The role of corporate governance in the financial performance of higher education institutions

Abstract

The study aimed at assessing the role of Corporate Governance on the financial performance in higher education institutions taking Uganda Martyrs University – Nkozi as the case study. The study specific objectives based on the elements of corporate governance were board practices, control environment, transparency and financial performance. The study used cross sectional research design with both quantitative and qualitative approaches. The study sample involved council, senate, academic and administrative staff that was selected using purpose sampling technique. Data from 110 respondents was collected from questionnaires. The analysis was conducted at two levels namely bivariate and univariate. Since univariate analysis entailed description of a single variable and its attributes, frequency tables were used to present the data. At the bivariate level, a regression model was generated to ascertain the relationships between predictor variables and dependent variable. To ensure quality control, there was pretesting the tools and using the Cronbach’s alpha to ascertain internal validity. The research revealed that there are corporate governance practices within Uganda Martyrs University considering several aspects examined by the study as the strength of the institutional corporate governance practices .However, there are glaring areas that have shown gaps in the corporate governance of the institution such as the level of resource mobilization towards corporate governance, risk management framework, internal audit independence , management information system for effectiveness of internal controls. The study recommends that there should be good corporate governance practices within to the institution in order to achieve transparency, independence, fairness, accountability, ethical conduct and good corporate citizenship. This will lead to better financial performance in the institution.