University of Khartoum

The Role of the Board of Directors in Corporate Governance Practices in Sudan’s State-Owned Enterprises

The Role of the Board of Directors in Corporate Governance Practices in Sudan’s State-Owned Enterprises

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Title: The Role of the Board of Directors in Corporate Governance Practices in Sudan’s State-Owned Enterprises
Author: Saeed, Suad Abdelrazig Mohamed
Abstract: This study aims to examine the role of the board of directors (BOD) in corporate governance (CG) practices in state-owned enterprises (SOEs), in different economic sectors in Sudan. This study adopts explanatory quantitative descriptive approach to verify the study variables. The Stratified sampling technique was used to select 150 BOD members as the study sample which represent 40 state–owned enterprises selected from 86 constituting the population of the study. A questionnaire was designed and administered. The rate of response was almost 73% of the sample. Factor analysis was used to rank the components of the independent variable (BOD) and dependent variable (CG) according to their importance. Then multiple regression analysis was used to investigate the relationship between the components of BOD and the CG principles. A statistical positive relationship was found between the role of BOD and the level of CG practice in Sudan’s SOEs. The data analysis results, consider the role of BOD components such as control through risk management mechanism, strategy formulation, BOD activities as the most significant factors affecting the level of CG practices in the SOEs in Sudan. These factors explain 63% in the variance of the corporate governance. The study recommends that the BOD should use the risk management as a tool to achieve efficient corporate governance in the SOEs. Specifically by establish the CG principles within strategies and structures of SOEs. Additionally, independency is needed to be accorded the BOD in conducting its multifunctional roles in SOEs, focusing on responsibility, institutional transparency and code of ethics as the most dominant CG principles. The study recommends that the BOD be more committed to the strategic objectives of the SOE as well as to be align its activities to confirm the implementation of CG principles. Further, the study recommend the developing a national code of corporate governance principles covering all economic institutions. Finally the study recommends that the corporate governance from management prospective has to be considered as strategically comprehensive approach to cover all business enterprises.
URI: http://khartoumspace.uofk.edu/123456789/27076


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