Corporate Governance And Organizational Performance Of Commercial Banks In Uganda: A Case Of Stanbic Bank Uganda Limited

ABSTRACT

The purpose of the study was to investigate the influence that corporate governance has on organizational performance in Stanbic Bank. The study was guided by the following specific objectives; effect of transparency on organizational performance; contribution of accountability on organizational performance; and effect of board composition on organizational performance at SBUL. The study adopted a case study design and a sample size of 97 respondents comprising staff was selected using simple random sampling. Data was collected using structured questionnaires and in-depth interviews. The data was analyzed using Microsoft excel and SSPS version 20. The major findings of the study revealed that there is a significant relationship between transparency and organizational performance and transparency was a predictor of bank performance. Likewise, a significant relationship was observed between accountability and organizational performance where accountability was seen to be a predictor of bank performance. Further still, the relationship between board composition and organizational performance showed a significant relationship. In conclusion, transparency, accountability and board composition as dimensions of corporate governance, determine organizational performance at Stanbic Bank. The study recommends, therefore, that management of SBUL should make efforts to ensure that there is transparency, accountability and effective board composition so as to promote bank performance. The stakeholders in the financial sector should develop strategies in line with the study variable relationships to enhance organizational performance in financial institutions. The strategies will help foster the development and implementation of governance structures which promote profitability, cost reduction, growth and liquidity.