Corporate Governance and Nonfinancial Performance in Financial Institutions in Uganda
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Date
2016
Journal Title
Journal ISSN
Volume Title
Publisher
SAS Publishers
Abstract
This study investigates the influence of corporate governance on non-financial performance in financial services sector in Uganda. Corporate governance mechanisms examined included ownership concentration, board composition, CEO tenure and CEO turnover through multi-theory lenses of agency theory, stakeholder theory, resource-based theory and institutional theory. Non-financial performance was measured using employee satisfaction, social performance and environmental performance. The study objectives were to examine the relationship between ownership structure and nonfinancial performance, examine the relationship between board composition and nonfinancial performance, to assess the relationship between CEO tenure and nonfinancial performance and to determine the relationship between CEO turnover and nonfinancial performance. To accomplish the research objectives, a survey design using a questionnaire and secondary data was adopted. Secondary data were obtained from the annual reports and websites of 36 regulated financial services firms for the period 2008-2014. The data were analysed using the Statistical Package for the Social Sciences (SPSS) version 20 in which correlation and ordinary least squares (OLS) multiple regression tests were performed. Results showed that the relationship between corporate governance and non-financial performance is positive (r = 0.1397, p = 0.0514).
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Keywords
Corporate Governance,, non financial performance, Financial Institutions,, Ownership concentration,, Board composition,, CEO Tenure,, CEO Turnover