Browsing by Author "Muraguri, Kelvin Gakuya"

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    Corporate Governance And Performance Of Family-owned Businesses In Kenya
    (KCA University, 2025) Muraguri, Kelvin Gakuya
    Corporate governance is a system designed to professionally guide businesses by implementing solid corporate governance procedures. Corporate governance provides a framework for determining the company's goals. It also functions as a tool for measuring corporate performance and accomplishing objectives. The study sought to examine how corporate governance affects the performance of family-owned businesses in Kenya. A family business is a commercial enterprise in which different generations of family members, whether related by blood, marriage, or adoption, have a role in decision-making. Its objectives were to examine the impact of governance structures, succession planning, conflicts of interest, and board composition on the performance of these businesses. This research will benefit the management of family-owned businesses in Kenya and other organizations by providing insights into effective corporate governance practices. It will also be valuable for research organizations interested in further studies in this field. This study was supported by resource dependency theory, profit maximization theory and agency theory to clarify how corporate governance influences the performance of family-owned businesses. The study targeted 100 staff members, management, directors, and business owners from 32 family-owned businesses in Nairobi County and adopted the census method as a sampling technique. A descriptive research design was employed, utilizing structured questionnaires for data collection. The analysis was conducted using both descriptive and inferential statistics in SPSS version 25. Three diagnostic tests of multicollinearity, normality and heteroskedasticity confirmed the reliability and validity of the collected data. The descriptive statistics revealed the suitability of the sampled respondents. The inferential analysis demonstrated that governa nce structure, succession planning, conflict of interest and board composition have varying insignificant relationships with firm performance with all four-having p-values greater than 0.05. The coefficient of determination, R2 was 0.3478 which indicates that the estimated regression equation can predict only 34.78% of the variation. The adjusted R2 was 0.0296 which tells us there was a 2.96% variation in company performance of the corporations due to changes in governance structure, succession planning, conflict of interest and board composition. The research recommends that family-owned firms should strive to change their current governance structure, and boards should initiate succession plans and involve external equity owners for better performance. The study suggests that research on other determinants of better performance should be revisited to evaluate their effects on corporate governance in family-owned businesses.