The Effect of Corporate Governance on the Financial Performance of Beverage Companies in Uganda
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Date
2024-06-12
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Uganda Christian University
Abstract
The study was conducted in Coca cola bottling company and focused on corporate governance and
financial performance of commercial banks in Uganda: A case of Stanbic bank Uganda limited.
Research objectives were to; establish the relationship between audit committees and financial
performance, establish the relationship between accountability and financial performance and
finally, find out the influence of separation of ownership on financial performance of Stanbic bank
(Uganda) Limited. A cross sectional survey research design was employed and both quantitative
and qualitative approaches were used. Data was collected using questionnaires, interviews and
observation, and analyzed using Pearson correlation coefficient and regressions.
The study findings revealed that: auditing and financial performance are significantly related; there
is a significant relationship between accountability and financial performance of Stanbic bank and;
separation of ownership moderately influences financial performance of Stanbic bank Uganda
limited. It was recommended that; i) Audit committees should be strengthened and members
should devote more time and commitment to perform their oversight function and appointment to
the committee should be based on technical competency of the members ii) Regulators and board
should ensure enhanced accountability that is, transparency and disclosure for effective market
discipline in accordance with professional best practices iii) Shareholders interference with the
work of directors should be minimized as much as possible. The study makes an original
contribution by suggesting that there is a positive relationship between corporate governance and
financial performance of a firm. These insights in explaining the relationships are useful for
academic understanding and business and public policy formulations.