Frameworks Underpinning Corporate Governance: Evidence on Ugandan Perceptions

ABSTRACT Manuscript Type: Empirical Research Question/Issue: This paper sets out to investigate perceptions about corporate governance practices in the developing African nation of Uganda. The study employs interview and questionnaire analysis to examine the part played by a range of factors in supporting effective governance. Research Findings/Results: The findings suggest that pervasive corruption and weaknesses in underlying frameworks have hampered attempts to improve practice. The results indicate that the mere emergence of detailed governance codes in developing countries does not necessarily mean that de facto practices will improve. Theoretical Implications: The results suggest that corporate governance standards in developing countries may appear on paper to be broadly similar to those in developed countries. However, a widespread perception exists that Ugandan frameworks are not yet strong enough to support what might normally be considered to be “good” practice. Sound corporate governance is seen as being a multi‐faceted notion, with a range of political and social frameworks requiring strengthening before meaningful improvements can be made. Practical Implications: The evidence indicates that attempts to improve governance standards in a particular nation require more than the simple publication of codes of best practice. Root and branch changes in a wide‐range of contextual factors, including at political and cultural levels, are required to provide the conditions in which meaningful improvements in corporate governance will occur.