Corporate governance and financial performance in commercial banks in uganda

Corporate governance

Descriptive and Inferential statistics were used to analyse the data. As a result, various corporate governance reforms have been specifically emphasized on appropriate changes to be made to the board of directors in terms of its composition, size and structure Abidin, Kamal and Jusoff, While the public blames low wages in China for eliminating US jobs, the reality is that many US firms compete with high wage nations such as Canada, Germany, or Japan.

The correlation analysis indicated a positive and significant relationship between board size, director equity interest and board gender diversity but not with ROE.

The purpose of the study was to establish the relationship between corporate governance and financial performance; a case of commercial banks in Uganda. One source defines corporate governance as "the set of conditions that shapes the ex post bargaining over the quasi-rents generated by a firm.

Corporate governance and financial performance of commercial banks in Uganda.

Jensen and Meckling acknowledged that the principal-agent theory which was also adopted in this study is generally considered as the starting point for any debate on the issue of corporate governance. It also implies that when banks are governed well where managers are responsible for their actions and members have access to information concerning the operations and financial position of the organization, they are likely bound to perform better.

The study established the price-to-book value of the listed commercial banks. Non-executive directors are expected to outnumber executive directors and hold key posts, including audit and compensation committees.

Furthermore, according to Sanusithe current banking crises in Nigeria, has been linked with governance malpractice within the consolidated banks which has therefore become a way of life in large parts of the sector. The longitudinal survey research approach was used to collect data.

While corporate practices in the US companies came under attack, it appeared that the problem was far more widespread. The Cadbury and Organisation for Economic Co-operation and Development OECD reports present general principles around which businesses are expected to operate to assure proper governance.

Schjoedt observed that this poor corporate governance, in turn, was very much attributable to the relationships among the government, banks and big businesses as well as the organizational structure of businesses. In other cases where private ownership concentration was not allowed, the banks were heavily interfered with and controlled by the government even without any ownership share Williamson, ; Zahra, and Yeung, Enron, the Houston, Texas based energy giant and WorldCom the telecom behemoth, shocked the business world with both the scale and age of their unethical and illegal operations.


Descriptive and Inferential statistics were used to analyse the data. Poor corporate governance can also lead markets to lose confidence in the ability of a bank to properly manage its assets and liabilities, including deposits, which could in turn trigger liquidity crisis.

The study adopted the purposive sampling technique. The study concluded that corporate governance, accountability, managerial competences affect financial performance in commercial banks and therefore recommended that corporate governance, accountability and managerial competences should be emphasized in commercial banks to improve financial performance.

Furthermore, we focused only on banking industry because corporate governance problems and transparency issues are important in the banking sector due to the crucial role in providing loans to non-financial firms, in transmitting the effects of monetary policy and in providing stability to the economy as a whole.

The causes of the recent global financial crises have been traced to global imbalances in trade and financial sector as well as wealth and income inequalities Goddard, Without these policies, procedures and indicators, the board has no way of governing, let alone affecting the IT function in any way.

Further to that, the concept is gradually warming itself as a priority in the African continent. The choice of this period allows for a significant lag period for banks to have reviewed and implemented the recommendations by the CBN post consolidation code.

To investigate if there is any significant difference between the profitability of the healthy banks and the rescued banks in Nigeria. These changes in the corporate governance of banks raised very important policy research questions. The study relied on secondary sources of data to gather information for the variables.

The purpose of the study was to examine effect of corporate governance structure on financial performance of listed commercial banks in Rwanda.Inthe International Finance Corporation and the UN Global Compact released a report, Corporate Governance - the Foundation for Corporate Citizenship and Sustainable Business, linking the environmental, social and governance responsibilities of a company to its financial performance and long-term sustainability.

Federal Reserve Bank of New York Staff Reports Corporate Governance and Banks: What Have We Learned from the Financial Crisis?

Effect of Corporate Governance on Financial Performance of Listed Commercial Banks in Rwanda

Hamid Mehran Alan Morrison Joel Shapiro Staff Report no. June This paper presents preliminary findings and is being distributed to economists and other interested readers solely to stimulate.

Corporate Governance and Performance of Listed Commercial Banks during Financial Crisis: Evidence from China’s Banking Industry, Journal of the Washington Institute of China Studies.

Full Text: PDF. Persistent poor financial performance in commercial banks in Uganda yet stakeholders continuously alleged that corporate governance of these banks was doubtful, provoked the writing of this paper. Disclosure and trust, which constitute the integral parts of corporate governance, provide pressure for improved financial performance (Mark, ).

effect of corporate governance on financial performance of commercial banks listed in the nairobi securities exchange (nse) by jane w.

karanja. CORPORATE GOVERNANCE, DISCLOSURE, FINANCIAL REPORTING AND FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN UGANDA Introduction Uganda’s banking system is small, relatively undeveloped, and characterized by .

Corporate governance and financial performance in commercial banks in uganda
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