Corporate Board Size and Financial Performance of Private Limited Companies in Uganda

Abstract

The purpose-The paper seeks to compare the corporate board size and the financial performance of private companies in Uganda.Methodology-The paper adopted a positivist paradigm besides a cross-sectional study design. Researchers gathered quantitative data from 394 companies in Western and Central Uganda. An open questionnaire was administered to board members and executives from companies. Pearson correlation and standard regression techniques were used for data analysis.Findings-A significant positive relationship between the performance of the firm and the board size among private companies was established from the findings.Unique Contribution to Practice and Policy-This study will provide a precise and direct understanding of the relationship between board size and performance.The practical implications-The study recommends that private companies should recruit large boards of directors due to their diversified skills and connections that increase firm value.Research limitations-The study falls short of examining the influence of other characteristics of the board, such as composition, and leadership structure, on financial performance but solely concentrates on the board size. Besides, it was cross-sectional and generalized all private companies without considering industry-specific factors that could have changed the results.Originality/value-This is the first study that focuses on exploring the comparison between the corporate board size and the financial performance of private companies in Uganda.

The Effect of Corporate Social Responsibility and Ownership Structure on Financial Performance of Consumer Non Cyclicals Companies in Indonesian

“…Over time, managers gain increased experience in managing the company. Increasing firm age has an effect on increasing innovation and decision making accuracy where more mature companies have decision making that avoids risks and predicts more decisions that companies will make (Santos & Castanho (2022), Simanjuntak et al, (2022), Rwakihembo et al, (2023).…”

“…Over time, managers gain experience in managing companies so that they have a positive effect on company performance (Santos & Castanho, 2022). Increasing the age of the company has an effect on increasing innovation and decision-making accuracy where more mature companies have decision making that avoids risks and predicts more decisions to be taken by the company, increases experience in the market, advanced liquid trade, has diversified activities so as to gain a competitive advantage compared to new companies (Simanjuntak et al, 2022, Rwakihembo et al, 2023.…”

Board Assurance and Financial Performance of Selected Saccos in Kiruhura District, Uganda

“…Furthermore, according to Esokomi and Mutua (2018), effective governance practices are necessary to lower investor risk, assign members responsibilities, provide transparency, draw in investment money, and enhance SACCOs' financial success.In order to give management direction, authority, and oversights regarding how to strike a balance between their own interests and those of the shareholders and other stakeholders, the board of directors and its related committees act on behalf of and in the best interests of the SACCO's shareholders and other stakeholders. This process is known as corporate governance, according to Rwakihembo et al (2020). Corporate governance is a system of rules that influences how a corporation conducts business and creates a link between stakeholders, management, and the board of directors.…”