Nexus between financial reporting practices and corporate governance in Kenya: A case of the Nakuru County government

Abstract

This study sought to explore the nexus between financial reporting practices and corporate governance at the Nakuru County Government, Kenya. This study delves into the critical role of financial controls within the realms of corporate governance and devolved governments. The study used descriptive and correlational research designs to guide the research methodology. The target population was 81 employees in the finance department of the Nakuru County Government. A census was conducted since the target population was less than 200, as required in research. Data was gathered using a questionnaire containing closed and open-ended questions. Reliability and validity tests confirmed that the questionnaire was suitable to achieve the study's objective. Qualitative data collected was analysed using the study's themes, and the results were presented using narratives. The Statistical Package for Social Sciences (SPSS) computer software was employed in analysing the quantitative data that was collected using the close-ended questions. Descriptive statistics and inferential statistics, including percentages and frequencies, Pearson correlation and regression analysis, were used in this study. The findings were presented in the form of tables. The study found and concluded that there was a statistically significant relationship between financial reporting practices and corporate governance (p<0.01). The study recommends that a similar study be conducted in other counties in Kenya to establish the nexus between financial reporting practices and corporate governance.