Ismahan Fuad, Dr. Ismail Shale Noor


Corporate governance essentially involves balancing the interests of a company's many stakeholders, such as shareholders, senior management executives, customers, suppliers, financiers, the government, and the community. The study sought to determine the effect of   corporate governance practices on performance of state corporations in Nairobi City County, Kenya.  The specific objectives were to determine effect of board transparency and board accountability on performance of state corporations in Nairobi City County County, Kenya The research adopted a descriptive research design. The unit of analysis was all the 248 state corporations in Nairobi City County, Kenya. The unit of observation for this study was 310 management staff of state corporations in Nairobi City County, Kenya. The sample size of 175 management staff was selected using Yamane 1967 formula. The study used questionnaires to collect primary data. Pilot was conducted with 18 management staff from state corporations in Nairobi city county, Kenya who did not participate in the final data collection. The study used construct and content validity. Cronbach’s alpha coefficient was used to measure questionnaire reliability. Questionnaires were coded and keyed into SPSS Version 28. Data analysis was analyzed to generate both descriptive (frequency, percentage, mean) and inferential statistics (correlation, and regression). Findings were tabulated. Results showed that; there is a strong significant relationship between board transparency and performance of state corporations (r=0.627, p=0.003) and a strong significant relationship between board accountability and performance of state corporations (r=0.809, p=0.000). The study concluded that transparency has a positive and significant relationship with performance of State Corporations in Nairobi County, Kenya. In addition, the study concluded that accountability has a positive and significant relationship with organizational performance of State Corporations in Nairobi County in Kenya. The study recommends that the disclosure of the financial statements should be carried out on time. Important information that pertains to delivery of services should be readily availed to the management and the board



Key Words: Corporate Governance Practices, Board Transparency, Board Accountability and Performance of State Corporations

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