Effect of Board Accountability on Quality of Financial Disclosure by Commercial and Service Companies in Kenya

Ndiema Boiyo Philip, Tibbs Yugi Charles and Alala Ondiek Bennedict

Sustainable Business and Society in Emerging Economies, 2025, vol. 7, issue 3, 581-596

Abstract: Purpose: To determine the effect of board accountability on quality of financial disclosure by Commercial and Service Companies in KenyaDesign/Methodology/Approach: The study adopted descriptive and correlational research design. The target population was commercial and service companies’ departments in charge of financial statements making thus accounting and finance giving 145 stakeholders of which sample size was 106 utilized. The stratified and basic random sampling techniques were employed. Closed-ended questions were employed for primary data collection. A pilot research was executed at Nairobi Business Ventures Ltd. The researcher employed Cronbach’s Alpha to assess reliability at a threshold of 0.7. Establish validation through the application of multiple factor analyses, employing variable rotation, and excluding variables with a factor loading below 0.4. Descriptive statistics, including frequencies, percentages, measures of central tendency and dispersion, as well as inferential statistics such as regression and Pearson’s correlation analysis, were calculated using SPSS version 23. Data was presented as tables.Findings: There was a positive significant influence of board accountability on financial disclosure among Commercial and Service Companies in Kenya.Implications/Originality/Value: The study concludes that board accountability is a viable measure in ensuring quality of financial disclosure. The study recommendations that Commercial and Service Companies should formulate feasible board accountability policies that guides board on financial disclosure.

Keywords: Board accountability; Financial disclosure by Commercial and Service Companies (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:src:sbseec:v:7:y:2025:i:3:p:581-596

DOI: 10.26710/sbsee.v7i3.3479

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