Research proposal

Jomo Kenyatta university of Agriculture and Technology

Public management and development

Antony Odhiambo Omuya

HDC 223-0360/2018

Research Methodology

HDS 2415

Task: Research proposal

Research proposal

CORPORATE GOVERNANCE AND ITS IMPACT ON THE MANAGEMENT OF AN

ORGANIZATION; ISSUES, PRACTISES AND CONCERNS.

Introduction

Corporate governance by definition refers to a system of rules, practices and

processes by which a company is directed and controlled. The way in which companies are
governed and to what purpose. It identifies who has power and accountability, and who
makes decisions. For most organizations the following bodies are the main actors in
corporate governance; the chief executive and officers, the board of directors and
shareholders (Kesho, 2008)

Corporate governance is a multifaceted concept that centers on notions of

organizational accountability and responsibility (Williamson 1998, 2005). Governance
implies that institutional structures whether formal or informal create constrains on the
behavior of a given party. Such constrains are implied to be in the interests not just of the
party under direct governance, but of the parties who, by virtue of their imposition of
governance mechanisms, have an interest in the governed party.

Today, corporate governance is becoming more and more complex and mosaic. It
explains more than the board processes and procedures. It encompasses several elements
including government, capital structures. Labor market, organization along with their
regulatory mechanisms and the processes that connect the structures with agents
(Alawattage and Wickramasinghe 2004). For this reason, the issue of corporate governance
is filled with complicated issues concerning the most suitable and satisfying institutional
mechanisms, effective monitoring and the balancing of competing interests of stakeholders.

Problem statement

Numerous organizational projects are still plagued by delays and cost overruns,
which can be frequently traced to ineffective system of rules, practices and control
processes. Corporate governance directly impacts the profits and reputation of the
company, and having poor policies can expose the company to lawsuits, fines, reputational
damage and capital investments. To begin with, when these constrains are not properly
identified and addressed, subsequent conflict in operation are inevitable.
Research proposal

Organizational projects are growing more complex with each dawn, as a result, this
exposes operations to even more dangerous and daunting corporate governance issues. For
this reason, there exists a need for a better understanding of these corporate governance
issues, in order to ensure a constraint free work plan and environment. The following
research questions need to be addressed:

1.) What are the existing corporate governance issues?

2.) How can we classify these issues for easier identification and solution?
3.) What are the current organizational practices as well as research advancement in
addressing and resolving these issues?

If these issues are left unidentified, unclassified and unresolved; they not only destroy the
companies as well as its stakeholders’ wealth but also hurts the entire economy. This
therefore, necessitates the need for additional knowledge through a study.

Significance of study

The corporate governance is a wide concept covering almost all working socio economic
facets of a business. Due to numerous corporate failures, the relevance of successful
corporate governance has been acknowledged, especially how it can be a tool to bring in
socio-economic discipline (shamshuddin M. Nadaf et al. 2009) and voluntary practices that
enable companies to attract financial and human capital, perform efficiently and thereby
maximize long term value for the shareholders besides respecting the aspirations of
multiple stakeholders, including that of society.

Objectives

The aim of this research is to identify issues, challenges and opportunities of

corporate governance and its impact on the management of an organization. This will aid in
developing a formalized constrain management system. The main objective of this study,
therefore, is to provide a comprehensive review of literatures and organizational practices
in relation to issues and challenges analysis and outline a framework for resolving these
issues. Specifically, the study has the following objectives:

1.) To have a thorough understanding of the concept of corporate governance.

2.) To study the issues and opportunities of corporate governance practices.
Research proposal

3.) To analyze the challenges of corporate governance faced

4.) To suggest recommendations based on findings.

Preliminary literature review

Previous studies show that past studies are primarily focused on understanding a particular
corporate governance issue such as: conflict of interest, oversight issues, accountability
issues, transparency, diversity, remuneration, ethics violation among others.

Limited progress has been made on classifying these various issues according to their characteristics
in a comprehensive manner

Secondly, there is little or no mention of the principles of corporate governance in most

works. These principles as mentioned by Okoh (2008) include: rights and equitable treatment of
shareholders, interest of other stakeholders, role and responsibilities of the board and lastly,
integrity and ethical behavior.

Core (1999) in his study found the firms who have weaker governance to direct and manage
company affairs face greater agency problems. Firms, therefore, need improved corporate
governance in order to survive for long term growth and survival. The research concluded that good
corporate governance can occur in the organization by putting the balance between the ownership
and control.

Methodology

The primary research method for this study is literature review and conceptual modelling. The
research is theoretical and descriptive in nature, therefore the work has been done using secondary
data. These are: research articles, journals, magazines, government report among others.

Plan of work and time schedule

This study will first review various types of issues and challenges in corporate governance and their
characteristics. Based on this understanding, a classification method will be developed to categorize
these issues and challenges for the purpose of identification for future addressing. In the second
stage of this study, existing corporate governance opportunities will be identified based on a
comprehensive review on current organizational practices and academic researches. Finally, once
the issues, challenges and opportunities are known, a conceptual framework for successful
corporate governance will be outlined.

This study will be conducted between November 2021and February 2022.

References

1.) Kesho Prasad, (2008) corporate governance in India, prentice hall of India, new Delhi(pg 260-
264)
2.) Core JE, Holthausen RW, larcker DF. Corporate governance, Journal of financial economics.
1999; (371-406
3.) Sumeet khurana, corporate governance, dream tech press, New Delhi, 2011.
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4.) Alawattage and Wickramasinghe, corporate governance practices and its impact on
firm performance, Sri Lankan banking institutions, global journal of management,
2004.
5.) Shamshuddin M. Nadaf et al. role of corporate governance and internal control.
Leadership challenges and business strategies in emerging markets, 2009.