Corporate Governance and Performance of Private Security Firms in Keny

Abstract

This study examined the relationship between CEO-Board Collaboration, ethical leadership and performance of private security firms in Kenya. The study is grounded on the Agency Theory. The study applied descriptive analysis with a positivist approach. The study participants were members of Kenya Security Industry Association (KSIA) and Protective Security Industry Association (PSIA), since they have representation in Private Security Regulatory Authority (PSRA) board. The private security firms have a complement of 896 (336 board members and 560 managers) according to the Human Resource departments in the private security firms to be studied. The study sample size was 384 respondents. The qualitative data was analyzed by the use of content analysis.Results revealed that all the corporate governance practices had a positive and significant relationship with performance of private security of firms in Kenya. The study concluded that corporate governance practices had the potential of positively influencing performance of security firms in terms of profitability, customer satisfaction and market share. The results support the current theories related to the study. Consequently, this study provides security firms with insights of how to improve performance through the adoption of appropriate corporate governance. This could go a long way in ensuring there is improved performance of private security firms in Kenya. Index Terms— Corporate Governance, CEO-board collaboration, Ethical Leadership, Performance, Private Security Firm. I. INTRODUCTI