ASSESSMENT OF OWNERSHIP STRUCTURE AND CORPORATE GOVERNANCE PRACTICE; THE CASE OF HIDASIE TELECOM SHARE COMPANY

Abstract

It is the separation of ownership and control that produced the concept of corporate governance. As a result, this research paper was prepared with the objective of assessing and understanding the level of ownership structure and corporate governance practice in HTSC, so as to improve the understanding of various stakeholders and also to shed light on the adoption of best practices and principles into the HTSC‟s corporate governance system. For the purposes of this study, I applied a descriptive and exploratory research design. A descriptive study is concerned with determining the frequency with which something occurs or the relationship between variables and explanatory research design for qualitative data presentation. Primary and Secondary data collected from one head of the various departments and districts. In order to establish the relationship between corporate governance and ownership structure for HTSC, self-administered drop and pick questionnaires was distributed among 100 sampled employees currently employed by HTSC. Quantitative data collected and analyzed by used of descriptive statistics using SPSS to do analysis and presented through percentages, means, standard deviations and frequencies. In order to get relevant data from the target population questionnaire and interviews were used the qualitative data (data from interview) were analyzed together with the quantitative one to triangulate the results found from the questionnaire. The finding of the study also disclosed that the board and the management of the HTSC are not effective in discharging their roles and responsibilities. In addition weak legal controls and law enforcement within the industry and weak relationship between executive’s managements and employees of the HTSC are possible barriers for the implementation of good corporate governance within the company. As a result, based on the major findings, the study reached a certain conclusion and presented some possible recommendations so as to alleviate the problems.