The Effect of Corporate Governance Practices on Company’s Financial Performance.

Nayingo,, Joseph Samson (2025) The Effect of Corporate Governance Practices on Company’s Financial Performance. Masters thesis, The Open University of Tanzania.

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Abstract

This research sought to examine the effect of corporate governance practices on company’s financial performance in Tanzania. The specific objectives were to determine the effect of transparency, independence and accountability on company’s financial performance. The study used a quantitative research approach using a cross-sectional design. The study used stratified random sampling where employees were grouped and then randomly picked to participate in the study. Primary data were collected using self-administered questionnaires. A total of 90 completed questionnaires were returned. Descriptive and inferential statistics were computed to describe characteristics of each study variable. Multiple regression analysis was used to establish causal relationships between variables. The study findings indicated that Transparency, Independence and Accountability have positive effect on company’s financial performance. The study concludes that transparency, independence and accountability are crucial for enhancing financial performance. The study recommends that the management should disclose profit and loss and other relevant information to stakeholders to ensure there is transparency within the company’s operations, clearly define the roles of employees, have proper composition of the board and comply to the company’s mission, values, goals to ensure there is accountability and emphasize operating structure to each board member and committee in all aspects that aid independence within the company’s operations. Keywords: Financial Performance, Accountability, Independence, Transparency

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