BOARD SIZE AND FINANCIAL PERFORMANCE OF HOUSING FINANCE BANK, UGANDA

Abstract

The study was carried out to establish the relationship between board size and financial performance of
commercial banks in Uganda, with Housing finance bank as a case study. The study was cross-sectional
combined with analytical survey design as well as descriptive methods to interpret the findings. Besides,
both qualitative and quantitative methods were also adopted. A sample of 59 staff of Housing finance
bank were selected. Both census and simple random sampling methods were used to select the respondents
for the study because of their involvement in corporate governance issues within the bank. Semi-structured
self-administered questionnaires and interview guids were employed to collect data. The regression result
showed that about 36% of the variations in financial performance of Housing finance bank is explained 
by corporate board size, board. Thus, the study therefore recommends that Housing finance bank need to
assess board’s ability to monitor management as most members have their own companies to run and have
little or no time to perform a better overseer function. The researcher would recommend to Housing
finance bank manangement to adhere to principles of corporate governance and choose a small board of
directors not above ten in number.