The Impact of Corporate Governance on Financial Performance of Commercial Public Enterprises in the Service Industry: A Case Study of NamPost

Abstract

Poor corporate governance is one of the major problems faced by commercial public enterprises in Namibia. Therefore, this study aims at determining the aspects of corporate governance that impact financial performance of Nampost.

The objective of the study is to evaluate corporate governance at Nampost, determine corporate governance elements that influence financial performance; identify adjustment to be made to improve corporate governance and establishing governance factors that contribute to Nampost’s performance. Information used in the study was collected using self-administered questionnaire, which targeted executive management, senior staff and supervisor at Nampost.

The study used quantitative method to determine the impact of corporate governance. Microsoft excel was used to analyze collected data, while frequency tables and One way Anova was used for testing.  Descriptive statistic was employed to organize and summarize data collected.

The study found that Nampost met most of corporate governance requirements; this has enhanced financial performance of the company.  However, the study found that board size, board composition and existence of EXCO were the most critical aspects. Based on the findings, a number of recommendation were made for consideration by the Nampost Shareholder, Board of Directors and Management with the view of improving and keeping ethical culture of corporate governance.  This study recommends that Nampost must keep a small board size, as long as its diverse and demographic make it more effective.

Table of Contents 

Abstract

Keywords 

Acknowledgements 

Dedication

Declaration

List of Figures

List of Tables

List of Acronyms

Chapter 1: Introduction

1.1 Background of the Study

1.2 Problem Statement 

1.3 Research Objectives 

1.4 Research Questions 

1.5 Significant of the Study

1.6 Limitation of the Study 

1.7 Delimitation of the Study 

1.8 Summary 

Chapter 2: Literature Review 

2.1 Introduction 

2.2 Background of Corporate Governance

2.2.1 The King Report I 

2.2.2 King Report II 

2.2.3 King Report III

2.2.4 King IV Report. 

2.2.5 The Corporate Governance Code of Namibia 

2.3 Scope of Corporate Governance 

2.4 Challenges of Dual Governance Mode

2.5 Benefit of the Hybrid Governance Model

2.6 Elements of Corporate Governance

2.6.1 Board of Directors: Their Role and Functions

2.6.2 Board Size  

2.6.3 CEO Duality 

2.6.4 Board Composition  

2.6.5 Independent Committee

2.6.6 Audit Committee

2.6.7 Executive Committee 

2.6.8 Compliance with Laws, Rules, Codes and Standards

2.7 Hybrid Governance Model 

2.7.1 Challenges of Dual Governance Model 

2.7.2 Benefit of the Hybrid Governance Model 

2.8 Determinants of Financial Performance of Public Enterprises 

2.9 Empirical Review 

2.10 Summary of Literature Review 

Chapter 3: Research Methodology Introduction

3.2 Research Design 

3.3 Population of the Study

3.4 Sample Size and Sampling Procedures 

3.5 Research Instruments 

3.6 Data Collection 

3.7 Data Analysis

3.8 Research Protocol 

3.9 Validity and Reliability

3.10 Summary 

Chapter 4: Data Analysis

4.1 Introduction 

4.2 Data Presentation

4.3 Summary 

Chapter 5: Discussion of Findings, Conclusion and Recommendations 

5.1 Introduction 

5.2 Findings 

5.2.1 Small Board Size 

5.2.2 Size of Non Executive Directors is more than Executive Directors 

5.2.3 Existence of EXCO does not guarantee good performance if the board is weak 

5.3 Nampost Focus Areas

5.4 Summary of Findings

5.5 Conclusion

5.6 Recommendations 

5.7 Area for Further Studies 

References. 

Appendix 

Appendix 1: Questionnaire. 

Appendix 2: One Way Anova Analysis

Appendix 3: Commercial Public Enterprises 

Appendix 4: Permission to conduct a Research