dc.contributor.author |
Shunu, Adan Haji |
|
dc.date.accessioned |
2018-07-18T09:49:32Z |
|
dc.date.available |
2018-07-18T09:49:32Z |
|
dc.date.issued |
2017-12-17 |
|
dc.identifier.citation |
SHunu, Adan Haji (2017). Effect of Board Composition on Financial Performance of Listed Firms in Nairobi Securities Exchange (Masters Thesis). Garissa: Garissa University) |
en_US |
dc.identifier.uri |
http://localhost:8080/xmlui/handle/1/193 |
|
dc.description.abstract |
This study sought to establish the effect of board composition on financial performance
of listed firms in Nairobi Securities Exchange. The study objectives were to determine
the effect of board size, independent directors, multiple directorships and financial
expertise of directors on financial performance. Firm performance was measured using
return on assets (ROA). This study was guided by agency theory, upper echelon theory.
The study used exploratory research design. The study employed panel approach for a
period covering ten years from 2006-2015. The target population comprised of all 68
listed firms in Nairobi Securities Exchange. The study used secondary data which was
obtained from annual reports and NSE bulletins using data collection schedule to
address recent corporate scandals, major accounting failures while other firms going
into receivership and collapsing due to poor financial performance. Data was analyzed
using both descriptive and inferential statistical methods. Specifically, multiple
regression was used to test the hypotheses. The study found a significant positive effect
of board size (β= 2.325; p<0.05), board independence (β= 2.112; p<0.05), multiple
directors (β= 2.931; p<0.05 and financial expertise of directors (β= 2.114; p<0.05) on
firm financial performance of listed firms in NSE. The study adds value on the
understanding of the effect of board composition on financial performance in listed
firms in Kenya. The study also provides a basis for further research as future scholars
will find this study fruitful in making conclusions. The study recommends the
appointment of more board independent directors to the board and financial experts to
be appointed as directors to the boards. In Kenya, several initiatives have been taken
by the government to strengthen the board structure and composition in order to create
good dynamics of board meetings discussion which will lead to better firm performance
and create good value creation to shareholders. Future research could also explore on
board characteristics and firm performance by using different research method. |
en_US |
dc.language.iso |
en |
en_US |
dc.publisher |
Garissa University |
en_US |
dc.relation.ispartofseries |
Masters Theses; |
|
dc.subject |
Financial Performance |
en_US |
dc.subject |
Board Membership |
en_US |
dc.subject |
Listed Firms |
en_US |
dc.subject |
Nairobi Securities Exchange |
en_US |
dc.title |
Effect of Board Composition on Financial Performance of Listed Firms in Nairobi Securities Exchange |
en_US |
dc.type |
Thesis |
en_US |