The Strategic Role Played By Corporate Governance Mechanisms in Enhancing Sustainable Corporate Performance A Survey of Commercial Banks in Kenya

Abstract

Purpose: The general purpose of study was to establish the strategic role that corporate governance mechanisms play in the sustainable corporate performance of commercial banking sector in Kenya. Methodology: The study adopted a descriptive research design. The actual population was also the targeted population was 43 banks since the banks were all accessible. A total of 17 banks were used as an actual sample representing 37% of the total population. The researcher in this study used questionnaire as a data collection tool. The data collected was analyzed by use of both inferential and descriptive statistics. Results: Study findings indicated that, there was an insignificant relationship between percentage mean of independent directors, top 10 shareholding and ROA. In addition there was an insignificant relationship between board size, percentage mean of independent directors, top 10 shareholding and individual shareholding, and Customer satisfaction index. Unique contribution to theory, practice and policy: The study recommends that, commercial banks in Kenya should continue adhering to corporate governance requirements since it may have positively contributed to sustainable performance.

Description

Keywords

Corporate Governance, Performance, Board size

Citation

Kariuki, S., Njenga, K., & Irungu, D. N., (2017). The Strategic Role Played By Corporate Governance Mechanisms in Enhancing Sustainable Corporate Performance A Survey of Commercial Banks in Kenya. Journal of Strategic Management.. Vol.1, Issue 2 No.2, pp 24 - 45

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