The Assessment of the Role of Corporate Governance on Effective Performance: The Case of Habesha Cement S.C
No Thumbnail Available
Date
2019-06
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Addis Ababa University
Abstract
The purpose of the study was to assess the role of corporate governance has on effective performance in Habesha Cement S.C. The study adopted a case study design and a sample size of 88 respondents comprising stakeholders was selected using simple random sampling. Data was collected using structured questionnaires and in-depth interviews. The data was analyzed using Microsoft excel and SPSS version 23. The major findings of the study revealed that there is a significant relationship between commitment to corporate governance, and effective performance and commitment to corporate governance was a predictor of Habesha Cement S.C performance. Likewise, a significant relationship was observed between transparency and disclosure, and organizational performance where transparency and disclosure was seen to be a predictor of Habesha Cement performance. Further still, the relationship between structural and functioning of the board, and effective performance showed a significant relationship. In conclusion, commitment to corporate governance, structural and functioning of the board and transparency and disclosure as dimensions of corporate governance, determine effective performance at Habesha Cement S.C. The study recommends, therefore, that management of Habesha Cement should make efforts to ensure the existence of commitment to corporate governance, structural and functioning of the board and transparency and disclosure so as to promote Habesha Cement performance. The stakeholders in the sector should develop strategies in line with the study variable dealings to enhance effective performance in the cement industry. The strategies will help foster the development and implementation of governance structures which promote profitability, growth, cost reduction and liquidity
Description
Keywords
Commitment to Corporate Governance, Structural and Functioning of the Board, Transparency