Corporate governance practices and the performance of State Universities in Zimbabwe

Abstract

The purpose of this study was to assess the relationship between corporate governance and the performance of state universities in Zimbabwe. The research objectives were: To establish the effect of accountability on the performance of state universities in Zimbabwe, to examine the effect of transparency on the performance of state universities in Zimbabwe, to assess the effect of responsibility on the performance of state universities in Zimbabwe, to evaluate the effect of independence on the performance of state universities in Zimbabwe and to examine the effect of corporate reporting on the performance of state universities in Zimbabwe. A mixed-method research approach utilising a cross sectional survey design was used to collect data using self - structured self-completing questionnaires and interview guides. The study’s target population was 2080 Zimbabwean state universities workers. A sample size of 274 workers was arrived at using Krejcie and Morgan (1970) formula and confirmed by the Rao Soft Sample size calculator. Cronbach’s Alpha, Bartlest’s Test of Sphericity and Keiser Meyer Olkin Measure of Sampling Adequacy (KMO) confirmed the reliability, adequacy, relationships, accuracy and meaning of quantitative data. The Statistical Package for Social Science (IBM SPSS version 20), AMOS version 21 and NVivo version 12 software packages were used for data analysis. The study showed that accountability practice and transparency also exhibit a significant positive correlation with internal control practice which intersperse their status in the performance of state universities. Accountability .academic autonomy and board independence needs to be outstretched in state universities to augment the performance of the universities. Profoundly, state university performance was moderate, as reflected by a mean score average score. Respondents across universities held differing views on the internal control practice with some reporting limited extent. The results showed that corporate governance was somewhat practised in Zimbabwean State Universities. These findings make a novel contribution to the current body of knowledge. The study recommended university management to develop clear policies and procedures, implement well-defined policies and procedures covering areas such as risk management, conflict of interest, whistleblowing, and executive compensation. This would warrant effective risk management and pinpoint, assess, and manage the company's key risks, including financial, operational, strategic, and reputational risks. Therefore, Universities are recommended to prioritise improving service quality through reducing enrolment statistics to improve performance. The study recommends that further investigations to be done on the role of accountability on performance of public universities and on effectiveness of internal controls on performance of selected private universities.