial Performance of Public Limited Companies in Kenya
Author: OCHOI ONG’ONDO DOMINIC, DR. FLORENCE MEMBA
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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