CORPORATE GOVERNANCE PRACTICES AND FINANCIAL SUSTAINABILITY OF NON-PROFIT ORGANIZATIONS IN NAIROBI COUNTY KENYA

Authors: Selestine Auma Njoga & Wanyoike Charles Githira

ABSTRACT

The research main objective was to determine corporate governance effect on financial sustainability of NPOs in Nairobi County, Kenya. It was hypothesized that board independence, gender diversity, audit committee size and board meetings do not affect financial sustainability of NPOs in Nairobi County Kenya. A descriptive research design was used. A sample size of 93 from 1252 active NPOs was determined using Yamane formula. Secondary data obtained and Random effects panel regression model adopted. Findings showed that corporate governance practices had a positive and statistically significant effect on the financial sustainability of NPOs in Nairobi County, Kenya. The study recommended that NPOs in Nairobi County, Kenya enhance corporate governance practices on board independence, gender diversity, audit committee size and number of board meetings due to their positive effect on financial sustainability of NPOs in Nairobi, Kenya.

Keywords: Corporate Governance Practices, Board Independence, Gender Diversity, Audit Committee, Board Meetings, Financial Sustainability

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