The Influence Of Ethical Leadership On The Financial Performance Of Listed Firms In Kenya

A review of meta-analyses and various constructs relating to ethical leadership as presented in prior studies indicate a gap in endeavors to link ethical leadership practices and financial performance of listed firms in Kenya. This study attempted to address this gap. This study was inspired by the emerging ethical issues in the contemporary business environment as witnessed in listed firms, both regionally and locally. The study sought to evaluate the influence of various ethical leadership practices on financial performance of listed firms in Kenya. The research hypothesized that ethical practices on human resources, advertising, investor relations and consumer relations affect the financial performance of the listed firms.

The study adopted a causal research design to determine the relationship between ethical leadership and financial performance of the listed firms in Kenya. Collection of primary data was done by use of a semi-structured questionnaire containing both open and closed ended questions. Secondary data was collected from websites of the listed firms and the resource centre of the Capital Markets Authority (CMA). The primary data collection tool was administered in the form of hardcopy questionnaires and online Google-Forms.