Effects of corporate governance practices on the financial performance of SMEs in Zimbabwe

Author

Emmanuel Chingora

Title

Effects of corporate governance practices on the financial performance of SMEs in Zimbabwe

Abstract

This comprehensive study explores the effects of corporate governance practices on the financial performance of SMEs operating within the context of Zimbabwe. It investigates different aspects of corporate governance such as board size, diversity, managerial competency, internal controls and financial transparency within the Zimbabwean context. The goals were to understand the corporate governance practices adopted by SMEs, identify challenges in their implementation and explore the link between these practices and financial performance. Data was collected through questionnaires and interviews with SME owners and staff involving 120 respondents. Qualitative and quantitative approaches were both utilized in this research process to gather data. Regression analysis was utilized to pinpoint the primary independent variables influencing SMEs' financial performance. The findings revealed a positive correlation between corporate governance standards and financial performance among SMEs. In conclusion, the report recommends the establishment of a clear legal framework for corporate governance in SMEs along with initiatives to raise awareness and provide education on these practices.

Date

June 2024

Publisher

BUSE

Keywords

small to medium-sized enterprises

corporate governance

financial performance

Supervisor

N/A