The Effect of Corporate Governance on Corporate Performance of General Insurance Companies in Kenya

The study established the effect of corporate governance on corporate performance of general insurance companies in Kenya.The specific objectives invloved to determine the effect of Board size, the effect of the CEO quality, the effect ownership concentration and the effect of audit committee independence on corporate performance of general insurance companies in Kenya.Primary and secondary data of the study was used.A semi-structured questionnaire was used to collect the primary data.The secondary data was obtained from the financial statements of the given general insurance companies.A census sample of 22 companies was done since it is a small population.The study used regression analysis technique to establish the specific objectives.The findings of the study reveals that board size, CEO duality, ownership concentation have no significant effect on corporate performance.Overall, corporate governance has a very weak correlation with corporate performance.However, board size has moderately strong correlation with corporate performance.CEO duality and audit committee have moderately weak correlation with corporate performance.Ownership concentration has weak correlation with corporate performance.Theoretically, this study contributes to the advancement of agency theory and stakeholders theory.Policies on corporate governance may be useful in specified organizations to make certain effective and efficient corporate performance.The study identifies the normal practice of the general insurance organizations through its findings.