Board Governance, Risk Management and Financial Performance of Financial Institutions in Uganda.
No Thumbnail Available
Date
2023-08-31
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Makerere University Business School
Abstract
The study examined the relationship between board governance, risk management and financial performance of financial institutions in Uganda. The study was a cross-sectional research design along with a quantitative research approach. The population of this study comprised 33 financial institutions, containing 25 commercial banks, 3 credit institutions and 5 Micro-deposit taking institutions. A sample of 32 financial institutions was selected. Primary data was obtained from a Finance Officer, Risk Officer, and Internal Audit Officer from every financial institution using a structured questionnaire. The study used SPSS v. 25 to analyze data. Results were presented using frequency tables, correlation and regression analyses. This study obtained a positive relationship between board governance and financial performance. The study found a positive relationship between risk management and financial performance. The study found that jointly board governance and risk management predicted financial performance of financial institutions in Uganda. Moreover, it revealed that board governance was a better predictor of financial performance of financial institutions in Uganda. This study concludes that board governance is indispensable in determining the level of financial performance. It further notes that whereas risk management is also inevitable in causing significant variations in financial performance, board governance is the main factor to put more attention to. The research recommends; boosting board expertise; ensuring board independence; and making sure the board performs its activities. The study also suggests conducting longitudinal research examining the relationship between board governance, risk management and financial performance across all licensed financial institutions in Uganda; and examining board governance, risk management and financial performance among financial institutions in Uganda, applying both quantitative and qualitative research approaches.
Description
This is a master's thesis.
Keywords
Citation
Okwir, D. A. (2024). Board Governance, Risk Management and Financial Performance of Financial Institutions in Uganda. (Unpublished master’s dissertation). Makerere University Business School, Kampala, Uganda.