Search results

1 – 3 of 3
Article
Publication date: 9 January 2017

Stephen Korutaro Nkundabanyanga, Brendah Akankunda, Irene Nalukenge and Immaculate Tusiime

The purpose of this paper is to study the impact of financial management practices and competitive advantage on loan performance of microfinance institutions (MFIs).

2729

Abstract

Purpose

The purpose of this paper is to study the impact of financial management practices and competitive advantage on loan performance of microfinance institutions (MFIs).

Design/methodology/approach

In this cross-sectional study, the authors surveyed 70 MFIs in Kampala, Uganda. The authors applied principal component analysis to reduce the number of factors and identify the important elements that capture financial management practices, competitive advantage and loan performance of MFIs. The authors put forward and tested three hypotheses relating to the significance of the relationship between these three variables of MFIs using the statistical software package, SPSS and also apply the normal theory approach developed by Sobel (1982) and Baron and Kenny (1986) in testing the mediation by competitive advantage.

Findings

Robust financial management practices are associated with better loan performance of MFIs. Results also reveal a significant positive relationship between the competitive advantage of the MFIs and their loan performance. Furthermore, a significant positive relationship between competitive advantage and loan performance is found. Moreover results also show a full mediation effect of competitive advantage on the association of financial management practices and loan performance, implying that the association of financial management practices of the MFIs on their loan performance is entirely through their competitive advantage.

Research limitations/implications

Although there is plenty of literature on loan performance, financial management practices and competitive advantage, there is scarce literature on their effective conceptualization. This together with the imprecise definition of competitive advantage may have affected conceptualization of the authors study. Thus, in this study, the authors do not claim highly refined measurement concepts. Moreover, many of the extant studies for instance have measured loan performance quantitatively, yet process factors which are inherently qualitative in nature can better explain variances in loan performance concept. More research is therefore needed to better refine qualitative concepts used in this study.

Practical implications

Efforts by the MFIs management to improve loan performance must be matched with adoption of financial management practices that provide MFIs with sustained competitive advantage over their rivals.

Originality/value

In order to explain loan performance of MFIs, and drawing from social economics, management and accounting strands, this study shows that assessing the role of competitive advantage in the relationship between financial management practices and loan performance is imperative. Also, many of the extant studies have measured loan performance quantitatively, yet process factors or antecedents which are inherently qualitative in nature can better explain variances in loan performance concept. Thus this study calls for the refinement of loan performance concept and accounting for endogeneity.

Details

International Journal of Social Economics, vol. 44 no. 1
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 21 December 2023

Brendah Akankunda, Stephen Korutaro Nkundabanyanga, Muyiwa Samuel Adaramola and Twaha Kigongo Kaawaase

The purpose of this study is to investigate the connections between the regulatory governance, human capital, stakeholder orientation, management control systems (MCSs) and…

Abstract

Purpose

The purpose of this study is to investigate the connections between the regulatory governance, human capital, stakeholder orientation, management control systems (MCSs) and sustainable performance (SP) of power companies. The authors especially looked at how much regulatory governance, human capital, stakeholder orientation and MCSs affect the SP across power companies in Uganda.

Design/methodology/approach

This is a cross-sectional and correlational study. Data were collected from 105 power companies using a questionnaire and analysed using SPSS.

Findings

Stakeholder orientation, MCSs, human capital and regulatory governance significantly predict variances in the SP of power providers in Uganda. Stakeholder orientation is the most important predictor of SP of power companies.

Research limitations/implications

The absence of validation from important stakeholders and the major reliance on company-provided data in existing research on SP raises the possibility of self-desirability bias. To evaluate and verify the information supplied by firms with external stakeholders, further studies might consider using an explanatory mixed methods technique, in which quantitative data are initially gathered from the managers of power companies and analysed and then validated by interviews with important stakeholders.

Originality/value

Using stakeholder, legitimacy and resource-based theories has provided a better explanation for SP which is a multi-dimensional notion. Moreover, the study adds to the body of perception-based research that offers direct management incentives for SP. The perspectives of managers have been gathered through the use of self-administered questionnaires to gather impressions of managers of businesses, which has helped to tap into all aspects of SP. The study’s results offer, probably for the first time to the best of the authors’ knowledge, evidence of the contextual elements that affect SP in African nations like Uganda particularly in the power sector.

Details

International Journal of Energy Sector Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1750-6220

Keywords

Open Access
Article
Publication date: 10 March 2021

Twaha Kigongo Kaawaase, Catherine Nairuba, Brendah Akankunda and Juma Bananuka

The purpose of this study is to establish the relationship between corporate governance attributes (board expertise, board independence and board role performance), internal audit…

24488

Abstract

Purpose

The purpose of this study is to establish the relationship between corporate governance attributes (board expertise, board independence and board role performance), internal audit quality and financial reporting quality using evidence from Uganda's financial institutions.

Design/methodology/approach

This study research design is cross sectional and correlational. The study used a questionnaire survey of Chief Finance Officers, Senior Accountants and Internal audit managers of financial institutions in Uganda. Data were analyzed with the help of Statistical Package for Social Sciences.

Findings

Results indicate that board expertise and board role performance are significantly associated with financial reporting quality. Also, internal audit quality is significantly associated with financial reporting quality. Board independence is not a significant predictor of financial reporting quality.

Originality/value

This paper provides insights of what matters for financial reporting quality in Uganda's financial reporting quality. It uses the qualitative characteristics of financial statements to measure financial reporting quality. This paper focuses mainly on the conceptual framework developed by the International Accounting Standards Board.

Details

Asian Journal of Accounting Research, vol. 6 no. 3
Type: Research Article
ISSN: 2443-4175

Keywords

1 – 3 of 3