Corporate governance, management competences and financial performance of selected money transfer companies in Somalia

Abstract

The study examined the relationship between corporate governance, management competency and financial performance of money transfer companies in Somalia. A sample of 32 firms were selected and used in this study with the unit of analysis being the money transfer companies and the targeted respondents were the Chief Executive Officers, Finance Managers and Board Members. The study findings revealed that variation in money transfer companies’ financial performance was explained by a combination of corporate governance and management competence. The study therefore recommends that the money transfer companies put in place better governance mechanism, in particular a board, to direct and control the business operations. This will improve procedures, systems, and processes for accountability which is a key factor in corporate governance and superior management that will be responsible for the most important decisions making processes for efficient corporate performance.