Investment Governance: Delegation Decision Antecedents by Insurance Companies in Kenya

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dc.contributor.authorRogers Kinoti M’Ariba
dc.contributor.authorOluoch Oluoch
dc.date.accessioned2026-01-24T07:30:26Z
dc.date.available2026-01-24T07:30:26Z
dc.date.issued2020-05-31
dc.description.abstractDelegation decisions comprise a key component of investment governance structures of firms. Based on agency theory, this paper explores corporate governance and market dynamics as antecedents of investment management delegation by insurance firms in Kenya. Investment governance structures employed by firms are shaped by their unique circumstances and diverse considerations. The objectives of this research were to establish the influence of corporate governance and market dynamics on the investment governance structures of insurance firms in Kenya. The study adopted a descriptive approach with a target population of forty six firms in insurance and reinsurance business in Kenya. Both primary data and secondary data were collected. Data analysis was conducted using STATA relying on a binary logistic regression model. The study found that shareholder control, board diversity and avoidance of agency problems leads firms towards delegating their investment management activities. Desire to access alternative assets, peer influences and asset allocation considerations had a lesser extent of influence on firms towards delegation. The study concludes that large shareholder dictations and lack of investment management expertise in boards causes firms to adopt delegation models in their investment management. On the other hand, easy access to investment markets and constant supply of high yielding government bonds pulls firms towards internal investment management. It is recommended that firms make appropriate choices on extent of delegation by carefully evaluating their needs and developing structures that deliver best outcomes.
dc.identifier.citationM’Ariba, R. K., & Oluoch, O. (2020). Investment Governance: Delegation Decision Antecedents by Insurance Companies in Kenya. European Scientific Journal, ESJ, 16(13), 286. https://doi.org/10.19044/esj.2020.v16n13p286
dc.identifier.issnISSN: 1857-7881 (Print) e - ISSN 1857-7431
dc.identifier.urihttps://repository.ru.ac.ke/handle/123456789/2002
dc.language.isoen
dc.publisherEuropean Scientific Journal
dc.relation.ispartofseriesVol 16 No 13 (2020)
dc.subjectHuman- Investment management
dc.subjectdelegation
dc.subjectagency theory
dc.subjectorporate governance
dc.subjectinvestment markets
dc.titleInvestment Governance: Delegation Decision Antecedents by Insurance Companies in Kenya
dc.typeArticle

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