Abstract:
Most studies have come up with unpredictable findings in relation to research about corporate governance and performance which don’t fully resolve the issue of whether a Bank of Kigali plc corporate governance leads to improvements in Bank of Kigali plc’ financial performance. Hence, this left the researcher willing to find out whether corporate governance affects the financial performance of Bank of Kigali plc in Rwanda, with reference to Bank of Kigali plc. The study was built on both general and specific objectives. The general objective of this study was to apprehend the impact of corporate governance in the financial performance of Bank of Kigali plc in Rwanda whereas the specific objectives were; to assess the level of corporate governance practices in Bank of Kigali plc, to analyze the effectiveness of corporate governance adopted by bank of Kigali plc, and to investigate the contribution of corporate governance practices on performance of bk plc. In order to reach the achievement of the above objectives, a combination of questionnaires, interviews, documentary reviews and analyzing financial and other reports were used. Distribution of questionnaires was done to a group of 50 respondents who included the staffs of Bank of Kigali plc, Universal sampling technique was applied in the study. Findings revealed that corporate governance practices are well supported under specific activities that are tackled both tactically and strategically which according to the findings led to better financial performance and this was represented by a mean of 4.9. Bank of Kigali plcs ROA was seen raising as a result of emphasizing corporate governance in the BANK OF KIGALI PLC. From correlation analysis, the p value was found to be 0.005 which explains that there was a strong, positive monotonic correlation between corporate governance and financial performance hence, a positive impact on the financial performance of Bank of Kigali plc in Rwanda. Concerning environmental scanning, this Bank of Kigali plc top management should always identify strategic factors that benefit the BANK OF KIGALI PLC in towards it financial performance and this will help to combat a tendency of dependence on the top management hence effective corporate governance. As a way of having better corporate strategies in the institution, all staffs are recommended to always respect the top management’s recommendations and advice to all the staff. More so, the entire staff should always have an idea about what the top management has put in place.
