The Impact of Corporate Governance in The Operations of the Stock Market.

TABLE OF CONTENTS:

DECLARATION.................................................................................................................. II

APPROVAL OF SUBMISSION..................................................................... .......... III

ACKNOWLEDGEMENT....................................................................................................... IV

DEDICATION........................................................................................................................ V

TABLE OF CONTENTS......................................................................................... VI

LIST OF TABLES....... .......................................................................................... VII

LIST OF DIAGRAMS .. . ... . . . .. . . .. . .. .. . . . . .. . . .. . . . .. . . .. . . . ... . .. . . . . . . . .. . . . . . . ... . .. .. . . .. .. . .. . . .. . . . . ... VIII

LIST OF APPENDICES........................................................... ....... .... ............. ....... IX

ABBREVIATIONS .......................................................... :...................................................... X

ABSTRACT............................................................................................................................ XI

CHAPTER ONE.... .. .................................... ............ ... .... .................... ..... .............. -!-

INTRODUCTION... ........................ ... .................................................. .... ......... ..... -1-

BACK GROUND OF THE STUDY........................................................ ............................... .. .............. -1-

HISTOR Y OF CORPORA TE GOVERNANCE....................................................................................... -ICAP IT AL MARKETS AUTHORITY........................................ ........................... ........................ .......... -3-

UGANDA SECURITIES EXCHANGE........................................................................ ..... ... .................. -4-

STATEMENT OF THE PROBLEM........................................................................ ....................... ....... -5-

SIGNIFICANCE OF THE STUDY................................................................. .............. ............ ............. -5-

SCOPE OF THE STUDY........................................................................... ................ ................. ......... -6-

-Managerial scope: -6-

............................................................................................ .................................................................

Geographical scope. . . . .. .. . . . . . . .. . . . . . . . . .. . . . .. . . .. .. . .... .. . . . . . . .. . . . . . . .. .. ... . . ... . . . .. ... . . .. . . . . . . . .. . . . .. .. . .. ... . . . . . . . . . . . . . . . . .. . . . . . .. . . .. . . .. . . . .. . . . . . . . . .. . . . -6- OBJECTIVES OF THE STUDY............................................. ....................................................................................... -7-

GENERAL OBJECTIVES OF THE STUDY.............................................................................. ............. ........................ -7-

SPECIFIC OBJECTIVES OF THE STUDY.......... ................................................................................................. .. ...... . -7-

RESEARCH QUESTIONS................................. ........................................................................................................... -7-

CONCLUSION................... .... ......... . .. ................................... .. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . -8-

CHAPTER TWO.................................................................................................................... -9-

LITERATURE REVIEW........................................................................................................ -9-

INTRODUCTION........... ................. .......................................... ... .......................................... .... .......... -9-

DEFINITION OF CORPORA TE GOVERNANCE.................................................................................. -10-

DEFINITION OFCAPITAL OF MARKETS............................................. ...... .... .. .............. ........ ..... ....... -12-

TYPES OF CAPITAL MARKETS............................................................................................ ............. -13-

BOND MARKETS............................................................................... ............................ .................... . -13-

MORTGAGE MARKETS...................... ....... ......................... ... ............. ........................................... ... .. -14-

STOCK MARKETS..................................................... ....................... .............. ............. ................... .... -14-

IMPORTANCE OF CORPORATE GOVERNANCE............................... ................... ................ ........... . -ISHOW UGANDA SECURITIES EXCHANGE OPERATES.. ....................... .. ... ... .................. ................... -16-

THE IMPACT OF CORPORATE GOVERNANCE ON THE OPERATIONS OF THE UGANDA

VI

SECURITIES EXCHANGE.............................. ................................................. . ........ . ......... .... ...... -1 8-

CONCLUSION............................................................................................................................................ -21-

CHAPTER THREE ...................................................... :......................................................... -22-

METHODOLOGY .................................................................................................................. -22-

APPROACH TO THE STUDY ............................................................ ..................... ......... .... :.. ............. -22-

RESEARCH DESIGN........................ ... ............................................................................... -22-

STUDY AREA .................................................................................................. , ... ,............................. -23-

RESEARCH PROCEDURE.................................................................................................................. -24-

SAMPLE AND PROCEDURE SIZE........................................ .. .......................... .. . .. . . .. .. . . . . .. . . . . .. .... .. -24-

DA TA COLLECTION . . . .. .. . .. .. . .. .. .. .. .. . . . .. .. . ... ... .. .. .. .. . .. .. . . . . .. .... .. .. .. ... . . .. . . .. . . . . . . . . . .. ..... .. .. . . . . . .. .. . . . .. ... .. . . .. -24-

PRIMARY DATA.................................................................................................. ...... . ..... -25-

/nterviews ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... . ... ... ... ... ... .... ... ...... .. ..... ...... . .. .. .. ..... . .. .. ..... .. .. .. .... -2 5-

Questionnaires ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... . ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... -2 5-

0bservation ... ... ... ... ... ... ... ... ... ... ... ... . ... ... ... ... ... ... ... ... ... ... .... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... .. -26-

SECONDARY DATA............................................. .. ...................................................... ....... ..... ......... ....... -26-

DATA PROCESSING AND ANALYSIS........................................................ .. ................. ... ...... ........... ...... ... .. -26-

EXPERIENCED LIMITATIONS OF THE STUDY................................................ ..... ..... .................................... .......... -27-

CONCLUSION............................................................................................................................................ -27-

CHAPTER FOUR.................................................................................................................. -28-

DATA PRESENTATION, INTERPRETATION AND DISCUSSION................................................. - 28-

INTRODUCTION............................................................................................... ........ .......... ... ... .... -28-

PRESENTATION AND FINDINGS........................................................ ....... ..................... .................. -28-

CATEGORIZATION OF RESPONSES................................................................ .. .... .... .. ............. ..... -30-

RESPONSE FROM MANAGEMENT AT USE............................................................................................................... -30-

RESPONSE FROM PERSONNEL OF LISTED COMPANIES. ..................................................................... -32-

RESPONSE FROM MEMBERS OF THE PUBLIC ........................................................................................................ .

-35-

RESPONSE FROM SHAREHOLDERS ................................................... .......... :.. .. . . .. .. . .. . . .. .. .. .. .. .. . -36-

RESPONSE FROM NON SHAREHOLDERS................................. ........................................... ............ -36-

CONCLUSION.................................. ................................. ....................... ........... ..... .......... ............ ... ......... -36-

CHAPTER FIVE........................................................................................................................................ -38-

SUMMARY, CONCLUSION AND RECOMMENDATION......................................................................... -38-

INTRODUCTION............................................... ......................................... .......... ..................... .. ........ -38-

SUMMARY....................................................................................................................... ................... -38-

Accounting standards.................................................................................................... ......... ...... .... -38-

/ntegrity........................................... ............... ..... . . . .. .. ... .. . .. .. . ... . . .. .. . .. . . . .. .. . . . .. . . . .. . . . .. . .. .. . .. . . . . .... . . .. . . ..... -3 9-

lack of awareness........................... ........................................ . ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... .. . ... ... ... -39-

Recommendation................ ... .... . . . .. .. ... .. .. . . . . .... .. . . . .. ..... . .... .... . . . . . ... . . .. . . . .. . . . . . . . . . . . . . . . . . . . .. . . . . . . .. . . . . . . .... .. . . ... . -3 9-

Actively encouraging shareholding............................................................... .......... ............... ................ -40-

Sensitization campaigns....................... ........................................... .................................. ....... ... ....... .. -4 /-

CONCLUSION........................... ........... .. ...................................... ... ......... ......................... -41 -

REFERENCES....................................................................................................................... -42-