Effects Of Corporate Governance On The Financial Performance Of Companies Listed In The Nairobi Securities Exchange

ABSTRACT

In recent times, interest in corporate governance in the African continent has assumed highest propositions. This is probably due to the great push from the developing countries to the African countries to embrace good governance in order to attract foreign investors and to improve shareholders value. The General objective of the study was to investigate the effect of corporate governance on the financial performance of companies listed in the Nairobi stock Exchange whereas the specific objectives were to find out the effects of board size on the financial performance of firms listed in NSE, to establish the effect of board composition on financial performance of firms listed in NSE, to ascertain the effects of ownership concentration on the financial performance of firms listed in NSE and to establish the effect of sustainable responsible business on the financial performance of companies listed in the NSE. This study utilized four main theories i.e. shareholder's model, stakeholder models, agency theory, management theory, stakeholders theory and stewardship theory. The study used longitudinal research design with the target population being companies listed in the Nairobi stock exchange since the year 2004 after the automation of the systems in the stock market. Secondary Data was collected from the capital markets authority library. Data collected was analyzed using SPSS regression analysis. Findings from the study revealed that the coefficient's p-values (p=0.001