Corporate Governance and Performance of State Owned Enterprises in Uganda

Abstract

Despite embracing corporate governance and risk management policies, Commercial State-Owned Enterprises (CSOEs) in Uganda are highly characterized by inefficiencies and financial irregularities. The purpose of this study was to establish the relationship between corporate governance, and performance of CSOEs in Uganda. The specific objectives of the study were; to examine the relationship between shareholding, investigate the relationship between board composition, ascertain the relationship between board characteristics, determine the relationship between audit committee independence and the performance of CSOEs in Uganda. Using a longitudinal methodology, the study analyzed the performance of 34 CSOEs. The results of fixed and random regression effects indicated that there is no correlation between shareholding and the performance of CSOEs. However, board composition, board characteristics, audit committee independence, and the performance of CSOEs were significantly correlated. The study recommended an improvement in board composition, board characteristics and audit committee independence to improve the performance of CSOEs.

Keywords: Corporate governance, Performance, Commercial State Owned Enterprises