THE RELATIONSHIP BETWEEN BOARD SIZE AND FINANCIAL PERFORMANCE OF HOUSING FINANCE BANK, WAMPEWO HEAD OFFICE, KAMPALA, UGANDA. A CROSS-SECTIONAL STUDY.

Oliva Night; Muhamad Ssendagi

doi:10.70572/agp.v2i5.95

Authors

Oliva Night Faculty of Graduate Studies and Research, Team University
Dr. Muhamad Ssendagi Faculty of Graduate Studies and Research, Team University

DOI:

https://doi.org/10.70572/agp.v2i5.95

Keywords:

Board size, financial performance, Housing Finance Bank, Wampewo head office, Kampala

Abstract

Background

Corporate governance involves directing and controlling a firm's activities through structures, procedures, and rules. Its purpose is to serve the corporation's best interests, raising questions about whose behalf and to what end the firm is governed. This study investigates the relationship between board size and the financial performance of Housing Finance Bank, Wampewo Head Office, Kampala-Uganda.

Methodology

The study employed a cross-sectional research design, integrating quantitative and qualitative methods. A sample of 80 respondents was selected from a population of 100 using the Krejcie and Morgan (1970) sample size determination table. Data collection involved questionnaires and interviews, with qualitative data analyzed through content analysis and quantitative data examined using descriptive statistics (mean and standard deviation).

Results

The study concludes that there is a significant and positive relationship between corporate governance variables and the financial performance of Housing Finance Bank, Uganda. Specifically, board size (r = 0.765, p = 0.000) exhibited moderately strong correlations with financial performance. Regression analysis reveals that the variable explains 42% of the variance in financial performance. The coefficients indicate that a one-unit increase in board size and quality leads to a 0.25 increase in financial performance. These findings suggest that effective corporate governance practices, particularly those related to size, are crucial drivers of financial performance in Housing Finance Bank, Uganda.

Conclusion

The study concludes that there is a meaningful and statistically significant relationship between the size of the board and the financial performance of Housing Finance Bank Uganda. Larger boards tend to facilitate better oversight, richer expertise, and diverse perspectives, all of which contribute to improved financial results.

Recommendation

The study recommends that Housing Finance Bank strengthen its corporate governance practices to enhance financial performance.

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