Department of Commerce and Business Management.

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An Empirical Analysis of Sovereign Credit Risk Co-movement between Japan and ASEAN Countries
(Journal of Economics and Behavioral Studies, 2016) Jitmaneeroj, Boonlert; Ogwang, John
Japan is the most developed economy in Asia. However, it has been on record for being the most heavily indebted country among OECD countries. In many circumstances, the high sovereign debt level indicates a high possibility of sovereign credit risks associated with investment in government bond. The high sovereign credit risk may also generate a number of negative externalities for private businesses operating in the host country. This paper investigates whether sovereign credit risk of Japan as measured by its sovereign credit default swap (SCDS) can better predict and commove with sovereign credit risk of selected ASEAN countries. The bivariate VAR model was used to test for Granger Causalities among these countries SCDS premiums and correlation analysis to investigate co-movements between SCDS of these countries. The results indicate that Japan’s sovereign credit risks do not co-move with those of ASEAN countries, Furthermore, Sovereign credit risks of ASEAN countries tend to lead those of Japan as evidenced by unidirectional causalities from these countries to Japan. The overall suggestion is that sovereign credit risk of Japan is not likely to influence those of ASEAN. The paper concludes with some implications for businesses.
Functional Adult Literacy: An Alternative Gateway to Grassroots Women’s Improved Income Generation in Lango Subregion, Northern Uganda
(Sage, 2017) Akello, Judith Abal; Lutwama-Rukundo, Evelyn; Musiimenta, Peace
This article presents findings of study on women’s experiences of Functional Adult Literacy (FAL) as a gateway to their financial progress and welfare in Lango region, Northern Uganda. The qualitative study of 45 participants aimed at examining women’s live changes resulting from using their acquired FAL knowledge and skills to participate in Income Generating Activities. The study demonstrates that FAL brings out women’s individual and collective agency through “conscientization” concept and dialogue as tools for marginalized people in the act of social and economic change agents. This argument is grounded within agency concept that portray the power of the oppressed individual as well as collective agency. Findings revealed that FAL training improves women’s livelihood. The article concludes that Government, international development partners, NGOs, and civil society should ensure strong support and implementation of FAL program because it can help women succeed in the contemporary world.
Women Beneficiaries of Functional Adult Literacy Speak Out: Opportortunies and Challenges for Socio-Economic Development in Apach District, Northern Uganda
(Joural of Humanities and Social Sciences, 2017) Akello, Judith Abal; Musiimenta, Peace; Luwama-Rukundo, Evelyn
Women’s literacy is critical to addressing gender inequality, though, globally, only 88 adult women are considered literate for every 100 adult men. This article is an analysis of challenges faced by Ugandan women based in the Northern part of the country who attempt to acquire and use skills attained from training in Functional Adult Literacy (FAL) to improve their socio-economic conditions. Qualitative data was collected from 45 participants (literate and non-literate) selected purposively. The study was informed by Freire’s literacy and agency theories which argues on the element of awareness by making marginalised non-literates see the reality of the world by using their agency to recognise their impediment to development. Findings indicate that women FAL graduates faced challenges ranging from lack of acknowledgement, belittlement to negative perceptions. It would be helpful for Government, International development partners, NGO’s and civil society to ensure strong support and inclusive planning with FAL trainees to enable them not only to benefit from their training but also to contribute to achievement of sustainable development.
Effect of Mandatory Disclosure of IAS/IFRS on Earnings Management Among Listed Firms At The Uganda Securities Exchange
(International Journal of Economics, Commerce and Management, 2019) Etengu, Robert O.; Olweny, Tobias O.; Oluoch, Josephat O.
Prior research provides conflicting results on whether mandatory adoption IAS/IFRS deters or contributes to greater earnings management. On this basis, this study sought to examine the effect of mandatory disclosure of IAS/IFRS on earnings management among listed firms at the Uganda Securities Exchange. First and in accordance with prior empirical disclosure research, mandatory disclosure of IAS/IFRS is examined using a disclosure index. Secondly, earnings management represented by the absolute value of discretionary accruals is measured using the modified Jones model. Thirdly, robust regression is used to examine the effect of mandatory disclosure of IAS/IFRS on earnings management for a census of 9 non-financial companies for the period 2012 to 2017. We find an increase in earnings management following the 2005 mandatory adoption of IAS/IFRS among listed firms at the Uganda Securities Exchange. One important implication of this study is that studying several IFRS enables the accounting standard setters to identify standards that have a significant influence on financial reporting quality and those that need to be revised as they offer the opportunity to manage earnings and allow managers to opportunistically exercise the allowed reporting latitude. Secondly, the mandatory disclosure index used in this study might act as a benchmark for regulators for purposes of future analysis and evaluation. Despite the evidence documented in this study, the population of listed non-financial firms used in this study is small. Consequently this limited the number of firm year observations available over the six year period
Corporate and Strategic Information Disclosure and Earnings Management: Evidence from Listed Firms at the Uganda Securities Exchange
(Journal of Finance and Economics, 2019) Etengu, Robert O.; Olweny, Tobias O.; Oluoch, Josephat O.
The purpose of this study is to examine the effect of corporate and strategic information disclosure on earnings management among listed firms at the Uganda Securities Exchange. We conduct our survey on a census of 9 non-financial listed firms spanning a period of 6 years (2012-2017). The study uses the magnitude of discretionary accruals obtained from the De Chow, Sloan and Sweeney (1995) model as a proxy for earnings management. The study’s results show a negative and significant effect of corporate and strategic information disclosure on earnings management. The implication of this finding is that information disclosure related to corporate and strategic information constitutes a constraint to the proliferation of earnings management. The study could benefit regulatory bodies that are considering making disclosure regimes effective. For instance, we find that the disclosure of corporate and strategic information drives EM downwards. In addition, the results of this study might assist regulators and policy makers in understanding better the interconnections between corporate and strategic information disclosure and earnings management practices in Uganda. This study, however, has some limitations. First, because the study uses a self-constructed disclosure index, certain information items employed in prior studies might be omitted. Second, whereas hand collecting the necessary data on corporate and strategic information from the narrative section of the annual reports allows for a data set containing rich information, the exercise is costly and time-consuming.
Effect of Corporate Disclosure on Earnings Management Among Listed Firms At The Uganda Securities Exchange: A Critical Evaluation and Literature Survey
(European Journal of Accounting, Auditing and Finance Research, 2019) Etengu, Robert Oguti; Olweny, Tobias O.; Oluoch, Josephat O.
The primary purpose of this paper is to critically examine literature on the effect of corporate disclosure on earnings management among listed firms at the Uganda Securities Exchange. We discuss some background information on the interlinkages between corporate disclosure and earnings management. We also explore some of the theories available in literature on corporate disclosure and earnings management. In addition, we critically review extant literature on corporate disclosure and earnings management, highlight the research gaps, provide a justification for novelty of the paper and draw a conclusion. The paper is also expected to make a significant contribution to knowledge by shedding light on the effect of CD on EM, particularly in the context of a developing country.
Financial inclusion: Is it a precursor to agricultural commercialization amongst smallholder farmers in Uganda? A comparative analysis between Lango and Buganda sub-regions
(Journal of Economics and International Finance, 2020) Eton, Marus; Mwosi, Fabian; Ejang, Mary; Poro, Sammy Godfrey
This study examines the contributions of financial inclusion in supporting agricultural commercialization amongst smallholder farmers in Uganda in Lango and Buganda sub-regions. The researcher adopted a comparative study and cross-sectional survey design where descriptive, bivariate and multivariate data analysis was used. Chi square procedure was run to test the hypothesis that financial inclusion does not affect agricultural commercialization amongst smallholder farmers in Lango and Buganda sub-regions. Regression analysis was specifically used to predict the level of change in agricultural commercialization due to changes in financial inclusion. The study identified financial inclusion as one variable that can predict the success of agricultural commercialization, though it varies from one region to another. In Lango, efforts by government to increase financial access is a positive factor to agricultural commercialization while in Buganda, it is a negative factor. In Lango, land is communal and not individually owned. Therefore, smallholder farmers need to access finances to purchase land for commercial farming. In Buganda, however, land is freehold, which makes smallholder farmers to own chunks of land from their parents. The study has established some common factors that limit agricultural commercialization in both Lango and Buganda, that is, expensive equipment and fluctuating prices while poor infrastructure is no longer a big worry. This paper recommends that, financial service providers should revise their lending terms downwards to reach smallholder farmers, some of whom lack collateral security to pledge for credit. While the government takes credit for improving infrastructure, government, through her policy organs like ministry of agriculture, should provide buffer prices against price fluctuations.
Some Non-Linear Problems in Accounting and Finance: Can We Apply Regression?
(International Journal of Business, Economics and Management, 2020) Ogwang, John
Recent studies have indicated that many decision problems in accounting and finance can be better modeled by non-linear models in practice. However, existing literatures have also shown that managers and decision makers are not very conversant with non-linear models as compared to linear models because of the simplicity of linear models. In this paper, attempts are made to transform some non-linear models in accounting and finance which conform to exponential and power functions to their equivalent linear forms. The resulting equivalent linear models are subjected to regression analysis. The paper documents interesting practical non-linear problems in accounting and finance where it is possible to apply regression, and provides technical interpretations of coefficients of resulting regression equations. Some non-linear problems which have been documented in this analysis include; depreciation of non-current assets, the learning curve model, life cycle costing, compounding, discounting and exponential growth bias. Although logarithmic transformation of non- linear functions is not a novel idea in literature of accounting and finance, there is no evidence in literature that scholars have proposed particular cases in finance and accounting where these linear transformations and their resulting regression equations would yield meaningful results that can enhance management decision making. This paper fills this gap by documenting practical non-linear problems in finance and accounting where linearization and subsequent application of regression analysis generates useful results for management decision making purposes.
Professor’s Optimal Workload Problem and His Remunerations: A General Solution from Lagrangian Function
(International Journal of Business, Humanities and Technology, 2020) Ogwang, John
The author proposed a general solution to professor’s optimal workload by using Lagrange method. University Management is treated as a utility maximizer, whose objective is to efficiently utilize professor’s teaching hours and research output to the maximum level. The paper used the Cob-Douglas utility function for this utility maximization problem. The data used for this analysis were obtained from policy documents of Lira University and Makerere University in Uganda. The model generated varying maximum levels of teaching loads and research output for different categories of academic staff and faculties (Science and Non-science faculties). Generally, workload increases in both dimensions of teaching and research, as remuneration increases when one is promoted from a lower position, say a senior lecturer, to higher position, say Associate professor. The model also generated higher workload both in teaching and research for the Faculty (Sciences) whose academic staff are better paid compared to staff in the non-science Faculty who are paid lower remunerations. The paper contributes to existing literature on Faculty workload model in two ways: Firstly, is the design of differential maximum workload system for different categories of Academic Staff depending on the level of their remunerations and seniority. Secondly, the decomposition of Academic staff’s maximum workload into its teaching and research components for any given fixed amount of remuneration. The paper concludes by suggesting appropriate policy implications.
Voluntary Disclosure of Financial and Capital Market Data and Earnings Management: Empirical Evidence from Uganda
(Journal of Finance and Investment Analysis, 2020) Etengu, Robert O.; Olweny, Tobias O.; Oluoch, Josephat O.
This paper examines the effect of voluntary disclosure of financial and capital market data on earnings management among listed firms at the Uganda Securities Exchange. The paper is premised on the idea that the provision of voluntary disclosure of financial and capital market data contributes to the reduction of information asymmetry and that lower information asymmetry makes it more difficult for managers to engage in earnings management practices. We proxy earnings management following the modified Jones model (Dechow, Sloan, & Sweeney, 1995) and use annual reports of 9 listed non-financial firms at the Uganda Securities Exchange for the period 2012 to 2017. Applying robust regression analysis, we find that voluntary disclosure of financial and capital market data is positively and insignificantly related to earnings management. This suggests that the disclosure of financial and capital market data in the annual reports of listed firms at the Uganda Securities Exchange doesn’t necessarily reduce the incentives for managers to engage in earnings management through discretionary accruals.
Supply Chain Management Practices and Performance of Small and Medium Sized Enterprises in Uganda, A Case of Manufacturing Enterprises in Lira City
(Lira University, 2021) Obote, Fred; Kumakech, Edward; Ocheng, Peter Opio
Background: The study was conducted to examine the effect of supply chain management on the performance of SMMEs in Lira City. Specifically, the study explored the effect of delivery time on SMMEs performance, determined the effect of quality management on the performance of SMMEs in Lira City and examined the effect of information sharing on the performance of SMMEs in Lira City. Methods: The study used the cross-sectional design to collect and analyze both quantitative and qualitative data from owners and managers of SMMEs in Lira City; the sample size of the study population was 113 and was sampled using simple random sampling and purposive sampling techniques. Questionnaires and interview methods were used to collect data while mean and standard deviation were used to measure the performance of the construct in Lira City. Findings: Correlation coefficient was used to test the strength and the direction of the relationship between supply chain management practices and performance of SMMEs and the results revealed that supply chain management practices are positively correlated to SMMEs performance. Also, the findings of the study revealed a positive significant effect of delivery time on the performance of small and medium sized manufacturing enterprises in Lira City (coef. 0.408, p <0.01). Secondly, the results on the effect of quality management on the performance of small and medium sized manufacturing enterprises in Lira City further revealed a positive significant effect (coef. 0.631, p < 0.01). Thirdly, the effect of the information sharing on the performance of small and medium-sized enterprises in lira city was found to be positive and insignificant effect (coef. 0.137, p >0.01). finally, the results of multiple linear regressions yielded an adjusted R square value of 0.362, which meant that supply chain management practices contribute about 36.2% to the performance of small and medium sized manufacturing enterprises in Lira City. Recommendations: Based on the above findings, the study recommends that owners and managers of SMMEs should put more emphasis on quality management and the timely delivery of inventory to improve on the performance of their firms.
Financial Planning and Household Investments Among Primary School Teachers in Lira Central Division
(Lira University, 2021) Akeny, Emmanuel; Mwesigwa, David
The UNHS (2017) showed that Uganda households spends (96%) on consumption of goods and services. A massive (92%) of household that receive their post-retirement benefits spends it all in consumption and uniformed investments within a year and remain broke with no cash and assets to fall on yet (80%) of the beneficiaries have only NSSF as their post-retirement source of financial income. This ,after spending all of their working life on a paid employment and receiving a monthly income for that service .The study sought to investigate the effects of financial planning on household investments among primary school teachers in Lira Central Division . The study was guided by three objectives, namely ;1) To determine the effects of personal cash flow on household investment; 2) to examine the effects of personal dept management on household investments; and 3) to determine the effects of personal savings on household investments. The study adapted a cross-sectional survey design with purely quantitative research approach. The study population constituted 165 primary school teachers, who are paid from government ‘s consolidated fund, and sample of 118 primary school teachers. The study used questionnaire collect primary data while mean, standard deviation, correlations and regression were helpful in analyzing quantitative data. The findings indicate statistically insignificant effects of cash flow, dept management and personal saving on household investments in Lira Municipal Council. The study therefore recommends that primary school teachers should be exposed to financial education so that they can appreciate the significance of developing and using a financial plan to help them to achieve desired household investments which can continue to generate more income, supplementing the salary which is main source of income. In consideration of the fact that most primary school teachers have high operational expenses some of which are facilitated by credit, it is important that they prioritize short term fiscal discipline in order to guarantee a future of financial freedom fed by streams of investment income from household investment
Competitive Strategies and Performance of Small and Medium-Sized Enterprises in Lira City of Northern Uganda
(Lira University, 2021) Otim, Joe Dalton; Jehopio, Peter Jegrace; Kuka, Phinenous
The study sought to find out the significance of competitive strategies on performance of small and medium-sized enterprises (SEMs), particularly in Lira City of Northern Uganda. Specifically, the study focuses on the influence of the market focus on the performance of SMEs, the effect of cost leadership on the performance of SNEs and the significance of product differentiation on performance of SMEs. According to Porter (2000) higher performance would be attained in an industry that is filled with competition through pursuing strategies which include being a leader in term of low cost, strategy for differentiating product and services and strategy on focusing at a particular market segment. A theoretical model was induced using competitive strategy paradigm of literature. It consisted of market focus strategies, differentiation strategies, cost leadership strategies and performance dimension. Cross-sectional design with quantitative method of investigation was moved to fulfill the objectives of the study. A 5-point Likert scale questionnaire was used to measure responses of 390 business respondents in Lira City. Three hypotheses were posted to explore the effects of competitive strategies on performance of SMEs. The study was structural equation Modeling (SME) for analysis. The result indicated that cost leadership strategies positively and significantly influence performance of SMEs in Lira City. Recommendations arising from the study are that SMEs should adopt competitive strategies particularly cost leadership strategies, as it shown to enhance productivity leading to better performance. This finding is in agreement with Porter (2000) who argued that higher performance would be attained if affirm is a leader in term of low cost. In conclusion, cost leadership has a significant influence on performance of SMEs while product differentiation and market focus have no significant influence on financial performance of SMEs.
Reward System and Performance of Employees in Dokolo District Local Government
(Lira University, 2021) Odiambo, David; Hasahya, Nathan Hagobi; Ojuka, Edward
Background: The purpose of this study was to examine the effect of reward systems on employee performance in Dokolo District Local Government. Specifically, the study sought to: determine the effect of promotion on employee performance, establish the effect of giving awards on employee performance and examine the effect of emolument on employee performance in Dokolo District Local Government. Methods: The study employed a cross sectional research design; employed both quantitative and qualitative approaches from a sample size of 94 respondents that was drawn using the Krejcie & Morgan (1970) method. The study used a questionnaire and an interview guide as research techniques to collect quantitative and qualitative data from primary and secondary sources. Reliability and validity tests were determined using KMO, Barllet’s test of sphericity and Cronbach’s Alpha to ensure quality control. Quantitative data analysis was done using SPSS package version 23 where univariate and multivariate analysis was carried out while thematic and content analysis was employed to analyze qualitative data. Findings: The study revealed that promotion and emolument was positively associated with employee performance while giving awards had a low impact (Mean=2.419). on the level of employee performance, the study revealed that employees’ performance in attendance (mean-4.11) and timely reporting (mean=3.45) was high while service delivery (mean=2.31) and accountability (mean=2.19) registered low level of performance. On the effect of reward systems, the findings of the study revealed a positive significant effect of promotion (coef. 0.360, p<0.05), giving award (coef. 0.302, p<0.05) and emolument (coef. 0.314, p<0.05) on employee performance in Dokolo District Local Government. Finally, the results of multiple linear regression yielded an adjusted R square value of 0.557, which implied that jointly, rewards system (promotion, emoluments) contributed about 55.7% variation in employee performance in Dokolo District Local Government. Conclusions: Based on the above findings, the study concluded that promotion, emolument and giving awards are very instrumental in improving employee performance in Dokolo District Local Government (contradiction: you said giving awards was not). Recommendations: The study therefore recommended that Dokolo District Local Government should use promotion, giving awards and emolument to improve employee performance since the study has found out that they all improve performance.
Procurement Process Management and Contract Performance. Case Study: Kotido District Local Government
(Lira University, 2021) Ojuk, Denis; Opio, Peter Ocheng; Kumakech, Edward
The main objective of the study was to determine the effect of procurement process Management on the contract’s performance in building construction work, Kotido District Local Government. The study was conducted on procurement process Management to examine the effects of Procurement Planning Supplier Selection process and Contract management on Contract Performance. Cross Sectional research survey design was used in executing the study. The targeted group of the study was: Heads of Department, Evaluation Committee, Political and Technical Staff, Constructors, primary school headteachers and In-charges health facilities as the beneficiaries of the service. These were the entire group of interest for the study population of 150 of which, a sample size of 109 was selected for the study that formed part of research respondents. Accordingly, purposive and simple random sampling was used to reach the respondents. Quotatives data were collected using self-administered questionnaire, and qualitative data were collected using interviewer-administered interview guide. Bi-viriate analysis was done to establish the correlation between variables. Finding showed that, there was a positive correlation (rho = .360) between supply selection management and contract performance and a strong positive correlation (rho = .515) between contract management and contract performance. Multi-viriate/regression analysis was used to examine a significant relationship between procurement process management and contracts performance. ANOVA/Regression mode of contract was found to be significant at (F = 7.085, p<.01). Therefore, it was a significant positive correlation between procurement planning, Supplier Selection process Management and Contract management with Adjusted R being 17.2%. Implying that, the overall model was significant. Conclusion, Procurement Planning, Supplier Selection Process management and Contract management was crucial in contract performance due to their significant effects and relationship on contracts management in Kotido District Local Government. Recommendations: continuous training of human resources in procurement management, strict adherence to code of conduct in the procurement practice, requirements regarding personnel and equipment be included earlier in standard bid document to avoid conflict of interest during supplier selection, emphasis on monitoring supervisory works to identify causes of shoddy works at an early stage and lastly, policy implementation, performance and quality assurance team be instituted for purposes of feedback on procurement process management on contract performance.
Internal control system and health service delivery in district local governments of Lango sub region in northern Uganda: A case of lira district local government
(Lira University, 2021) Bua, Lydia; Hagobi, Nathan Hasahya; Oguti, Robert Etengu
Background: The purpose of this study was to empirically document the effect of internal control system on health service delivery in Uganda using Lira District Local Government as a case study. Precisely, the study established the effect of control environment on health service delivery in Lira District Local Government, assessed the effect of risk assessment on health service delivery in Lira District Government, and examined THE effect of control activities on health service delivery in Lira District Local Government. Methods: The study adopted a cross-sectional survey design which made use of primary data sourced suing a self-administered questionnaire. Data was collected from a sample of 90 respondents extracted from a sample size of 130 using a self-administered questionnaire. The researcher used purposive and simple random sampling to select the respondents. The data was analysed in terms of descriptive statistics, correlations and regressions. Findings: The findings of the study revealed a significant relationship between control environment and health service delivery (an adjusted R2 value of about 20% with a p-value <0.05 at the 95% significance level). Secondly, the effect of risk assessment on health service delivery produces an adjusted R2 OF ABOUT 20%. In addition, the result from the ANOVA table exhibited a significant linear relationship [F (1, 88) = 10.654, p < 0.05] which meant that the relationship was significant. Thirdly, the results on effect of control activities on health service delivery produced an adjusted R2 of about 29% and further revealed that the relationship was significant (p <0.05). Conclusion: In conclusion, control environment significant affects health service delivery, assessment of risk performed in Lira District Local Government enhanced quality of health service delivered in the district and control activities significantly affect health service delivery in Lira District Local Government. Recommendations: The study recommended that there is need to improve the current control environment aimed at improving health service delivery, management of lira district local government should also start thinking in terms of incorporating information technology (IT) in their risk assessment processes so as to enable accurate risk assessment and finally, the researcher also recommends a through review of the existing controls with the aimed of strengthening then though policy implementation because their apparent contribution towards health service delivery is based on the results of the multivariate analysis is relatively low compared to the results from prior studies. Keywords: Internal control system, health service delivery
Functional Adult Literacy: The Influence on Women’s Improved Health Promotion Behaviours in Apac District, Northern-Uganda
(Research on Humanities and Social Sciences, 2021) Akello, Judith Abal; Musiimenta, Peace
This article is about women’s experiences of Functional Adult Literacy (FAL) as a means to their improved Health Promotion Behaviours in Apac District, Northern Uganda. The qualitative study of 29 participants aimed at examining women’s improved well-being resulting from using their acquired FAL knowledge and skills to participate in health promotion behaviours. The study was informed by Kabeer’s agency theory and Freire’s literacy perspective which argue on the element of conscientisation or awareness by making marginalised nonliterate’s agents of promoting health behaviours. The findings revealed that from the practical skills, the women experienced more confidence, increased awareness and understanding on health-related issues and improved well-being. Therefore, the study recommends that the Ministry of Gender, Labour and Social Development (MoGLSD), International Donors, Non-Governmental Organisations (NGOs) and Civil Society should ensure prioritisation, support and implementation of FAL training.
Family Business Management and Business Performance in Lira City-Northern Uganda
(Lira University, 2021) Ogweng, Lawrence; Ejang, Mary; Acanga, Alfred;
Background: This study examined the relationship between family business management and the performance of family businesses in Lira City. The study objectives were; to analyze the influence of goal setting and visioning on family business performance in Lira City, to assess the influence of governance structure on family business performance in Lira City, to analyze the influence of professional management on family business performance in Lira City and to examine the role of management control systems in business performance in Lira City. There was evidence from literature that family businesses in Uganda and therefore Lira City are characterized by low profits, low share in the market and low productivity, leading to high rate of failure at over 26% annually. Methods: A cross sectional design based on a mixed method was used. The study used stratified and simple random sampling to sample 123 out of 135 family businesses and the response rate was 96 percent. Data was collected using questionnaires and interview guide. Statistical package for social sciences (SPSS) version 23 was used for data analysis. Descriptive statistics, correlation and linear regression models were used to assess the role of family business management on performance. Findings: The regression results indicated that: goal setting and visioning and management control systems had a positive and significant influence on performance of family business, governance structure had a significant negative influence on family business performance and professional management did not have a significant influence on family business performance. Conclusion: The study concluded that there is a significant relationship between family business management and business performance in Lira city. Recommendations: the study recommends that; policy makers should provide for capacity building of family business managers on management control systems as an aspect of family business internal characteristic that improves performance, policy makers should come out with guiding principles and strategies to ensure that all family businesses have well documented goals and visions, business owners should refine the clan and social structures that have been ident
Lending “Terms, Conditions” and Financial Performance of Small Medium Enterprises in Lira Municipality
(Lira University, 2021) Ojok, Jolly Joe; Ojuka, Edward; Apio, Sarah Okite
Background: The study sought to establish the effect of lending terms and conditions on the financial performance of small and medium sized enterprises (SMEs) in Lira Municipality. The specific objectives were to ascertain SME’s perception of lending terms and conditions offered by financial institutions; determine the effect of lending terms and conditions on the key financial performance of SMEs and to assess the level of financial performance of SMEs in Lira Municipality. Methods: The study adopted a cross-sectional research design. Purposive and simple random sampling procedures were used to select the respondents. The study considered a sample of 198 respondents which included managers and accountants that represented selected SMEs. Scientific package for social scientists (SPSS v 23) was used for data analysis. Findings: The findings indicated that SMEs have a negative perception towards lending terms and conditions, borrowing cost, collateral, and loan duration predicted approximately 56.5%, 35%, and 8.5% respectively. Collectively, these measures of lending terms accounted for 60.7% variations in financial performance. While collateral and borrowing costs were significant predictors of the financial performance of SMEs in Lira Municipality, loan duration was not. Conclusions: The study has significance because it can aid policy-makers in the formulation of policies, which can be effectively implemented for better and easier regulation of SMEs. Further, ROA was revealed as a better indicator of financial performance than ROE and profitability
Internal Control System and Financial Performance of Small and Medium Enterprises in Lira City
(Lira University, 2021) Odyek, Evelyn Ruth; Etengu, Robert Oguti
This study sought to examine the effect of internal control system on the financial performance of small and medium enterprise in Lira City. Much as Uganda is renowned internationally for its entrepreneurial flair and is ranked as one of the most entrepreneurial nations not only in Africa, but in the world (GEM Report,2004), it is puzzling to note that there is remarkably high failure rate of SMEs in Uganda and hence suggesting these enterprises rarely grow to their full potential (Hatega, 2007); The specific objective of the study was to examine the effect of control environment, risk assessment and control activities on the financial performance of small and medium enterprise in Lira City. The study employed cross-sectional survey research design. The target population for this study comprised 100 managers and owners of small and medium enterprises in the service sector in Lira City. A comprehensive self-administered questionnaire was used to collect primary dat. This was supplemented with the use of interview guide. The quantitative data collected using the questionnaire was coded to facilitate analysis using Statistical Package for Social Scientists (SPSS) Version 23 in form of descriptive and inferential statistics. Descriptive statistics involved the use of frequencies, means, standard deviations and coefficient of variation. Inferential statistics involved the use of both correlation and regression analysis. The findings of the study revealed a significant effect of control environment (β =0.717, p < 0.05), risk assessment (β = 0.559, p < 0.05), and the control activities (β =0.756, p < 0.05) on the financial performance of small and medium enterprises in Lira City. The study is insightful in evaluating the effect of internal control system on performance. The study recommends for the strengthening of the risk assessment processes in small and medium enterprises in Lira City given the role it plays in highlighting firm-level inherent and control risks that amount to material misstatement in financial statements.

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