Poor corporate governance in eight companies has cost investors Sh264.3 billion, a new report has said. “The performance of a firm’s share price is affected by a number of other factors aside from corporate governance,” he said. Further, for companies such as Kenya Airways, it is difficult to tell if the firm even had corporate governance problems. “You would also have to look at when the information on corporate governance became public, leading to a decline in share price,” he said. However, Francis Mwangi, an investment analyst at Standard Investment Bank, cautioned that it is difficult to connect the drop in share price to corporate governance issues.

Source: Standard Digital May 09, 2016 15:42 UTC