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Financial Performance in the Selected Microfinance Institutions in Uganda

Author: Dr. Sunday Arthur, Dr. Turyahebwa Abanis, Dr.Byamukama Eliab, Dr. Novembrieta Sumil
Publisher: International Journal of Engineering Research & Technology (IJERT) ISSN: 2278-0181
Published: 2013
Section: College of Economics and Management

Abstract

This study was undertaken to examine the degree of financial performance in the selected Microfinance institutions central region, Uganda. The ex- post facto or retrospective, prospective designs and descriptive survey design, and specifically descriptive comparative and descriptive correlation strategies were employed. A minimum sample of 266 was used in data collection and analysis. Data was analysed using means and t-test. The findings revealed that the degree of financial performance in the microfinance institutions in central region Uganda is high with an overall average mean of 3.09 this implies that that most financial institutions in Uganda are financially sound. The contingency theory by Joan Wood wards (1958) as cited and explained by Simons‟ (1995) levers of management system control model was authenticated and validated. The conclusion was drawn that the degree of financial performance in the microfinance institutions in central region Uganda was generally high and it was recommended that Microfinance institutions should enhance financial reporting framework to improve on the liquidity position, improve assets value, market share, financial sustainability as well as portfolio quality