Thesis:
Analysis of the influence of corporate governance practices on investment decision outcomes in Isiolo County, Kenya

Abstract

In response to the escalating complexity and volatility of the global business environment, organizations across the world are actively embracing strategic innovations. This study is primarily focused on unraveling the intricate relationship between corporate governance policies and investment decisions within the context of Isiolo County, Kenya. The main objective of this study was to examine the extent to which governance practices influence investment outcomes. To achieve this, the research focuses in on key aspects including governance framework practices, documentation procedures, policy framework implementations, and the vigilance of board monitoring and evaluation activities. This research was anchored on the agency and investment theories. The study employed descriptive survey research design that combines primary and secondary data sources. Primary data collection was based on structured questionnaires, tailored to both proportionate random and targeted samples. These questionnaires form the key for data collection from Members of the County Assembly (MCA) and the local business community. Furthermore, data was gathered through in-depth interviews with County Directors, County Executives as well as County Chief Officers. Document analysis checklists served as an additional layer of data collection. The target population encompasses 645 respondents including County Directors, Executives, Chief Officers, MCA members, and local business stakeholders. By employing a mixed methodology, this research mixed quantitative and qualitative data analysis, using SPSS statistical software. The outcome of this analysis was presented using frequency tables, graphs and pie charts. Ethical considerations remained paramount throughout by ensuring permissions are obtained, and respondents’ confidentiality upheld, as the study seeks to unveil the profound nexus between corporate governance and investment choices, in pursuit of enhanced decision making insights. The study on the influence of corporate governance practices on investment decision outcomes in Isiolo County, Kenya, found that ineffective governance frameworks, weak documentation practices, and inadequate board monitoring and evaluation negatively impacted investment decisions, leading to delays in payments and a loss of investor confidence. Despite the existence of governance policies, their poor implementation discouraged business startups and limited investor trust. The study concluded that corporate governance practices were crucial in shaping investment outcomes, with stronger governance, improved documentation, and enhanced board oversight needed to improve investment attractiveness in Isiolo County. Recommendations included strengthening governance frameworks, improving documentation processes, enforcing policy frameworks, and enhancing board monitoring and evaluation to foster a more conducive investment environment.

Cite this Publication
Chala, B. I. (2025). Analysis of the influence of corporate governance practices on investment decision outcomes in Isiolo County, Kenya. Mount Kenya University. https://erepository.mku.ac.ke/handle/123456789/7443

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Mount Kenya University