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Article
Publication date: 3 October 2016

Joel Kiplagat Tuwey and Daniel Kipkirong Tarus

The purpose of this paper is to determine how board leadership affects the board strategic involvement in private firms in Kenya and how CEO power moderates this relationship.

Abstract

Purpose

The purpose of this paper is to determine how board leadership affects the board strategic involvement in private firms in Kenya and how CEO power moderates this relationship.

Design/methodology/approach

The authors used a Kenyan data set to investigate what makes boards in private firms get involved in strategy. Survey data derived from a sample of 186 CEOs of private firms were used, and the hypotheses were tested using moderated regression analysis.

Findings

The results indicate that board members’ knowledge, board chairman’s leadership efficacy, board members’ personal motivation and board members’ background all have a positive and significant effect on board strategy involvement. The authors also found that CEO power moderates the relationship between board leadership and strategy involvement. The study concludes that when the CEO wields immense power, the board tends to become passive and to submit to the direction of the CEO.

Originality/value

The study adds value to the understanding of the effect of the board leadership on strategic involvement in private firms and how CEO power influences this relationship, particularly in a developing country like Kenya.

Details

Corporate Governance: The International Journal of Business in Society, vol. 16 no. 5
Type: Research Article
ISSN: 1472-0701

Keywords

Article
Publication date: 9 August 2022

Daniel Kipkirong Tarus, Joel Kiplagat Tuwey and Jacob Kimutai Yego

Using the resource dependence and legitimacy theories, this research aims to examine the relationship between board attributes and human rights reporting, as well as the…

Abstract

Purpose

Using the resource dependence and legitimacy theories, this research aims to examine the relationship between board attributes and human rights reporting, as well as the interaction effect of board chairperson experience on the relationship among listed firms at the Nairobi Securities Exchange (NSE).

Design/methodology/approach

This study collected data from annual reports of firms listed on the NSE from 2009 to 2019 using content analysis to examine how boards influence human rights reporting. A total of 547 firm-year observations were used to test the hypotheses. This study used a hierarchical regression model to examine the relationship.

Findings

This study found that board attributes are important predictors of human rights reporting. This study shows that both board diversity and board independence have a positive impact on human rights reporting. Furthermore, the interaction results revealed that having a highly experienced chairperson strengthens the effect of board independence on human rights reporting; however, this study found that experienced chairperson reduces the influence of board diversity on human rights reporting.

Research limitations/implications

The findings suggest that board diversity and independence are essential attributes to which listed companies should pay attention when appointing board members. Moreover, the chairperson's leadership on the board is critical in ensuring that publicly trading companies adopt policies that disclose human rights information.

Originality/value

This paper provides insights into Kenya's human rights disclosure practices. It also analyzes how boards influence human rights disclosures, an empirical test that has received little attention in the previous literature. This study emphasizes the importance of board members and the chairperson in advocating for human rights reporting to improve corporate sustainability.

Details

Corporate Governance: The International Journal of Business in Society, vol. 23 no. 2
Type: Research Article
ISSN: 1472-0701

Keywords

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