IMPACT OF CORPORATE GOVERNANCE PRACTICES ON FINANCIAL PERFORMANCE OF MANUFACTURING COMPANIES IN RWANDA. CASE STUDY OF BRALIRWA PLC. 2021-2023

Abstract

This study investigates the impact of corporate governance practices on the financial performance of Bralirwa Plc, a leading beverage company in Rwanda. Its objective is to evaluate how effective governance influences key financial indicators, such as profitability and return on equity. Rwanda, known for its remarkable economic transformation in recent years, presents a vibrant landscape for companies operating across diverse sectors. This abstract delves into the dynamics of these companies, shedding light on their contributions to the Rwandan economy, the challenges they encounter, and the opportunities they pursue. The objectives of this research include evaluating the current corporate governance practices at Bralirwa Plc, assessing their influence on financial performance indicators such as profitability, liquidity, and return on equity, and identifying potential areas for improvement. A descriptive research design was employed, utilizing both qualitative and quantitative methods to gather comprehensive data. The research approach combined surveys, interviews, and financial analysis to provide a holistic view of the impact of corporate governance. The target population consisted of senior management and board members at Bralirwa Plc, alongside a selection of employees from various departments. A sample size of 46 participants was determined using purposive sampling to ensure that the insights gathered were relevant and representative of the organization's governance dynamics. The findings demonstrate a strong positive relationship between effective corporate governance practices and the financial performance of Bralirwa Plc. The study highlights that transparency, accountability, and stakeholder engagement play vital roles in boosting profitability and building investor confidence. Additionally, while the company has implemented solid governance frameworks, there are areas for improvement, particularly in risk management and compliance, which could enhance financial results even further. The study concludes that strong corporate governance practices have a significant positive impact on the financial performance of Bralirwa Plc. Key factors such as transparency, accountability, and effective stakeholder engagement are essential for enhancing profitability and overall financial metrics.