African Journal of
Business Management

  • Abbreviation: Afr. J. Bus. Manage.
  • Language: English
  • ISSN: 1993-8233
  • DOI: 10.5897/AJBM
  • Start Year: 2007
  • Published Articles: 4137

Full Length Research Paper

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

Marus Eton
  • Marus Eton
  • Department of Business, Faculty of Economics and management Sciences, Kabale University, Kabale, Uganda.
  • Google Scholar
Fabian Mwosi
  • Fabian Mwosi
  • School of Post Graduate Studies, Bishop Burham University College, Kabale Uganda.
  • Google Scholar
Arthur Sunday
  • Arthur Sunday
  • Department of Business, Faculty of Economics and management Sciences, Kabale University, Kabale, Uganda.
  • Google Scholar
Sammy Godfrey Poro
  • Sammy Godfrey Poro
  • Adolecent Development Specialist, UNICEF Gulu Regional Office, Uganda.
  • Google Scholar


  •  Received: 03 July 2021
  •  Accepted: 27 August 2021
  •  Published: 30 September 2021

Abstract

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.