Corporate Financing and Risk Management in the Banking Sector in Uganda During and Post Covid-19. Evidence from Kabale District
The study examined the effects of corporate financing and risk management in the banking sector in East Africa during and Post Covid-19 tapping on evidence from the Kabale district in Uganda. It was guided by specific objectives, the effect of Bonds on risk management in the banking sector during and post COVID-19, the effect of treasury bills on risk management in the banking sector during and post COVID-19, and the effect of debt management on risk management in the banking sector during and post COVID-19. A descriptive research design was adopted in this research. Both primary and secondary data were used in this study. The population of the study was 97 technical staff. Purposive and random sampling techniques were applied in the study. Data was collected from 78 staff of selected commercial banks in the Kabale district using a structured questionnaire. Both correlation and regression analysis were used. The study revealed that the board of directors set strategies on bond issuance and were effectively communicated within the bank in the form of policies and procedures by the top management (M =4.2, SD = 0.34). The findings showed that the bank has set in place principles of short-term crediting (M = 4.6, SD = 0.32). The bank undertakes regular monitoring of the total value of gross daily payments made and received (M = 4.8, SD = 0.18). Involves identification of existing sources of treasury bills as well as treasury bills that may arise from new business products or activities (M = 4.7, SD = 0.30). The average lessons undertaken was (M = 4.3, SD = 0.13). Debt management was also implemented by the banking sector. It was reported that the debt management efforts of the bank were supported by senior Management (M = 4.2, SD = 0.42). It was also revealed that the management efforts of the institution were well communicated to them (M = 4.2, SD = 0.18). There is a need to set up strong structures for the management of corporate financing in order to enhance risk management in the banking sector
Abubakar, M. B., Amuche, P. A., & Mohammed, Y. I. (2021). Operational Risk and Performance of Listed Deposit Money Banks in Nigeria: The Moderating Effect of Bank Size. Lapai Journal of Economics, 5(1), 1–11.
Ahamed, F. (2021). Determinants of liquidity risk in the commercial banks in Bangladesh. European Journal of Business and Management Research, 6(1), 164–169.
Akena, F. A., Romm, N. R. A., & Ocan, J. (n.d.). Chapter Sixteen Economic Development for holistic wellbeing in the (post) COVID-19 Era.
Akong’a, C. J. (2014). The effect of financial risk management on the financial performance of commercial banks in Kenya.
Al Barrak, T., Chebbi, K., Aljughaiman, A. A., & Albarrak, M. (2023). Exploring the Interplay between Sustainability and Debt Costs in an Emerging Market: Does Financial Distress Matter? Sustainability, 15(12), 9273.
Aldomy, R. F., Al Abed, S., Al-Naimi, A. A., Saidat, Z., & Dwaikat, N. (2022). Evaluating the efficiency of Jordanian commercial banks before and during the COVID-19 pandemic. Journal of Southwest Jiaotong University, 57(3).
Altarawneh, M. H., & Shafie, R. (2018). Risks and bank performance in Jordan. Academy of Accounting and Financial Studies Journal, 22(6), 1–15.
Amin, I. A. M., & Hadi, A. R. A. (2023). Assessing Business and Financial Risks: A Case Study of Sapura Energy Bhd in the Oil and Gas Industry. Indonesian Journal of Business, Accounting and Management, 6(01), 1–8.
Amin, M. A. M., Sanusi, N. A., Kusairi, S., & Abdallah, Z. M. (2014). Inverse relationship of financial risk and performance in commercial banks in Tanzania. Investment Management and Financial Innovations, 11, Iss. 4 (contin.), 279–291.
Annah, O. (2022). Risk Management and Financial Performance of Commercial Banks: A Case of Centenary Bank Kabale Branch, Uganda. Kabale University.
Arif, A., & Nauman Anees, A. (2012). Liquidity risk and performance of banking system. Journal of Financial Regulation and Compliance, 20(2), 182–195.
Baldwin, C. Y., & Mason, S. P. (1983). The resolution of claims in financial distress the case of Massey Ferguson. The Journal of Finance, 38(2), 505–516.
Benson, T., & Ayiga, N. (n.d.). Classifying the Involvement of Men and Women in Climate Smart Agricultural Practices in Kayonza Sub-county, Kanungu District, Uganda.
Bindseil, U., Domnick, C., & Zeuner, J. (2015). Critique of accommodating central bank policies and the ‘expropriation of the saver’. ECB Occasional Paper, 161.
Boateng, K., & Dean, Y. N. (2020). Credit risk management and profitability in select savings and loans companies in Ghana. International Journal of Advanced Research, 1.
Chien, T. C., & Diah, M. L. M. (2020). Diversification Benefits in Malaysia Real Estate Investment Trusts (M-REITs): Analysis by Property Types. Research in Management of Technology and Business, 1(1), 699–713.
Dev, S. M., & Sengupta, R. (2020). Covid-19: Impact on the Indian economy. Indira Gandhi Institute of Development Research, Mumbai April.
Eton, M., Fabian, M., & Benard, P. O. (2022). Are internal controls important in financial accountability? (Evidence from Lira District Local Government, Uganda).
Eton, M., Gilbert, U., Fabian, M., Godfrey, B., & Benard, P. O. (2019). Financial Inclusion and Economic Growth in Uganda A case study of selected districts in Western Uganda.
Faia, R., Pinto, T., Vale, Z., Corchado, J. M., Soares, J., & Lezama, F. (2018). Genetic algorithms for portfolio optimisation with weighted sum approach. 2018 IEEE Symposium Series on Computational Intelligence (SSCI), 1823–1829.
Flayyih, H. H., & Khiari, W. (2023). An Empirical Study to Detect Agency Problems in Listed Corporations: An Emerging Market Study. Journal of Governance and Regulation, 12(1).
Fricker, R. D. (2008). Sampling methods for web and e-mail surveys. The SAGE Handbook of Online Research Methods. London: SAGE Publications Ltd.
Hao, N. T. N., & Wong, W.-K. (2021). Does Bank Liquidity Risk Lead to Bank’s Operational Efficiency? A Study in Vietnam. Advances in Decision Sciences, 4, 1–43.
Hassan Al-Tamimi, H. A., Miniaoui, H., & Elkelish, W. (2015). Financial risk and Islamic banks’ performance in the Gulf Cooperation Council Countries. The International Journal of Business and Finance Research, 9(5), 103–112.
Isayas, Y. N. (2021). Financial distress and its determinants: Evidence from insurance companies in Ethiopia. Cogent Business & Management, 8(1), 1951110.
Iyinomen, O. D., Okoye, E., & Ifeoma, O. H. (n.d.). Credit Risk Management and Profitability of Deposit Money Banks in West African Countries.
Jackson, J. K. (2021). Global economic effects of COVID-19. Congressional Research Service.
Jacob, A. O., Ringim, K. J., & Shuaibu, H. (2022). Liquidity risk management and financial performance of listed deposit money banks in Nigeria. International Journal of Intellectual Discourse, 5(1), 64–76.
Johnson, O., Constance, T., & Chrysostom, O. (2021). Analysis of Stakeholders Involvement in the Implementation of the MA Literature Curriculum at Kabale University Using E-Learning Approach. East African Journal of Education Studies, 3(1), 199–210.
Johnson, O., Marus, E., Adyanga, A. F., & Ayiga, N. (2023). The experiences and challenges of Doctoral Education in Public Universities compared. Journal of Social, Humanity, and Education, 3(3), 237–252.
Johora, F.-T. (2020). Non-Performing Loans (NPL) and Recovery Strategies of Prime Bank Limited.
Katel, S., Yadav, S. P. S. Y., Turyasingura, B., & Mehta, A. (2023). Salicornia as a salt-tolerant crop: potential for addressing climate change challenges and sustainable agriculture development. Turkish Journal of Food and Agriculture Sciences, 5(2), 55–67.
Khan, M. A., Hussain, A., Ali, M. M., & Tajummul, M. A. (2022). Assessing the impact of liquidity on the value of assets return. Global Business Management Review (GBMR), 14(1), 54–76.
Klar, S., & Leeper, T. J. (2019). Identities and intersectionality: a case for Purposive sampling in Survey‐Experimental research. Experimental Methods in Survey Research: Techniques That Combine Random Sampling with Random Assignment, 419–433.
Kose, M. A., Prasad, E., Rogoff, K., & Wei, S.-J. (2009). Financial globalisation: A reappraisal. IMF Staff Papers, 56(1), 8–62.
Krejcie, R. V, & Morgan, D. W. (1970). Determining sample size for research activities. Educational and Psychological Measurement, 30(3), 607–610.
Kwenda, F., & Holden, M. (2014). Trade credit in corporate financing in South Africa: evidence from a dynamic panel data analysis. Investment Management and Financial Innovations, 11(4), 268–278.
Lizarzaburu, E. R., Burneo, K., & Berggrun, L. (2021). Risk of insolvency and return of shares: an empirical analysis of Altman’s Z-Score in the Peruvian mining sector between 2008 and 2018. Revista Universidad y Empresa, 23(40), 67–99.
Marcu, M. R. (2021). The impact of the COVID-19 pandemic on the banking sector. Management Dynamics in the Knowledge Economy.
Markowitz, H., Guerard, J., Xu, G., & Beheshti, B. (2021). Financial anomalies in portfolio construction and management. The Journal of Portfolio Management, 47(6), 51–64.
Masavu, N. M. (2022). Relationship Between Financial Risk Management And The Financial Performance Of Microfinance Institutions In Kenya. KCA University.
Moturi, E. M. (2021). Effects of Mergers and Acquisitions on Financial Performance of Commercial Banks in Kenya. University of Nairobi.
Mrindoko, A. E. (2021). Effect of Credit Risk and Operational Risk on the Financial Performance of Commercial Banks in Tanzania. The Open University of Tanzania.
Mudanya, L. E., & Muturi, W. (2018). Effects of financial risk on profitability of commercial banks listed in the Nairobi Securities Exchange. International Journal of Social Sciences Management and Entrepreneurship (IJSSME), 1(1).
Mukwana, P., & Sebageni, G. (2003). An In-Depth Assessment Of The Ugandan Microfinance Market Qualitative Side Study Report. Kampala: Micro-Save Africa.
Muriithi, J. G., & Waweru, K. M. (2017). Liquidity risk and financial performance of commercial banks in Kenya.
Ndirangu, S. N. (2011). A survey into the causes of financial distress in co-operative societies in Nairobi.
Outecheva, N. (2007). Corporate financial distress: An empirical analysis of distress risk. Verlag nicht ermittelbar.
Petros, J. A., Baumann, A. K., Ruiz-Pesini, E., Amin, M. B., Sun, C. Q., Hall, J., Lim, S., Issa, M. M., Flanders, W. D., & Hosseini, S. H. (2005). mtDNA mutations increase tumorigenicity in prostate cancer. Proceedings of the National Academy of Sciences, 102(3), 719–724.
Schiereck, S. V., & Bovina, S. (2023). The Role of Impression Management in Sustainability Disclosure: Enhancing Legitimacy for Financial Institutions.
Sekiwu, D., & Ocan, J. (2022). Sociology of the COVID-19 Lockdown: Critical Analysis of Its Effects on Private School Teacher Wellbeing. In Handbook of Research on Promoting Global Citizenship Education (pp. 292–313). IGI Global.
Semusu, A., & Turyasingura, B. (2023). Nonperforming Loans and Performance of Financial Institutions in East Africa: Evidence from Kabale District, Uganda. International Journal of Finance and Accounting, 2(1), 9–20.
Sultan, K., Ahmed, R. R., Jafar, R., Murtaza, M. M., & Gardi, B. (2020). Corporate financial policy and its impact on sustainable capital structure: empirical evidence from textile firms of Pakistan. Humanities & Social Science Review, 149–158.
Turyasingura, B., Alex, S., Hirwa, H., & Mohammed, F. S. (2022). Wetland conservation and management practices in Rubanda District, South-Western Uganda.
Turyasingura, B., Ayiga, N., & Benzougagh, B. (2022). Re-thinking on land degradation and its impacts on livelihoods of the farmers in Kanungu District, Uganda.
Turyasingura, B., Hannington, N., Kinyi, H. W., Mohammed, F. S., Ayiga, N., Bojago, E., Benzougagh, B., Banerjee, A., & Singh, S. K. (2023). A Review of the Effects of Climate Change on Water Resources in Sub-Saharan Africa. African Journal of Climate Change and Resource Sustainability, 2(1), 84–101.
Turyasingura, B., Mwanjalolo, M., & Ayiga, N. (2022). Diversity at Landscape Level to Increase Resilience. A Review. East African Journal of Environment and Natural Resources, 5(1), 174–181.
Turyasingura, B., Tumwesigye, W., Atuhaire, A., Tumushabe, J. T., & Akatwijuka, R. (2023). A literature review of climate-smart landscapes as a tool in soil-water management in Sub-Saharan Africa.
Turyasingura, B., Ayiga, N., Tumwesigye, W., & Philip, H. J. (2023). Climate Smart Agriculture (CSA) for Sustainable Agriculture Nexus: A Tool for Transforming Food Systems. Turkish Journal of Agriculture-Food Science and Technology, 11(6), 1195-1199.
Veneeya, V. (2006). Analysis of modern portfolio theory. Coursework4you.[Online] Available At< Http://Www. Articlesbase. Com/Finance-Articles/Analysis-of-Modernportfolio-Theory-40421. Html>[Accessed 25 July 2016].
Worthington, I. (2012). Greening business: Research, theory, and practice. Oxford University Press.
Yehya, A., Ghuloum, S., Mahfoud, Z., Opler, M., Khan, A., Hammoudeh, S., Abdulhakam, A., Al-Mujalli, A., Hani, Y., & Elsherbiny, R. (2016). Validity and reliability of the Arabic version of the positive and negative syndrome scale. Psychopathology, 49(3), 181–187.
Žunić, A., Kozarić, K., & Dželihodžić, E. Ž. (2021). Non-performing loan determinants and impact of covid-19: Case of Bosnia and Herzegovina. Journal of Central Banking Theory and Practice, 10(3), 5–22.
Copyright (c) 2023 Alex Semusu, Eliab Byamukama Mpora
This work is licensed under a Creative Commons Attribution 4.0 International License.