DOI: 10.36347/sjebm.2017.v04i02.003

Pages: 73-76

This article evaluates the relationship between corporate governance practices and financial performance of savings and credit cooperatives in Kyamuhunga people‟s village bank, Bushenyi District, western Uganda. The study adopted a cross sectional study design which was both quantitative and qualitative because John, Senbet & Amin assert that studies of this nature may be more productively undertaken because data can be collected from a cross section of a population in a short time and then results generalized to represent the entire population of the study. A structured questionnaire and an interview guide were used to collect data from the respondents. Data was analyzed using frequencies, percentages, means, standard deviation and Pearson linear correlation coefficient. The findings revealed that there was a positive correlation between the board size and financial performance. It was also revealed that board size of the village banks contributes to the financial performance for instance the smaller board size, the lesser the expenditure and thus affecting fairly the profitability of the village banks. The study recommended that Village banks should not have a very big board size because this affects their financial performance since expenses like sitting allowances may always be much. Top management should quite often organise seminars board members to fully be equipped with management knowledge and skills for better decision making.