Corporate governance and performance: a case study of National Water and Sewerage Corporation

Abstract

The purpose of the study was to examine the effect of corporate governance on performance of National performance of NWSC, to investigate the effect of board composition on the performance of NWSC and to examine the effect of board size on the performance of NWSC. The study adopted a case study research design since it entailed a methodical identification of a single unit for analysis. It was found out that board structure in terms of executive and non-executive directors enhances performance of an organization. The study revealed a moderate positive significant relationship between the board structure and performance at NWSC with r=68.4%.The board composition had a high positive relationship with performance with r=72% and the board size at NWSC also revealed a moderate positive relationship between board size and performance with r=60%.The study concluded that; organizations ought to have a balanced board structure as well as board size depending on the size of the organization, gender balance should be encouraged in an organization and competences among the board members should be emphasized if performance of NWSC is to improve. It was recommended that a proper balance between executive and non-executive directors should be implemented so as to enhance performance of the organization. The organization should maintain the right mix of board members in terms of age, gender and professions so as to further enhance its performance. Regarding board size, the study recommends that large companies like NWSC should have a large board size since it needs a bigger collection of expertise and resources. In general, a small board size is recommended for smaller organizations because it would have good monitoring abilities, limits many conflicting ideas that would otherwise limit the fast tracking of certain activities, is efficient and effective in monitoring, is better informed concerning the firm and is efficient and quick in decision making.