The study examined the effect of corporate governance on firm’s financial performance amongst private business enterprises in Uganda. The study used descriptive and survey design. A mixed method approach which involved both qualitative and quantitative techniques were also used. The study found out that corporate governance significantly influences the financial performance of hotels and manufacturing firms in Lira City and majority of the firms investigated performed on average financially. It was also established that firms whose boards demonstrate high integrity were likely to register positive changes in their financial performance than firms whose boards do not. The study also noted that board independence would propel the firm to grow to greater heights. The study recommends that hotel and manufacturing firm owners should exercise some discipline and leave boards to operate independently. This would allow the board to remain focused on the long-term goals of the firm. The hotel and manufacturing firm owners should be cautious in selecting board members lest they attract many that would increase the firm’s liabilities.

	 

	Key words: Corporate governance, board diversity, board integrity, firm performance, financial performance.

Corporate governance and firms financial performance amongst private business enterprises in Uganda, a perspective from Lira City

This paper analyzes the state of corporate governance (CG) research in Nigeria. It consolidates the literature to identify the current state of CG research in Nigeria and to identity opportunities for future research in the literature. Among other things, the review show that the Board of directors (BOD) is the most explored corporate governance mechanism in the Nigerian corporate governance literature. Secondly, most studies focus on some governance mechanisms but ignore other governance mechanisms in firms. Thirdly, there is some consensus that the corporate governance failures in Nigeria is caused by multiplicity of factors mainly, lack of political will by the government to enforce corporate governance laws, deliberate refusal to comply with existing CG laws by politically connected firms, weak compliance by firms, weak enforcement by regulators, and conflicting codes in the country’s corporate governance codes. Also, the review shows that current CG studies do not systematically build on previous Nigerian CG studies which indicates a lack of direction in the Nigerian corporate governance literature. Regarding methodology, the findings reveal that most Nigerian CG studies are merely experimenting different methods of analysis without necessarily advancing the literature in a significant way. These findings have implications.

Corporate governance research in Nigeria: a review

https://link.springer.com/content/pdf/10.1007/s43546-020-00015-8.pdf

The general objective of the study was to investigate the relationship between strategic resource planning and performance of commercial banks in Nairobi County, Kenya. The study adopted descriptive research design and the target population was 43 registered commercial banks operating in Nairobi County. The researcher collected primary data using questionnaire which were administered to the respondents through drop and pick later method. Pilot study was conducted to establish the validity and reliability of the research instruments prior to the commencement of actual data collection exercise. Quantitative data collected in this study were analyzed using descriptive statistics and inferential statistics while qualitative data was analyzed using content analysis technique. Statistical Package for Social Sciences (SPSS) version 23 was used to aid in the data analysis. The findings were presented using tables and figures. As part of ethical consideration, the respondents was accorded due confidentiality and privacy, and their participation was voluntary. Correlation analysis results revealed that financial resource planning, human resource planning, infrastructure planning and experiential planning were positively and significantly correlated with performance of commercial banks based on the Pearson correlation coefficients obtained of 0.767, 0.672, 0.578 and 0.431 respectively. Model summary results established that that strategic resource planning explain 76.8% of the variations in performance of commercial banks according to obtained coefficient of determination (R2) of 0.768. Regression analysis revealed that holding all factors constant, performance of commercial banks would be -0.970. Further, holding other factors constant, financial resource planning, human resource planning, infrastructure planning and experiential planning would affect performance of commercial banks by 0.564, 0.214, 0.279 and 0.282 respectively. It is recommended to the management of the commercial banks to review their reward management systems so as to improve them to satisfaction of the employees. Further, management staff in charge of compensation activities should review the compensation policies at the banks. This will help in keeping hold of highly skilled and competent bankers as well as motivating them. Also, the researcher recommends to the management of commercial banks to put up and implement plans that enhances their banks reach to the rural areas in Kenya. This will translate to larger customer base and increased profitability.

Relationship between strategic resource planning and performance of commercial banks in nairobi county, kenya.

This paper sets out to investigate the impact of corporate governance on the banking sector performance. Precisely, it examined firstly, how each variant in the corporate governance structure discriminates against the performance of the banking sector and secondly whether the executive directors and non executive directors are associated negatively and significantly with non performing loans. To accomplish these objectives, the researchers employed discriminant analysis, correlation coefficient and the spearman rank correlation as an alternate method. The results of the analysis revealed that foreign ownership contributed about 187.77 percent of the total discriminant score for the function thereby propelling foreign ownership as the most discriminant ownership variable in banks performance and also implying that a bank’s chance of belonging to the group of highly performing banks increases as its foreign ownership increases. The poor performance of the board ownership is not as severe as that of the institutional ownership and government ownership which made the poor and poorer contributions respectively. The results also show that both executive directors and non-executive directors are not significantly associated with non-performing loans. On the basis of these findings, the researchers recommend that the Central Bank of Nigeria in liaison with the Nigerian Deposit and Insurance Corporation should extend intensive surveillance on the role of the directors in the banking sector.

/pdf/banking-sector-performance-and-corporate-governance-in-4h2fn9yw3p.pdf

Godwin Chigozie Okpara

Papers

Banking sector performance and corporate governance in Nigeria