Board attributes, ownership concentration, and corporate risk management. Evidence from listed non-financial firms in Kenya

Abstract

This research aimed to examine whether ownership concentration moderates the link between board attributes and corporate risk management in Kenya. The sample included 41 non-financial companies from 2010-2017. Hierarchical binary logistic regression was employed to test the interaction of the variables. The study results indicated that concentration of ownership had a positive and insignificant moderating impact on the association between board financial expertise and corporate risk management (β = 0.12, ρ > 0.05) while the concentration of ownership positively and significantly moderated the relationship between board independence and corporate risk management (β = 0.75, ρ < 0.05). The results will be useful to investors by understanding how board aspects affect corporate risk management. This research offers useful perspectives especially in the context of emerging economies on the role played by the ownership concentration in terms of shareholdings while shaping management choices regarding corporate risk management.