Corporate Governance Practices and Financial Performance in Institutions of Higher Learning: A Case Study of Uganda Martyrs University and International Health Sciences University.

Abstract

NALUMU JANE (2011-M102-20068) Corporate Governance Practices and Financial Performance in Institutions of Higher Learning: A Case Study of Uganda Martyrs University and International Health Sciences University The study examined the relationship between Corporate Governance and Financial Performance in Institutions of Higher Learning, specifically private Universities. Under Corporate Governance, the study considered three dimensions; disclosure and transparency, board roles and responsibility, and board effectiveness while financial performance was measured through efficiency, revenue sources and effectiveness. The study examined the relationship between disclosure and transparency, board roles and responsibility and board effectiveness, with financial performance. A case study (multiple) research design was adopted in a quantitative research approach which was done cross-sectionally to establish the relationships as stated in the objectives. The Statistical Package for the Social Sciences (SPSS) version 16 was used in applying Spearman’s rank correlation coefficient and multiple regression analysis to determine the magnitude of the relationship and prediction of financial performance respectively, of institutions of higher learning in Uganda. The findings indicated a positive and significant relationship between disclosure and transparency and financial performance, board roles and responsibility, and financial performance and board effectiveness and financial performance. Based on these findings the study concludes that Corporate Governance is a critical aspect to achieve financial performance in institutions of higher learning. The study recommends that Council should be constituted by members with required skills and knowledge in order to provide technical expertise and also be able to direct and control the University. There is need for the University Management to generate various forms of ideas to expand the revenue base than relying on students‟ tuition only. There is also need to improve on board effectiveness to realise improved financial performance. Key words: Corporate, Governance, Financial, Learning, Practices.