Ownership structure, corporate governance and financial performance of deposit taking microfinance institutions in Uganda
Loading...
Date
2018-04
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Kampala International University, College of Economics and Management
Abstract
The study set was sought to assess and identify the effectiveness of ownership structure, corporate governance and financial performance of deposit taking microfinance institution in Uganda. It was guided by the three specific objectives and tested three hypotheses, that included investigation whether there is a strong correlation between: i) the effect of ownership structure on the financial performance of deposit taking microfinance institutions, and ii) the effect of corporate governance on financial performance. Descriptive design was used in order to reveal connections, patterns and relationships since it allows for analysis of data to determine a pre-existing relationship and researcher makes no attempt to manipulate the independent variable. Annual Quantitative data (2011-2016) of selected DMI was used in this study. The results revealed that ownership structure positively and significantly affects financial performance (p<0.05). Similarly, corporate governance was also found to positively and significantly affect the financial performance of deposit taking microfinance institutions in Uganda. Basing on these findings, the study concluded that ownership structure and corporate governance have a positive and significant effect on the financial performance of DMIs. The study therefore made the following recommendations: the need for the management of deposit taking microfinance institutions to encourage shareholder ownership structure so as to ensure proper monitoring, accountability and improve performance, and the need for the management of deposit taking microfinance institutions to strongly encourage the inclusion of women and foreigners in their boards.
Description
A thesis submitted to the college of economics and management in partial fulfilment of the requirement of the award of Masters of Business Administration (Finance and Banking) Of Kampala International University, Uganda
Keywords
Ownership structure, Corporate governance, Financial performance, Deposit taking microfinance institutions, Microfinance institutions, Uganda