Effect of Audit Committee Independence on the Financial Performance of Insurance Firms in Kenya

Authors

  • Hassan Bashir Ibrahim Research Scholar
  • Caren Ouma Supervisor
  • Jeremiah O. Koshal Supervisor

DOI:

https://doi.org/10.20525/ijrbs.v8i6.501

Keywords:

Audit Committee Independence, Corporate Governance, Corporate Performance

Abstract

The aim of this study was to examine the effect of audit committee independence (ACI) on the financial performance of insurance firms in Kenya. The study analyzed data from the 55 insurance firms licensed by the Insurance Regularity Authority (IRA) in Kenya. ACI was operationalized by the number of independent directors serving in the boards of insurance firms operating in Kenya. Primary data was collected from a sample of 412 board directors, Chief Executive Officers (CEOs), Chief Finance Officers (CFOs), Audit Committee members (AUDIND) and Internal Auditors (INAUD) using a questionnaire instrument while secondary data was retrieved from audited financial reports of year 2017. Data was analyzed using descriptive and inferential statistics. Firm performance was measured by the two accounting-based measures Return on Assets (ROA) and Return on Equity (ROE). The findings from the regression analysis indicate that audit committee independence significantly and positively affects the financial performance of insurance firms in Kenya.

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Published

2019-10-20

How to Cite

Ibrahim, H. B., Ouma, C., & Koshal, J. O. (2019). Effect of Audit Committee Independence on the Financial Performance of Insurance Firms in Kenya. International Journal of Research in Business and Social Science (2147- 4478), 8(6), 15–24. https://doi.org/10.20525/ijrbs.v8i6.501

Issue

Vol. 8 No. 6 (2019): October

Section

Articles

License

Copyright (c) 2019 Hassan Bashir Ibrahim, Caren Ouma, Jeremiah O. Koshal

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

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