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Corporate Governance Strategy and Firm Value in the Context of Commercial Banks in Kenya

Author

Listed:
  • Evans Macheroochego

    (kenyatta University)

  • Job Omagwa

    (kenyatta University)

  • Stephen Muathe

    (kenyatta University)

Abstract

Firm value is dependent on Corporate governance which leads to increased value. High valued firms attract more investors. Towards firm value protection, minimum capital requirements were raised by the Central Bank of Kenya from 250 million to 1 billion shillings on commercial banks to cushion bank shareholders value. Despite the increased oversight and regulatory efforts on corporate governance to protect and enhance firm value, some commercial banks have recorded low firm value. Hence, this study sought to investigate the effect of corporate governance on firm value of commercial banks in Kenya.

Suggested Citation

  • Evans Macheroochego & Job Omagwa & Stephen Muathe, 2020. "Corporate Governance Strategy and Firm Value in the Context of Commercial Banks in Kenya," Post-Print hal-02542954, HAL.
    • Handle: RePEc:hal:journl:hal-02542954
    Note: View the original document on HAL open archive server: https://hal.science/hal-02542954
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    References listed on IDEAS

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    1. Dulacha G. Barako & Phil Hancock & H. Y. Izan, 2006. "Factors Influencing Voluntary Corporate Disclosure by Kenyan Companies," Corporate Governance: An International Review, Wiley Blackwell, vol. 14(2), pages 107-125, March.
    2. Abdul Hadi Zulkafli & Azlan Amran & M. Fazilah Abdul Samad, 2010. "Board structure and firm value: a study on listed banking firms in the Asian emerging markets," International Journal of Business Governance and Ethics, Inderscience Enterprises Ltd, vol. 5(3), pages 157-177.
    3. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    4. Nelson Waweru, 2014. "Determinants of quality corporate governance in Sub-Saharan Africa: Evidence from Kenya and South Africa," Managerial Auditing Journal, Emerald Group Publishing, vol. 29(5), pages 455-485, May.
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    Keywords

    Corporate Governance; Firm Value; Commercial Banks in Kenya;
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