INFLUENCE OF BOARD SIZE ON THE FINANCIAL PERFORMANCE OF WATER COMPANIES UNDER LAKE VICTORIA SOUTH WATER SERVICES BOARD
Abstract
The interest and focus in the modern corporate governance practices, especially on matters accountability received much attention following the high-profile collapses of mega firms in the recent past due to accounting fraud. This study aimed at establishing the influence of board size on the financial performance of water companies under Lake Victoria South Water Services Board for the period 2011-2015. Causal study design and a census was preferred since the number of water companies in the nine urban based water service providers within the Lake Victoria South Water Services Board was few. Data was collected using questionnaires conveyed to the respondents through drop and pick technique and was analyzed through descriptive and inferential statistics. Regression analysis aided in the establishment of the relationship and variation between the study variables, and results presented in tables. The study established that there was a significant and positive relationship between board size and financial performance at 95% confidence level. The study recommended that water companies in Kenya should carefully consider the right size of their boards that would steer them to the realization of objectives while meeting the needs of various stakeholders and stabilized operations and performance of the firms.
Key Words: Board Members, Board Executive, Non-executive, Financial Performance
CITATION: Cherotich, M., Tibbs, C. Y., & Kirui, C. Influence of board size on the financial performance of water companies under Lake Victoria South Water Services Board. The Strategic Journal of Business & Change Management, 5(4), 1911-1920.
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DOI: http://dx.doi.org/10.61426/sjbcm.v5i4.997
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