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Corporate Governance, Strategic Choices and Performance of Financial Institutions in Kenya

Author

Listed:
  • Grace Kamau
  • Evans Aosa
  • Vincent Machuki
  • Ganesh Pokhariyal

Abstract

It has been argued that corporate governance plays a critical role in determining the strategic direction of corporations. This is achieved through formulation of strategic choices that utilizes firm’s internal resources to align corporations to the external environment for optimal performances. In this study, we sought to determine the influence of corporate governance and strategic choices to the performance of financial institutions in Kenya. A cross sectional descriptive research design was adopted and, primary data collected from top executives of 108 financial institutions. We analyzed data using regression analysis. Results indicate that corporate governance and strategic choices significantly influences organizational performance. Further, the study revealed a partial mediation of strategic choices to corporate governance and organizational performance. It was concluded that besides corporate governance being a key determinant of performance in organizations, adoption of appropriate strategic choices greatly enhances the performance. The results are important to organizational leaders, policy makers, investors and all corporate stakeholders in determining optimal strategies for organizational posterity.

Suggested Citation

  • Grace Kamau & Evans Aosa & Vincent Machuki & Ganesh Pokhariyal, 2018. "Corporate Governance, Strategic Choices and Performance of Financial Institutions in Kenya," International Journal of Business and Management, Canadian Center of Science and Education, vol. 13(7), pages 169-169, June.
    • Handle: RePEc:ibn:ijbmjn:v:13:y:2018:i:7:p:169
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    References listed on IDEAS

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    Cited by:

    1. Otieno, D & Adem, A, 2021. "Determinants of Strategic Choice among Universities in Kenya," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 5(10), pages 672-678, October.
    2. Peter Kwarteng & Kingsley Opoku Appiah & Joseph Akadeagre Agana & Newman Amaning, 2024. "Effect of corporate governance mechanisms on corporate strategy for listed firms in Sub-Saharan Africa (SSA)," SN Business & Economics, Springer, vol. 4(6), pages 1-39, June.
    3. Peter Kariuki & Beatrice Elesani Ombaka & Paul Kiumbe Mburu, 2021. "Influence of corporate governance on performance of public universities in Kenya," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 10(7), pages 116-128, October.

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    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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