EFFECTS OF CORPORATE GOVERNANCE PRACTICES ON THE FINANCIAL PERFORMANCE OF LISTED COMPANIES IN ZIMBABWE
Dublin Core
Title
EFFECTS OF CORPORATE GOVERNANCE PRACTICES ON THE FINANCIAL PERFORMANCE OF LISTED COMPANIES IN ZIMBABWE
Creator
ALEC JEMWA
Description
The purpose of this study was to assess the effects of corporate governance practices on the
financial performance of companies that were listed on the Zimbabwe Stock Exchange (ZSE)
from 2014 to 2019. The major objectives of the study were to assess the overall corporate
governance rating of ZSE-listed companies and to examine the significance of corporate
governance practices on the financial performance of those listed companies. The researcher
chose companies listed on the ZSE as they play a pivotal role in the national economy and
their corporate governance is regulated by ZSE. The study adopted a positivism paradigm and
employed the quantitative approach. The quantitative approach is premised on gathering
scientific data through objective means which include experiments and surveys. Corporate
governance was measured using the Blau (1977) model whilst the firm performance was
measured using accounting ratios. Firm performance panel data was collected from the ZSE-
listed firms‟ annual financial reports that were available on their respective websites for the
period 2014 to 2019. Data were analysed using the PCSE regression analysis model. The
research established that most ZSE-listed companies surpassed the minimum corporate
governance practices set by ZSE. However, there was a high level of non-disclosure of some
information which should ordinarily be made available to stakeholders in the Annual reports.
The study also established that financial performance was sector related. Corporate
governance practices had a varying degree effect on certain accounting ratios, and some did
not have a significant correlation with other financial performance indicators. The study
concluded that some corporate governance practices are correlated to the entity‟s financial
performance and that corporate governance practices affect the company‟s financial
performance to a different extent. It is, therefore, recommended that people charged with
corporate governance should institute sound corporate governance practices to enhance
companies‟ financial performance. Sound corporate governance practices result in sustainable
good financial performance.
financial performance of companies that were listed on the Zimbabwe Stock Exchange (ZSE)
from 2014 to 2019. The major objectives of the study were to assess the overall corporate
governance rating of ZSE-listed companies and to examine the significance of corporate
governance practices on the financial performance of those listed companies. The researcher
chose companies listed on the ZSE as they play a pivotal role in the national economy and
their corporate governance is regulated by ZSE. The study adopted a positivism paradigm and
employed the quantitative approach. The quantitative approach is premised on gathering
scientific data through objective means which include experiments and surveys. Corporate
governance was measured using the Blau (1977) model whilst the firm performance was
measured using accounting ratios. Firm performance panel data was collected from the ZSE-
listed firms‟ annual financial reports that were available on their respective websites for the
period 2014 to 2019. Data were analysed using the PCSE regression analysis model. The
research established that most ZSE-listed companies surpassed the minimum corporate
governance practices set by ZSE. However, there was a high level of non-disclosure of some
information which should ordinarily be made available to stakeholders in the Annual reports.
The study also established that financial performance was sector related. Corporate
governance practices had a varying degree effect on certain accounting ratios, and some did
not have a significant correlation with other financial performance indicators. The study
concluded that some corporate governance practices are correlated to the entity‟s financial
performance and that corporate governance practices affect the company‟s financial
performance to a different extent. It is, therefore, recommended that people charged with
corporate governance should institute sound corporate governance practices to enhance
companies‟ financial performance. Sound corporate governance practices result in sustainable
good financial performance.
Publisher
Zimbabwe Open University
Date
2024
Files
Collection
Citation
ALEC JEMWA, “EFFECTS OF CORPORATE GOVERNANCE PRACTICES ON THE FINANCIAL PERFORMANCE OF LISTED COMPANIES IN ZIMBABWE,” ZOU Institutional Repository, accessed July 6, 2025, https://ir.zou.ac.zw/items/show/418.
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