INFLUENCE OF CORPORATE GOVERNANCE PRACTICES ON FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN KENYA

Abstract

Corporate governance is the new strategic imperative ( EIU, 2012). Corporate governance involves a set of relationships between a company’s management, its board, its shareholders and other stakeholders (OECD, 2011). There are over 40,000 multinational corporations currently operating in the global economy with top 200 multinational corporations having a combined sales of $7.1 trillion, which is equivalent to 28.3 percent of the world's gross domestic product (US, 2011). World Bank (2011) highlighted that corporate fraud