Authors : Louis Roy Byaruhanga; Bulan Prabawani; Dr. Andi Wijayanto

Volume/Issue : Volume 8 - 2023, Issue 6 - June

Google Scholar : http://tinyurl.com/5cx74zpb

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DOI : https://doi.org/10.5281/zenodo.10638083

Abstract : The aim of this research study is to examine the influence of corporate directorship on firm’s performance on listed firms of the Uganda Securities Exchange. For this purpose, this study performed fixed and random effect econometric estimation models and used the data for the time period from 2017 to 2021. The study results indicate that between the two econometric estimation models, Hausman specification test recommended the estimation of the random effects model. According to the random effect model result corporate directorship significantly affects the listed firm’s performance. The study specifically focused on the influence of directors’ payment, proportion of non-executive directors, board size, CEO age, and CEO tenure on firm performance with the controlling variables of firm size and age. The study explored the influence of the corporate directorship on firms’ performance on listed firms on the Uganda Securities Exchange and contributed to the existing literature on investments in the Ugandan setting. Overall, corporate directorship variables included in the model, improved the performance of firms listed on USE by 11.2%. The study recommends that more corporate directorship variables should be studied to generate generalizable results.

Keywords : Uganda Securities Exchange (USE), Corporate Directorship, Listed Companies, And Firm Performance.