International Journal of Academic and Applied Research (IJAAR)   Year: 2022 | Volume: 6 | Issue: 4 | Page No.: 173-193 Corporate Governance and Financial Performance in the Manufacturing Sector: A case of Uganda Clays Limited, Kajjansi Branch Download PDF Twesigye Nduhura, Ritah Nansamba, Teddy Akakikunda , Muhammad Masembe Abstract: The study sought to examine the effect of corporate governance on financial performance in the manufacturing sector, a case of Uganda Clays limited. The study objectives were; to examine the effect of corporate planning on financial performance in the manufacturing sectors, to determine the effect of corporate staff control on financial performance in the manufacturing sectors and to find the effect of corporate accountability on financial performance in the manufacturing sectors. The study was guided by theAgency Theory by Alchian and Demsetz (1972) and Business Ethic Theory by Haslinda and Benedict (2009). The research employed a cross-sectional survey design by adopting both qualitative and quantitative approaches. A sample of 76 from a population of 98 was considered for data collection using both primary and secondary data sources. From the study findings, the study showed that corporate accountability has beta values of 0.602 and significance of 0.001. This shows that in this study, corporate accountability has a high positive and significant effect on financial performance at 60.2% at the level of significance 0.001. Also, findings from table 4.19 above study showed that corporate staff control has beta values of 0.364 and significance of 0.065. This shows that in this study, corporate accountability has a second contribution with a positive and insignificant effect on financial performance at 36.4% at the level of significance 0.065. Furthermore, findings from table 4.19 above study showed that corporate planning has beta values of -0.126 and significance of 0.434. This shows that in this study, corporate planning has the least contribution with a negative and insignificant effect on financial performance at -12.6% at the level of significance 0.434. The study recommended that the corporate board of UCL need put more emphasis on ownership and responsibility for corporate planning process especially at corporate strategy level. It can be recommended that UCL's board makes corporate planning as one of their key deliverable outputs in the board's terms of reference so that its performance can be measured against this task at the end of every year. It can also be recommended that each board, during its term in office be trained on how to handle corporate planning for the cooperative society.