BOARD SIZE PRACTICES AND PERFORMANCE OF COUNTIES, A CASE OF COUNTY GOVERNMENT OF BUNGOMA; KENYA
Abstract
Corporate governance has dominated performance policy agenda in developed market economies for more than a decade and African continent has gradually adopted it on their policy agenda in both private and public sector organizations. Performance as a measure of an outcome of an enterprise raises the comparative understanding of how corporate governance practices work along with performance of a given organization. Most of public organizations are services oriented and hence measuring the performance of such organizations is a bit complex, however, use of corporate governance practices is of help to the management. Hence, the objective of the study was; to evaluate the effect of Board Size Practices on Performance of the County Government of Bungoma; Kenya. This study applied descriptive survey research design. The study used a structured questionnaire on collection of primary data from the County Government of Bungoma; Kenya. Pilot study was done on the County Government of Kakamega; Kenya, hence this enabled for testing of the reliability and validity of the research instrument. The study descriptive and inferential statistics was analyzed by use of SPSS software version 24, further; a regression equation model was developed to test the relationships between the variables. The results of the findings indicated Board Size Practice influenced Performance of the County Government of Bungoma; Kenya. The study recommended for County Governments to embrace the use of Board Size Practice inclusive within corporate governance functions, since it improves the Performance. The study recommended for further studies on the same considering same variables but different methodologies.
Key words: Board Size, Corporate Governance, Performance
CITATION: Wafukho, J. M., Kadima, M. J., & Juma, D. (2022). Board size practices and performance of counties, a case of county government of Bungoma; Kenya. The Strategic Journal of Business & Change Management, 9 (2), 156 – 167.
Full Text:
PDFReferences
Ahmed, S. (2016). Effective not-for profit management: Context, concepts, and competencies. CRC Press Taylor & Francis: New York.
Abate, M., Christidis, P., & Purwanto, A. J. (2020). Government support to airlines in the aftermath of the COVID-19 pandemic, Journal of Air Transport Management, 89, 101931.
Ashraf, B. N. (2020). The economic impact of government interventions during the COVID-19 pandemic: International evidence from financial markets. Journal of Behavioral and Experimental Finance, 27, 100371
Boyd, B. (2015). CEO Duality and Firm Performance: A Contingency Model. Strategic Management Journal, 16(4), 301- 312
Brandsen, T., & Pestoff, V. (2016). Co-production, the third sector and the delivery of public services: An introduction. Public Management Review, 8(4), 493–501.
Brick, I. E., Palmon, O., & Wald, J. K. (2006). CEO compensation, director compensation, and firm performance: Evidence of cronyism? Journal of Corporate Finance, 12(3), 403–423
Gitari, J. (2015). Relationship between Corporate Governance Practices and Financial Performance of Kenya Corporative Creameries, MBA project; University of Nairobi
Cannella, A. (2014). Are Family Firms Really Superior Performers? Journal of Corporate Finance, 13(5), 829-858.
Cassia, F & Magno, F. (2017). Public services co[1]production: exploring the role of citizen orientation. International Journal of Quality and Service Sciences, 1(2), 334 – 343.
Clarkson, M. (2015). A Stakeholder Framework for Analyzing and Evaluating Corporate Social Performance, Academy of Management Review, 20, (1), 92-117
Copeland, D. (2015). Business strategy orientation, information systems orientation and strategic alignment, Information Systems Research, 8 (2), 125–150
Croci, E., Hertig, G., Khoja, L., & Lan, L. L. (2020). The advisory and monitoring roles of the board: Evidence from disruptive events. SSRN Electronic Journal, April
Callen, J.L. & Fang, X. (2013), “Institutional investor stability and crash risk: Monitoring versus short-termism?”, Journal of Banking and Finance, 37 ,(8), 3047-3063.
Cheng, S. (2008), “ Board size and the variability of corporate performance”, Journal o f Financial Economics, 87, 157–176.
Delgado-García, J. B., De La Fuente-Sabaté, J. M. & De Quevedo-Puente, E. (2010), “Too negative to take risks? The effect of the CEO's emotional traits on firm risk”, British Journal of Management, 21(2) 313-326
Djerbi, C. & Anis, J. (2015), “Boards, retained ownership and failure risk of French IPO firms”, Corporate Governance: The International Journal of Business in Society, 15 (1), 108-121.
Dawar, V. (2014). Agency theory, capital structure, and firm performance: Some Indian evidence. Managerial Finance, 40(12), 1190–1206.
Detthamrong, U., Chancharat, N., & Vithessonthi, C. (2017). Corporate governance, capital structure, and firm performance: Evidence from Thailand. Research in International Business and Finance, 42, 689–709.
Delgado-García, J. B., De La Fuente-Sabaté, J. M. and De Quevedo-Puente, E. (2010), “Too negative to take risks? The effect of the CEO's emotional traits on firm risk”, British Journal of Management, 21 (2), 313-326
Eroğlu, H. (2020). Effects of COVID-19 outbreak on the environment and renewable energy sector, Environment, Development, and Sustainability, 20(4), 8
Finkelstein, S.& Hambrick, D. (2015). Strategic Leadership: Top executives and their effects on organizations. West Publishing
Fama, E. F. & Jensen, M. C. (1983), “ Separation of ownership and control”, Journal of Law and Economics, 26 ( 2), 301-326.
Guney, Y., Karpuz, A., & Komba, G. (2020). The effects of board structure on corporate performance: Evidence from East African frontier markets. Research in International Business and Finance, 53, 101-222.
Geppert, M., Dörrenbächer, C., Gammelgaard, J., & Taplin, I. (2013), “Managerial risk taking in international acquisitions in the brewery industry: Institutional and ownership influences compared”, British Journal of Management, 24 (3) 316-332.
Harjoto, M. A., Laksmana, I. & Yang, Y. (2014), “Board diversity and corporate risk taking”, Working Paper, Wake Forest University.
Hermuningsih, S., Kusuma, H., & Cahyarifida, R. A. (2020). Corporate governance and firm performance: An empirical study from Indonesian manufacturing firms. The Journal of Asian Finance, Economics, and Business, 7(11), 827–83
Kihara, N. (2016). Relationship between corporate governance rules and performance of firms listed in the Nairobi Stock Exchange. International Journal of Social Economics, 25(6), 1310-1325.
Klapper, L. & Love, I. (2014). Corporate Governance, Investor Protection, and Performance in Emerging Markets, Journal of Corporate Finance, 10(5),
Khatib, S. F. A., Abdullah, D. F., Hendrawaty, E., & Yahaya, I. S. (2020). Corporate governance mechanisms and capital structure, Journal of Critical Reviews, 7(16), 463–471
Khatib, S. F. A., Abdullah, D. F., Kabara, A. S., Hazaea, S. A., & Rajoo, T. S. (2020). Do debts have any impact on governance bundle and agency costs? Over- governance hypothesis, Technium Social Sciences Journal, 9(1), 384–396
Liu, H., Yi, X., & Yin, L. (2020). The impact of operating flexibility on firms’ performance during the COVID-19 outbreak:
Lashgari, M. (2004). Corporate governance: theory and practice. The Journal of American Academy of Business, 5(1/2), 46-51.
Mankins, M. & Rogers, P. (2010). The Decision[1]Driven Organization. Harvard Business Review, June.
Mishra, S. & Mohanty, P. (2014). Corporate governance as a value driver for firm performance: evidence from India Corporate Governance. The international journal of business in society, 14(2), 265-280
Ndegwa, M. (2016). Equity Pattern, Corporate Governance and Performance: A Study of India‘s Corporate Sector. Journal of Economic Behavior &Organization, 59(1), 29- 44
Ngumi, R. (2016). Management Ownership and Market Valuation: An Empirical Analysis. Journal of Financial Economics, 20, 293-315.
Ntoiti, L. (2013). The County; Understanding Devolution and Governance in Kenya. Centre for Leadership, Education and Development International. Nairobi, Kenya
Ojo, O. (2013). Impact assessment of corporate culture on employee job performance, Business Intelligence journal, 2, (2) 388-97
Okiiya A. S., Kisiangani, B. W., & Oparanya, W. (2015). Change Management and Performance of Public Secondary Schools in Siaya Sub County. International Journal of Scientific & Technology Research 4, (4), 162-176.
Okwiri, J. (2016). An Analysis of Board of Director Size and Composition in Regulatory State Corporations, Journal of Business Research, 30(3), 271-282.
Shahwan, T. M. (2015). The effects of corporate governance on financial performance and financial distress: Evidence from Egypt. Corporate Governance (Bingley), 15(5), 641– 662
Sarbanes-Oxley Act, (2002), “Sarbanes-Oxley Act” available at http://www.soxlaw.com/
Saunders A., Strock E. and Travlos N.G. (1990), “ Ownership structure, deregulation, and bank risk taking”, Journal of Finance, 45 ( 2), 643-654.
Sun, J. and Liu, G. (2014), “Audit committees' oversight of bank risk-taking”, Journal of Banking and Finance, 40, 376-386
Tauringana, V. & Chamisa, E. (2014). Corporate Boards, Ownership Structure and Firm Performance in an Environment of Severe Political and Economic Uncertainty: Bradford University, School of Management.
Wesley, C. (2010). The impact of stewardship on organization performance: a family ownership and internal governance perspective.
Weitzner, D. & Deutsch Y. (2015). Understanding Motivation and Special Influence in Stakeholder Priorization, Schulich School of Business, York University. SAGE Journal, 36,(10), 1337 – 1360,
Waheed, A., & Malik, Q. A. (2019). Board characteristics, ownership concentration, and firms’ performance: A contingent theoretical based approach. South Asian Journal of Business Studies, 8(2), 146–165.
Wafula, K. (2013). Emerging Trends Shaping Contemporary Business Strategy, Prime Journals of Business Administration and Management, 2(9), 673-679.
World Bank, (2012). Devolution without disruption– pathways to a successful new Kenya, A publication of the Australian AID, Nairobi.
World Bank. (2015). Devolution Without Disruption: Pathways to a Successful New Kenya. Nairobi, Kenya: World Bank and Australian AID
Yasser, Q. R., Entebang, H., & Abu Mansor, S. A. (2011). Corporate Governance and Firm Performance in Pakistan: The case of Karachi Stock Exchange (KSE)-30, Journal of Economics and International Finance, 3(8), 482-491.
Yahaya, I. S., Senin, A. B. A., Yusuf, M. M., Khatib, S. F. A., & Sabo, A. U. (2020). COVID-19 pandemic and global business challenge are how to survey with business models: A systematic literature review, Journal of Public Value and Administrative Insight, 3(3), 82–91.
Zahra, S. A. & Pearce, J. A. (1999). Board of Directors and Corporate Financial Performance, A Review and Integrative Model, Journal of Management 15, pp.29 -300
Zyad, M. (2014). The Effect of Corporate Governance on Firm Performance in Jordan. A thesis submitted in partial fulfillment for the requirements for the degree of PhD, at the University of Central Lancashire
DOI: http://dx.doi.org/10.61426/sjbcm.v9i2.2257
Refbacks
- There are currently no refbacks.
This work is licensed under a Creative Commons Attribution 3.0 License.
PAST ISSUES:
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.