Corporate Governance and Financial Performance of Savings and Credit Cooperative Societies in Uganda. A Case of Kiruhura District
Date
2025
Authors
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Journal ISSN
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Publisher
Kabale University
Abstract
Corporate governance has garnered significant global attention over the years, with matters of effective corporate governance becoming subject matter for public and academic discourse. This study has taken an interest in investigating the relationship between corporate governance and financial performance in SACCOs in Kiruhura District, Uganda. The study investigated the moderating role of government policies on the relationship between corporate governance and financial performance. The research was molded in an integrative framework on mixed theories of agency and stewardship. To investigate the number of hypotheses, the researchers set up a positivist paradigm and chose a cross-sectional design. Through purposive sampling, 35 SACCOs were chosen from Kiruhura district. Data analysis was done using descriptive statistics by SPSS version 25.0 for procedures concerning the initial assessment through multicollinearity check, calculation of mean and standard deviation, and checking management of outliers and missing values. The following SEM using Jaffrey’s Amazing Statistical Program (JASP) version 0.17.2.0 was then applied to investigating the relationship amongst the variables in the conceptual model. The significance of corporate governance on financial performance in SACCOs in Kiruhura district was statistically proven beyond p < 0.05. The finding further points out that government policies are the mediation construct between corporate governance and financial performance. This study takes the findings that justify theories of SACCOs' financial performance. It underscored that equitably corporate governance etched in the SACCO is as a key facilitator of better financial performances. Subsequent research is anticipated to examine longitudinal designs, qualitative methodologies, and international comparisons to address the identified gaps and limitations. In creating a circle of agency theories, the amount in which corporate governance positively affects the financial performance of SACCOs is now empirically found; at the same time, government policies moderate between them. The study also highlights that empirical evidence is applied to cross-sectional design working within a positivist framework, indicating variables in constructing the linkage. The study recommends that the managers of SACCOs focus significantly on the corporate governance practices and in ensuring adherence to corporate governance principles to better the decision-making and performance of the firms. Result of the study shows that government policies moderate the relationship between corporate governance and financial performance of SACCOs. Corporate governance influences the financial performance of SACCOs while this effect is moderated by government policies. Managerial implications for this study may entail an improvement in the general standards of transparency, stakeholder communication, and accountability toward all stakeholders.
Description
Keywords
Corporate Governance, Financial Performance, SACCOs, Uganda, Government Policies, Board Accountability, Board Assurance, Board Risk Management, Kiruhura District, Agency Theory, Stewardship Theory
Citation
Kyabarongo, B. (2025). Corporate governance and financial performance of savings and credit cooperative societies in Uganda: A case of Kiruhura District [Doctoral dissertation, Kabale University]