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The Effects of Ownership and Corporate Governance Reforms on Efficiency of Privatized Companies in Kenya

Year 2016, Volume: 6 Issue: 1, 323 - 331, 01.03.2016

Esther Wanjugu Gitundu Sifunjo E. Kisaka Symon Kibet Kiprop Lawrence Kangogo Kibet

Abstract

This study investigated the effects of ownership and corporate governance reforms on efficiency of privatized companies in Kenya for the period 2007-2013. Data was extracted from financial reports. A unit root test examined stationarity of data. A fixed effects regression model with a robust standard error option was used to control for firm specific effects which could bias results. The results indicate government ownership has a negative effect on cost and technical efficiency. Local institutional investors influence technical efficiency positively. Large individual shareholders have a positive influence on cost efficiency while dispersed ownership influence cost efficiency negatively. Both non-executive and women directors influence cost efficiency positively. This study recommends further reduction of state and dispersed ownership to pass more ownership and control to institutional investors. Diversity in corporate boards should be enhanced to enable firms to attract managerial and technical expertise from the non -executive and women directors.

Keywords

Privatization SOEs Efficiency

Year 2016, Volume: 6 Issue: 1, 323 - 331, 01.03.2016

Esther Wanjugu Gitundu Sifunjo E. Kisaka Symon Kibet Kiprop Lawrence Kangogo Kibet

Abstract

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Details

Other ID JA77DG69EC
Journal Section Research Article
Authors

Esther Wanjugu Gitundu This is me

Sifunjo E. Kisaka This is me

Symon Kibet Kiprop This is me

Lawrence Kangogo Kibet This is me

Publication Date March 1, 2016
Published in Issue Year 2016 Volume: 6 Issue: 1

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APA Gitundu, E. W., Kisaka, S. E., Kiprop, S. K., Kibet, L. K. (2016). The Effects of Ownership and Corporate Governance Reforms on Efficiency of Privatized Companies in Kenya. International Journal of Economics and Financial Issues, 6(1), 323-331.
AMA Gitundu EW, Kisaka SE, Kiprop SK, Kibet LK. The Effects of Ownership and Corporate Governance Reforms on Efficiency of Privatized Companies in Kenya. IJEFI. March 2016;6(1):323-331.
Chicago Gitundu, Esther Wanjugu, Sifunjo E. Kisaka, Symon Kibet Kiprop, and Lawrence Kangogo Kibet. “The Effects of Ownership and Corporate Governance Reforms on Efficiency of Privatized Companies in Kenya”. International Journal of Economics and Financial Issues 6, no. 1 (March 2016): 323-31.
EndNote Gitundu EW, Kisaka SE, Kiprop SK, Kibet LK (March 1, 2016) The Effects of Ownership and Corporate Governance Reforms on Efficiency of Privatized Companies in Kenya. International Journal of Economics and Financial Issues 6 1 323–331.
IEEE E. W. Gitundu, S. E. Kisaka, S. K. Kiprop, and L. K. Kibet, “The Effects of Ownership and Corporate Governance Reforms on Efficiency of Privatized Companies in Kenya”, IJEFI, vol. 6, no. 1, pp. 323–331, 2016.
ISNAD Gitundu, Esther Wanjugu et al. “The Effects of Ownership and Corporate Governance Reforms on Efficiency of Privatized Companies in Kenya”. International Journal of Economics and Financial Issues 6/1 (March 2016), 323-331.
JAMA Gitundu EW, Kisaka SE, Kiprop SK, Kibet LK. The Effects of Ownership and Corporate Governance Reforms on Efficiency of Privatized Companies in Kenya. IJEFI. 2016;6:323–331.
MLA Gitundu, Esther Wanjugu et al. “The Effects of Ownership and Corporate Governance Reforms on Efficiency of Privatized Companies in Kenya”. International Journal of Economics and Financial Issues, vol. 6, no. 1, 2016, pp. 323-31.
Vancouver Gitundu EW, Kisaka SE, Kiprop SK, Kibet LK. The Effects of Ownership and Corporate Governance Reforms on Efficiency of Privatized Companies in Kenya. IJEFI. 2016;6(1):323-31.