Political interference and corporate performance of public universities in Uganda

Abstract

This study examined the relationship between political interference, corporate governance and corporate
performance in four public universities in Uganda. The study was prompted by institutional turbulences as a
result of political interference in public universities. A cross-sectional and correlational study was conducted
in four public universities in Uganda namely; Makerere, Kyambogo, Gulu and Mbarara. Multiple regression
model was fitted using SPSS to determine the strength of the relationship and prediction of corporate
performance. We offer evidence that political interference in these universities decision-making negatively
affects their corporate performance. Political interference had a significant negative effect on corporate
performance. The findings further revealed that corporate governance variables were significant in this study,
specifically, board size, had a negative effect on corporate performance while policy and decision making had
a significant positive relationship with corporate performance. There is an ongoing need for public
universities to formulate policies and make decisions that can improve the overall operations, systemically;
namely, in the areas of constituting manageable council and senate committees and minimal political
appointees to realize improved corporate performance.