Corporate governance, internal controls and performance of savings and credit cooperative societies in Bukedea district, Uganda.
No Thumbnail Available
Date
2025
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Busitema University.
Abstract
The study investigated the mediating role of internal controls in the link between corporate governance and the performance of Savings and Credit Cooperative Societies (SACCOs) in Bukedea District, Uganda. The study was directed by four specific objectives: to evaluate the impact of corporate governance on SACCO performance in Bukedea District; to investigate the correlation between corporate governance and internal controls in SACCOs within Bukedea District; to ascertain the influence of internal controls on SACCO performance in Bukedea District; and to analyze the degree to which internal controls facilitate the relationship between corporate governance and SACCO performance in Bukedea District. The study was based on Agency Theory and utilized a cross-sectional research design employing a quantitative technique. The target population consisted of 85 registered SACCOs, from which a sample of 70 was chosen and five members from each SACCO were randomly chosen, resulting in 350 targeted respondents. Out of these, 302 returned completed and valid questionnaires. Data was anlyzed using SPSS v27 utilizing both descriptive and inferential statistics. The correlation results showed that corporate governance had a strong link to internal controls and SACCO performance (r = .453**, p < 0.001). Internal controls also had a good link to performance. The findings of the regression showed that corporate governance was a strong predictor of both internal controls ( β = 0.453, p < 0.001) and SACCO performance (β = 0.401, p < 0.001). Internal controls also had a big favorable effect on performance (β = 0.538, p < 0.001). When internal controls were added, the direct regression coefficient of corporate governance on performance dropped to β = 0.198 (p = 0.001), showing that there was a partial mediating effect. The study found that good corporate governance improves SACCO performance both directly and indirectly by making internal control systems stronger. It suggests that boards should be more accountable, open, and involved with stakeholders, and those strong internal controls such separating tasks, regular audits, and compliance monitoring should be put in place. These policies protect members' money, build trust among members, and improve service delivery in Bukedea District. But the study was constrained by time and money, which made it hard to collect and analyze data in depth. The study was constrained by the volatile and confidential characteristics of financial institutions, as the SACCOs were hesitant to reveal comprehensive internal data.
Keywords: corporate governance, internal controls, performance, savings and credit, cooperative societies, regular audits, compliance monitoring.
Description
Dissertation.
Keywords
Citation
Otim, M G. (2025). Corporate governance, internal controls and performance of savings and credit cooperative societies in Bukedea district, Uganda. Busitema University. Unpublished dissertation.