Journal of Economics and Financial Analysis, 5 (1), pp. 65-79, [2021]

Determinants of Corporate Risk Management: Does Board Size and Tenure Matter? Panel Data Approach from Kenyan Publicly Listed Firms



The investors' weakening confidence towards corporate risk management particularly after the crisis has made corporate governance a top priority for the board. The awareness of risk is growing and firm practices have increasingly become organized around risk. The purpose of this paper is to investigate determinants of corporate risk management by taking into consideration board size and board tenure. The study was informed by Modern Portfolio Theory while panel approach was deemed to be appropriate. Based on inclusion-exclusion criteria, 49 firms were sample from 2013-2019 giving a total of 343 firm-year observations. The findings revealed that board size had a positive and insignificant effect while board tenure was significant and positively related to corporate risk management. The longer the experience of managers, the more knowledgeable they become thus more capable of managing corporate risk. This study contributes by providing additional empirical evidence regarding determinants of corporate risk management.


Corporate Risk Management; Board Size; Board Tenure; Modern Portfolio Theory.

JEL Classification

G20, G30, G32.

Full Text:


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