Abstract: This study sought at determining effects of board size on financial performances of twelve commercial banks listed at NSE. The hypotheses of agency, stakeholders, and resource dependency supported the factors employed where the study was subjected to explanatory method of design. Secondary data is going to be obtained from NSE, and bank financial statements within time frame of 2015-2022 and subjected to normality, multicollinearity, heteroskedasticity, autocorrelation and linearity diagnostic tests before being analyzed using inferential analysis and descriptive statistics. Ethical standards were duly followed. The outcome demonstrated that board size of Kenyan listed commercial banks has an insignificantly positive financial performance effect; It was discovered that the relationship of interest rate with board size positively affected financial performance but in an insignificant manner. The study recommend that the board size should be reviewed to ensure that such board size tallies with the size of the firms responsible to avoid excessive remunerations to many board members in Kenya. This would allow for quick decision making that would facilitate the financial performance of listed commercial banks in Kenya.
Keywords: Board Size, Interest Rate, Financial Performance, Return on Assets.
Title: BOARD SIZE AND FINANCIAL PERFORMANCE OF COMMERCIAL BANKS LISTED AT THE NAIROBI SECURITIES EXCHANGE, KENYA
Author: Dickson Sintei Muntolol, Dr Francis Githagia
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
Vol. 12, Issue 1, April 2024 - September 2024
Page No: 60-68
Research Publish Journals
Website: www.researchpublish.com
Published Date: 30-April-2024
