Please use this identifier to cite or link to this item: http://hdl.handle.net/20.500.12306/4756
Title: Corporate Governance and Financial Performance of Selected Commercial Banks in Mogadishu Somalia
Authors: Said, Hashi Ahmed
Keywords: Corporate Governance
Financial Performance
Commercial Banks
Issue Date: Oct-2019
Publisher: Kampala international international : College of Economics and Management
Abstract: The purpose of this study was to investigate the effect of corporate governance on financial performance of selected commercial banks in Mogadishu Somalia. It was guided by three objectives, that included i) to determine the effect of transparency on the financial performance in commercial banks Mogadishu Somalia; ii) to establish the effect of accountability on the financial performance in commercial banks Mogadishu Somalia; iii) to identify the effect of board composition on the financial performance in commercial banks Mogadishu Somalia. The study comprised of a population of 94 respondents from which a sample size of 76 respondents were selected, and a descriptive research design was used to collect data from 76 respondents using self-administered questionnaires as the main data collection instrument. Include the tools used to analyses which is self-administered questionnaire and documentary review checklist. The findings of this study were; transparency significantly affects financial performance of commercial banks in Mogadishu Somalia as indicated by the F-value=28.889 and Sig-value=.003, since the sig. value (0.000) was less than 0.05 and which is the maximum level of significance required to declare a significant effect, the findings revealed that there is a significant effect accountability has on financial performance of commercial banks in Mogadishu Somalia as indicated by the F-value=43.788 and Sig-value=.000, since the sig. value (0.000) was less than 0.05 and which is the maximum level of significance required to declare a significant effect. The findings also proved a positive significant effect board composition has on financial performance of commercial banks in Mogadishu Somalia as indicated by the positive F-value=136.347 and Sig-value=0.000, since the sig. value (0.000) was less than 0.05 and which is the maximum level of significance required to declare a significant effect. This implies that board composition highly affects the financial performance of commercial banks in Mogadishu Somalia. The researcher concluded that; applying of transparency as a corporate governance system can lead to the improvement in the financial performance of commercial banks since it increases on the quality and efficiency during corporate governance, the financial performance of commercial banks can be improved once accountability is effectively worked on because it helps to increase the customer responsiveness by reducing the demand gap thus giving satisfaction to the end customer by availing the desired financial services when needed, and board composition should base on customer orders, transaction forecasts and bank policy in order to stimulate customer demand which leads to the improvement in the financial performance of commercial banks. The study Recommended that; commercial banks should develop a good transparent system to monitor and track all the business transactions so that there is effectiveness in corporate governance and ensure to cover loopholes in the system to enhance financial performance of commercial banks, commercial banks should develop an effective accountability system for so as to boost financial performance of commercial banks, this will enable employees step up and doing what is best for the bank. The study contributed to knowledge by indicating that it is the fact that the research gap that has been filled by this study, it is the fact that the study covered both the content and geographical gap of corporate governance and financial performance of commercial banks. Another important revelation that can be attributed to this study is that it is now clear that corporate governance is somehow lacking among commercial banks in Mogadishu Somalia and little is done to improve the financial performance of banks in Mogadishu Somalia.
Description: A Thesis Submitted To The College Of Economics And Management In Partial Fulfillment Of The Requirements Of The Award Of Master Of Business Administration Of Kampala International University
URI: http://hdl.handle.net/20.500.12306/4756
Appears in Collections:Master of Business Administration - Main and Ishaka Campus

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