Abstract: The study sought to examine the effect of board characteristics on financial performance of microfinance banks in Kenya. It delves into the effect of board size, gender representation, and board independence on the financial standing of these institutions. Theoretical framework comprises of agency, resource dependency, institutional and stewardship theories respectively. Research data was collected over time frame 2015-2022. To illuminate the hidden patterns and relationships within the data, a panel of secondary data extracted from audited financial reports and records was subjected to rigorous scrutiny. The outcome unveiled a positive but statistically insignificant effect of board size on financial performance; board composition of the selected banks affected the selected microfinance banks’ financial performance negatively with such effect being insignificant in Kenya; and board independence inversely but insignificantly affected these selected microfinance banks’ financial performance in Kenya. The survey suggests that the management of selected microfinance banks in Kenya should contemplate reducing the size of the board to enhance financial performance.
Keywords: Board Characteristics, Board Size, Board Independence, Board Composition and Financial Performance.
Title: BOARD CHARACTERISTICS AND FINANCIAL PERFORMANCE OF SELECTED MICROFINANCE BANKS IN KENYA
Author: Fardowsa Ibrein Ibrahim, Caroline Kimutai
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
Vol. 11, Issue 2, October 2023 - March 2024
Page No: 368-378
Research Publish Journals
Website: www.researchpublish.com
Published Date: 18-March-2024
