Influence of Corporate Governance on Efficiency at Commercial State Corporations in Kenya
DOI:
https://doi.org/10.47941/jepm.3896Keywords:
Corporate Governance, Efficiency, Public Sector Performance, State-Owned EnterprisesAbstract
Purpose: The present study therefore sought to establish the influence of corporate governance on efficiency at commercial state corporations in Kenya. The specific objectives of the study were to: assess the association between board composition and efficiency at commercial state corporations in Kenya; determine the influence of board representation on efficiency at commercial state corporations in Kenya; examine the effect of internal control practices on efficiency at commercial state corporations in Kenya; and evaluate the impact of period of tenure on efficiency at commercial state corporations in Kenya.
Methodology: A cross-sectional research design was adopted. The target population comprised top-level managers, middle-level supervisors, and junior employees from all 33 commercial state corporations in Kenya, giving a total of 165 respondents. A census approach was applied given the manageable size of the population. Primary data were collected using semi-structured questionnaires, while secondary data were obtained from company records. Expert opinion was used to ensure validity, and Cronbach’s alpha was applied to test reliability. Data were analysed using descriptive statistics, including means and standard deviations, while multiple regression analysis was used to establish the relationship between corporate governance variables and efficiency. The findings were presented in tables and figures.
Findings: The study found that board composition, board representation, internal control practices, and period of tenure all had a positive and significant influence on efficiency, jointly accounting for 73.8% of the variations in efficiency of commercial state corporations.
Unique Contribution to Theory Practice and Policy: Corporations should prioritize the recruitment of independent directors who are free from management influence to improve objectivity and oversight.
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