| dc.description.abstract | Corporate governance has attracted much attention, the world over, both in academic
literature and popular press, especially after the failure of some of well-known and
respected corporations in the world like Enron case. The objective of the study was to
determine the effect of corporate governance practices on the financial performance of
telecommunication firms in Somalia. The data obtained was analyzed using frequencies
and regression analysis. The study was descriptive targeting all the four
telecommunication companies in Mogadishu Somalia. Primary data that was collected
through administration of a structured questionnaire measuring such variables as
corporate governance index as indicated by size of the company, CEO duality, board
composition and number of the board meetings, and financial performance measured by
return on assets. Descriptive and inferential statistical analyses were conducted. Multi
regression model was used to find the linear relationship between the corporate
governance practices and financial performance of telecommunication companies in
Somalia.Regression results reveal that there is a positive relationship between dependent
variable (Financial performance) and independent variables (number of the board
meetings, board composition, size of the firm) and a negative relationship between the
financial performance and CEO duality and leverage of the firm. The study recommends
that there is need for the government and other partners to formulate a clear standards for
corporate governance practices, for setting rules of corporate transparency and disclosure
so that it is protected the investor rights specially outsider investors, there is also need for
gender balance consideration policy in board members | en_US |
