Abstract:
This study examined the feasibility of
implementing the Public Entity Corporate Governance
Act's (PECGA) best practices to enhance good
performance at a State Owned Entity (SOE). Boards of
State enterprises and parastatals (SEPs) had encountered
impediments in promoting corporate governance best
practices in Africa. Identified factors hindering the
implementation of PECGA of 2018 were examined to
proffer recommendation for its adoption. Zimbabwe came
up with the PECGA of 2018. The feasibility of
implementing PECGA's best practices to enhance good
performance at the SOE is not well known when this study
was conducted. Mixture research methods were adopted
where questionnaires were used to collect data. Purposive
sampling methods were used to examine the populations of
38 head office managerial staff. Chi-square and regression
analysis were used for analysis. It is found that job title and
education level are related and the execution of sound
PECGA best practices and the SOE's operational
performance are related. The results confirmed that there
were hindrances on the execution of sound PECGA best
practices on the SOE's operational performance. The study
concluded that it is not feasible to fully implement the
PECGA best practices in SEPs to enhance performance in
Zimbabwe. The Zimbabwean's PECGA must be moved
from the "apply or explain" model (that is relying on the
disclosures requirement doctrine as a method of promoting
the execution of definite corporate governance practices
devoid of mandating real practices) to "comply or else"
model of corporate governance to achieve sustainable
corporate governance success in the near future.
