Corporate Governance Accountability and Transparency Practice as Determinants of Financial Performance of Medium-Scale Enterprises in Cross River State

Abstract

The study examined the relationship between corporate governance accountability and transparency practices as determinants of financial performance in medium-scale enterprises in cross river state. Two variables and two null hypotheses guided the study. The study adopted correlational survey design with a population of 434 CEOs, accountants, and managers from registered medium-scale enterprises (MSMEs) in Cross River State. To ensure statistical reliability, the Taro Yamane Formula was used to determine the sample size, which included 208 participants. The study employed proportional stratified sampling to obtain a representative cross-section of respondents, which preserved balanced representation among various subgroups. A structured questionnaire called Corporate Governance Accountability and Transparency Practice and the Financial Performance in Medium-Scale Enterprises (CGATPFPMSEQ) was used to gather data. Two experts from the University of Calabar and one from University of Uyo validated the instrument. The reliability of the instrument was analyzed using Cronbach's Alpha and it yielded a reliability coefficient of 0.85. The researcher, assisted by two research assistants, administered the structured questionnaire to respondents. Pearson Product Moment Correlation Analysis (PPMC) was used to answer the research questions and test the null hypotheses at .05 level of significance. Findings of the study indicated that there is a significant relationship between the accountability practices, transparency practices, and the financial performance of medium-scale enterprises in Cross River State. On the basis of the findings, it was concluded that effective corporate governance, characterized by a strong accountability and transparency practices has consistent relationship to improve financial outcomes in these organisations. It was recommended, among others, that business owners should promote accountability and transparency by ensuring objective oversight and strategic guidance aimed at improving the financial performance of the enterprise.