Margaret Mose Wanje, Abdullah Ibrahim Ali


Financial health and sustainability ensure that businesses meet their financial responsibilities on time and increase stakeholder loyalty. The size of the board plays an important role in ensuring that firms maintain financial health and sustainability. However, some of the firms listed at NSE have been having financial distresses, making losses and issuing profit warnings leading to collapsing of some of them. It was therefore important to examine how board size affects financial performance of the firms listed in Nairobi Securities Exchange. The study adopted an explanatory research design. The target population was 58 firms listed in Nairobi Securities Exchange. The unit of observation was heads of finance departments of Nairobi Securities Exchange-listed firms. The study employed census approach and hence included all the 58 heads of finance departments in listed firms at the Nairobi Securities Exchange. Moreover, the researcher employed primary and also secondary data. Moreover, secondary data was obtained from yearly reports of NSE-listed firms. Primary data was obtained using semi-structured questionnaires which generated quantitative and also qualitative data. Additionally, thematic analysis was employed to analyze qualitative data and findings were given in form of a narrative. Inferential and also descriptive statistics were employed in analyzing quantitative data with the support of SPSS version 24, statistical software. Moreover, descriptive statistics composed frequencies, mean, percentages and also standard deviation. Inferential data analysis will be done using multiple linear regression and also Pearson correlation coefficient analysis. The study found that board size has a significant and positive effect on the financial performance of firms listed in Nairobi Securities Exchange. The study recommends that the management of firms listed in Nairobi Securities Exchange should select at least nine members of board in order to benefit from a wider range of professionals? counsel and opinion from members with diverse experience, skills, gender, and ethnicity.

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