Examining corporate governance practices in government parastatals in Uganda

Abstract

The study examined the Corporate Governance practices in Government Parastatals in Uganda. The study was prompted by Organisation turbulences as a result of the constitutional policy and decision making processes in Government Parastatals. The study aimed at examining the corporate governance practices in government parastatals by evaluating the nomination process of board of directors, the different characteristics of the board of directors including board size and gender differences, the independence of board of directors and the performance of the board of director. Descriptive study was conducted in selected government Parastatals in Uganda. Statistical Package for Social Scientists (SPSS) was used and analytical frequency tables were generated to determine the magnitude of the nomination process of board of directors, the different characteristics of the board of directors including board size and gender differences, the independence of board of directors and the performance of the board of director respectively. The findings revealed that corporate governance variables namely; the nomination process of board of directors, the different characteristics of the board of directors including board size and gender differences, the independence of board of directors and the performance of the board of director, had a negative effect on financial performance while policy and decision making had a significant negative responses in the selected governmental parastatals. Corporate Governance had a significant negative response with the nomination process of board of directors a significant negative response with board effectiveness, and contingency had a significant negative response with board roles and effectiveness. There is need for Government Parastatals to formulate policies and make decisions that can stand test of time. Board of committees; understand their roles, the independence of board of directors and the performance of the board of director to realize improved financial performance in government parastatals.