Influence of corporate governance on performance of organizations a case of alliance capital partners limited, Nairobi, Kenya.

Abstract

The main objective of the study was to look into the Influence of Corporate Governance on Performance of Organizations. A Case of Alliance Capital Partners Limited, Nairobi-Kenya. Corporate governance in this case is the independent variable while the performance of the organization is the dependent variable. The specific objectives of the study were: to assess how board characteristics influence performance of organizations; to examine how ownership identity influences performance of organizations; to investigate how managerial discretion influence performance organizations and to evaluate how strategic decision making process influence performance of organizations. The primary focus for the 21st Century is Corporate Governance. Almost all economies have introduced corporate governance codes or enacted new company laws as in the United States of America following the Enron debacles. Corporate governance is about the way power is exercised over corporate entities. It covers the activities of the board and its relationship with the shareholders or members and those managing the enterprise, as well as with the external auditors, regulators and other legitimate stakeholders. This study would be great to the unlisted private companies in emerging markets who will use the recommendations of this study to improve performance and make their organizations more viable and profitable. The research project report explored the influence of corporate governance on performance of organizations enterprises in Africa and more so in Kenya. The theoretical framework addressed the corporate governance agency theory while the conceptual framework covered the main features (aspects, dimension, factors, and variables) of the study and their presumed relationship. Census was adopted in gathering the information from respondents. The design was preferred since the target population of 14 respondents which was small and manageable. Also the design gave all the respondents equal chances of responding to the questionnaires irrespective of their gender and status they held in the organization. The study employed open-ended and closedended questionnaires which were administered to the respondents and a structured interview schedule was preferred to collect specific information. Once the research was conducted a descriptive analysis was carried out for the primary data with the help of the statistical Package for Social Sciences (SPSS). The highest level of ethical consideration was employed in carrying out this study. Data was checked for errors, coded and classified accordingly. Descriptive statistics of means and percentages was used in analyzing the data. The findings were presented in the frequency tables. From the study the summaries and recommendation were made for future use in basic and applied research and for policy formulation on corporate governance and performance for Alliance Capital Partners Limited and Kenya at large.