The effect of internal controls on financial performance of state enterprises in kenya

• Autores: Mercy Ongonge, Kennedy Okiro
• Localización: International Journal of Professional Business Review: Int. J. Prof.Bus. Rev., ISSN 2525-3654, ISSN-e 2525-3654, Vol. 9, Nº. 12, 2024 (Ejemplar dedicado a: Continuous publication; e05193)
• Idioma: inglés
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• Resumen

  • Purpose: In today's business environment, organizations face various internal and external risks. A robust risk management framework should be implemented to effectively identify, treat, mitigate, and manage such risks. While risk management is understood well in the Kenyan corporate world, the public sector must embrace it fully. This study aims to promote the adoption of Internal controls using the COSO framework by analyzing its effect within the Kenyan context.

      Design/Methodology/Approach: The study employed a positivist research philosophy, using objective, measurable data and statistical tools. A longitudinal panel design was adopted   Findings: This study finds that internal controls impact financial performance, amplifying the positive impact of internal controls elements adoption into the management of State enterprises in Kenya.

      Research, Practical & Social Implications: Internal Controls was operationalised by adopting the COSO frameworks’ 5 elements of control environment, risk assessment, control activities, information and communication and monitoring activities.

      Originality/Value: Based on these results, the study made recommendations for both policy and management practices aimed at enhancing the performance of state enterprises, it extends the knowledge about the relationship between internal controls and financial performance.