| dc.description.abstract | The issue of corporate governance is still a
debate across the world, with some
emphasizing its role in their firm
performance whereas others underplay its
role in business. The purpose of the
current study was to establish the influence
that internal attributes of corporate
governance have on the financial
performance of microfinance institutions
in Nairobi County. The specific objective
of the study was to determine the influence
of board composition on the financial
performance of Microfinance Institutions
in Nairobi County. The population of
interest in the study was 351 board
members, CEOs, and auditors in 25 MFIs
in Nairobi County. Through the use of the
Yamane formula, 187 respondents were
sampled for the study to provide primary
data. Primary data was collected through
drop and pick methods of a questionnaire
among the respondents, whereas secondary
data was collected from financial
newsletters and published financial
statements among the 25 MFIs in Nairobi
County. Data collected for the study was
analyzed through descriptive analysis
including determination of frequencies,
percentages, standard deviation, and mean.
Correlation analysis and simple linear
regression were conducted to establish the
nature of the relationship between
independent and dependent variables. The
presentation was tabulated and narrated.
The findings of the study revealed that
board composition was associated with
(β=0.552, t=3.080, and a p-value
associated with it was 0.003). The study
concluded that board composition had a
positive and significant influence on the
financial performance of MFIs in Nairobi
County. The study recommended an
appropriate number of board members that
were financially manageable and optimal
in decisions making. Besides, the study
recommended a good mix of directors,
both executive and non-executive, gender
inclusiveness, and also a good mix of
professionals and experienced members to
ensure better financial performance of
MFIs in Nairobi County. | en_US |
