Journal of
Agricultural Extension and Rural Development

  • Abbreviation: J. Agric. Ext. Rural Dev
  • Language: English
  • ISSN: 2141-2170
  • DOI: 10.5897/JAERD
  • Start Year: 2009
  • Published Articles: 410

Article in Press

Inter-relationship of corporate governance mechanisms and financial performance of coffee farmer’s co-operative societies in Kenya

David Musuya and Kadian Wamyama

The paper shows that the performance of coffee farmer’s co-operative societies is a function of the interplay of corporate governance mechanisms: Board Size, Board Composition and status of the Chief Executive Officer (CEO). The paper has been built from a previous study by Musuya that recommended a further research on the effect of inter-relationship of corporate governance mechanisms and financial performance amongst coffee farmer’s co-operative societies in Kenya. In essence to find out the effect of multicollinearity between the explanatory variables, but not high enough to cause serious problems. The research used the times-earned- interest as performance variable, guided by the null hypothesis that there is no relationship between the interplay of corporate governance mechanisms and performance. Indeed analysis results showed that there exist a relationship between performance and the interplay of corporate governance mechanisms in farmer’s co-operative societies, thus rejecting the null hypothesis.

Keywords: Corporate governance, corporate governance mechanisms, performance.