Board Behavior and Corporate Performance: A Case of African Guarantee Fund for Small and Medium-Sized Enterprises
- July 31, 2020
- Posted by: RSIS
- Categories: IJRISS, Management
International Journal of Research and Innovation in Social Science (IJRISS) | Volume IV, Issue VII, July 2020 | ISSN 2454–6186
Nicole Mueni Muia, Julius Kahuthia Mwangi, John Muhoho
Department of Business Studies, St Paul’s University
Abstract:- The main purpose of this study was to examine effect of corporate governance on the performance of credit guarantee schemes. The study was guided by the following objectives; to determine effect of board behavior and the performance of credit guarantee schemes. The study was guided by the stewardship theory. The study employed descriptive research design. The target population was 40 staff working at AGF. Census survey was adopted while primary data was used which was collected using questionnaires. The validity and reliability of the data collection instruments was ascertained through pretesting. Descriptive statistics like frequencies and percentages was used to summarize data while inferential statistics such as correlation coefficients was used to test the non-causal relationship between variables while regression analysis was used to test the research hypotheses at 5% significance level with the aid of SPSS version 25. The results were presented using tables and discussion there-off. The research findings indicate that there exist a statistically significant positive relationship between board behavior and the performance of credit guarantee schemes.
Key words: board behavior, performance, corporate governance, credit guarantee schemes, stewardship
I. INTRODUCTION
It is important to highlight the definition of corporate governance to understand it at its entirety. Berger, Imbierowcz and Rauch (2016) ascertain that good corporate governance practices will result to a great significance in the improvement of the performance of companies. Corporate Governance is concerned with structures, actions or mechanisms in which the management of a company is held responsible by the stakeholders that have stake in the business. Corporate governance provides structures intended to ensure that the right questions are asked, with checks and balances put in place to reflect what is best for the creation of long-term sustainable value of the firm Monks and Minow(2004). Sharma (2015) asserts that corporate governance is putting in place an arrangement, devices and measures that will ensure that the company is focused on maintaining the shareholder value through the role of their managers.
