MODERATING INFLUENCE OF LEGAL FRAMEWORK ON BOARD LEADERSHIP PRACTICES AND CORPORATE GOVERNANCE PERFORMANCE IN PUBLIC INSTITUTIONS IN RWANDA.

Abstract

Purpose: The purpose of the study was to test the moderating influence of Legal Framework on board leadership practices and corporate governance performance in public institutions in Rwanda.

Methodology: The study adopted a descriptive and explorative design. The target population for the study was 214 managers from 10 public institutions in Rwanda. Stratified random sampling technique was used to get a sample of 195 respondents who were selected from the top management and middle managers staff. Data collected was analyzed through SPSS version 21.

Findings: The R² for Board composition practices before moderation was 57% but after moderation, the R² increased significantly to 63.6%. The R² for Ethical practices before moderation was 44% but after moderation, the R² increased insignificantly to 49.6%. The R² for Local Advocacy Practices before moderation was 65.8% but after moderation, the R² increased significantly to 77.4%. The R² for Decision-Making Practices before moderation was 44% but after moderation, the R² increased insignificantly to 49.6%. The hypothesis was tested and the study found out that Legal Framework was a positive and significant moderating variable for Board composition practices0.02<0.05 and Ethical practices at 0.02<0.05. However, Legal Framework did not have a significant moderating effect on Local Advocacy Practices0.24>0.05.

Contribution to theory practice and policy: Resource identification and utilization form the legal framework of are successful program. The utilization of these law must directly affect the immediate Moderating role of legal framework and corporate governance performance public institutions in Rwanda. It can therefore be concluded that respondents in the study utilized in public institutions in Rwanda in activities that directly and positively impacted on moderating role.