Browsing by Author "NICODEMUS OYUGI OKOTH"

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    CORPORATE GOVERNANCE, INTELLECTUAL CAPITAL AND FINANCIAL PERFORMAMNCE OF SDA CHURCH VENTURES IN KENYA
    (2025) NICODEMUS OYUGI OKOTH
    Effective corporate governance is vital for organizational success, particularly in intricate business settings. Church Ventures often face financial difficulties, including inadequate liquidity and significant staff turnover. Recent data highlights that a substantial percentage of these Ventures (65%) struggle with maintaining liquidity and experience high rates (45%) of staff departures annually. These issues often stem from inadequate board supervision, poor internal control systems, and insufficient strategic planning. Existing literature suggests a relationship between corporate governance and financial performance, but this connection is under explored within the Seventh-day Adventist (SDA) Church. Few studies specifically address how governance practices impact the financial health of SDA Ventures. Additionally, the unique organizational structure and mission of the SDA Church present governance challenges not covered by general corporate governance research. This lack of targeted studies creates a gap in understanding how governance reforms could enhance the financial sustainability of SDA entities. Intellectual capital, including human, structural, relational, and strategic assets, is a key driver of organizational value and competitive advantage. This study aims to investigate the role of intellectual capital in moderating the relationship between corporate governance and financial performance in SDA Church Ventures in Kenya. It examined the effects of board composition, leadership structure, internal control systems, risk management, and stakeholder engagement on financial performance. Utilizing a quantitative research design guided by agency and stewardship theories, the study will collect primary data through structured questionnaires from 100 respondents (10 Chief Executive Officers (CEO), 10 business managers, 10 chief accountants, 10 internal auditors, 50 accountants, and 10 chaplains), supplemented by secondary financial data. A multiple regression model will be used for analysis, aiming to provide actionable insights. The validation of the data collection instruments will involve expert review to confirm content validity and instrument reliability through test- retest. The study examined the impact of corporate governance, leadership structure, internal controls, risk management, stakeholder engagement, and intellectual capital on the financial performance of SDA Church Ventures in Kenya. The findings revealed that board composition had an insignificant effect on financial performance (R² = 0.034, β = 0.076, p > 0.05), indicating that other governance factors play a more pivotal role. Leadership structure demonstrated a significant positive effect (R² = 0.271, β = 0.521, p < 0.05), signifying the importance of well-defined leadership in financial sustainability. Internal controls had a strong positive effect on financial performance (R² = 0.412, β = 0.643, p < 0.05), underscoring their role in maintaining financial integrity. Risk management significantly influenced financial performance (R² = 0.389, β = 0.617, p < 0.05), emphasizing the necessity of proactive risk mitigation strategies. However, stakeholder engagement did not exhibit a significant effect (R² = 0.029, β = 0.068, p > 0.05), suggesting that its impact on financial performance may be indirect or dependent on other factors. Intellectual capital was found to significantly moderate the relationship between corporate governance and financial performance (R² = 0.451, β = 0.678, p < 0.05), indicating that Ventures leveraging intellectual resources alongside governance mechanisms achieve superior financial outcomes. The study concludes that while board composition and stakeholder engagement do not directly impact financial performance, leadership structure, internal controls, risk management, and intellectual capital significantly contribute to institutional financial sustainability. It is recommended that SDA Ventures enhance leadership frameworks, strengthen internal control mechanisms, implement comprehensive risk management strategies, and integrate intellectual capital with corporate governance to optimize financial outcomes and long-term stability.