0% found this document useful (0 votes)
280 views12 pages

NSFAF Proposal

This document is a research proposal submitted by Shindingeni Sakaria K to evaluate the corporate governance principles and their effects on the performance of the Namibia Students Financial Assistance Fund in Windhoek. The proposal outlines the background and objectives of the research, which are to determine how corporate governance impacts NSFAF's performance, evaluate NSFAF's governance processes and compliance, and recommend strategies for improvement. It also defines key terms, and limits the study to NSFAF's Windhoek office due to constraints.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
280 views12 pages

NSFAF Proposal

This document is a research proposal submitted by Shindingeni Sakaria K to evaluate the corporate governance principles and their effects on the performance of the Namibia Students Financial Assistance Fund in Windhoek. The proposal outlines the background and objectives of the research, which are to determine how corporate governance impacts NSFAF's performance, evaluate NSFAF's governance processes and compliance, and recommend strategies for improvement. It also defines key terms, and limits the study to NSFAF's Windhoek office due to constraints.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 12

EVALUATION OF CORPORATE GOVERNANCE PRINCIPLES AND ITS EFFECTS ON

THE PERFORMANCE OF NAMIBIA STUDENTS FINANCIAL ASSISTANCE FUND IN

WINDHOEK

A RESEARCH PROPOSAL SUBMITTED IN PARTIAL FULFILMENT OF THE

REQUIREMENTS FOR DEGREE,

BACHELOR OF ACCOUNTING (HONORS)

OF

THE UNIVERSITY OF NAMIBIA

BY:

SHINDINGENI SAKARIA K

201703333

1 JUNE 2020

SUPERVISOR: MS T. CHATA

Co SUPERVISOR: MS C. Mhaka
1. INTRODUCTION

1.1 Background of the research proposal

The NSFAF is a development funding institution that was established to contribute to

the improvement of Namibia’s human capital. The entity’s core function is to provide

financial assistance to students in order to enable them to study or conduct research,

and more specifically, to facilitate the training of students in prescribe courses of field

of study at approved tertiary institutions [ CITATION Oke20 \l 1033 ] . Soon after

independence, the demand for new recruits in the Civil Service was significantly

decreased following the integration of the various ethnic-based administrations into

one national Government.

The Namibia Student Financial Assistance Fund is established to replace the Public

Service bursary scheme whose purpose was to train people to work solely in the Civil

Service [CITATION MIN05 \l 1033 ]. Hence the Public Service bursary scheme lost its

relevance. In the meanwhile, the demand for financial assistance by students was ever

on the increase. Cabinet therefore decided to replace the bursary scheme with the

NSFAF, which would allow the Government to continue addressing the human

resources need of the country in general beyond the needs and requirements of the

Public Service [ CITATION MIN05 \l 1033 ]. This NSFAF was approved in 1996 and

being implemented with effect from January 1997. Ultimately the Namibia Student

Financial Assistance Fund (NSFAF) Act 2000 (Act No.26 of 2000) came into being

and operational.
1.2 Problem statement

The Ministry of Education, Art and culture received the largest allocation, which at

N$ 13 767697 account for 21 percent of the government’s budget for the current

financial year 2019/2020[ CITATION New19 \l 1033 ] . The allocated money is

apportioned to various institutions within the borders of the country. NSFAF is one of

the institution that registered the under the ministry of Education, Art and culture.

The core purpose of NSFAF is to fund students from different institutions and this

will prevent the universities from experiencing cash flow problems, but the Namibia

Students Financial Assistance fund, have been consistently struggling to provide

tuition fees for all eligible students. s

Therefore, the main purpose of this research proposal is to evaluate the corporate

governance principles and its effects on the performance in NSFAF.

1.3 Objective of research

The objectives of this research proposal are:

 Determine elements of corporate governance that impact on corporate

performance at NSFAF

 Evaluate corporate governance processes at NSFAF

 Recommend strategies for improving corporate governance in NSFAF

 Evaluate the compliance of corporate governance principles in NSFAF

1.4 Significant of the research proposal


The findings on this research proposal will contribute to the body of literature reviews

on the corporate governance principles in Namibia Students Financial Assistance

Fund. The findings will also outline the correct procedure to be followed by internal

auditors when they are reporting. Lastly, the findings will help NSFAF to come up

with good strategies to collect refunds from working students.

1.5 Definitions

corporate - is a business organized with legal rights and governed by a body separate

from the owners.

governance- these are principles or activities which seek to provide guidance to

control an entity operation.

corporate governance- is defined as the systems by which companies are managed,

and controlled.

principles – refers to moral rule or a strong belief that influences your actions

1.6 Limitation of the research proposal

The following are the limitations of the research proposal:

 The research proposal is limited to 5 months, I will not have enough time to

question my targeted population, so this will limit my research proposal

findings.

 Time constraints- there will be no enough time to visit all NSFAF offices in

Namibia, because I am a full time registered student.

 Financial constraints- I will be challenged with transport cost to carry out my

research proposal, because I do not have any source of income.

1.7 Delimitation of the research proposal


The following are the delimitation of the research proposal:

The offices of NSFAF are dispersed all over the country, so an individual can carry

out his/her research proposal in those regional offices. For this research proposal, I

have chosen the office of Namibia Students Financial Assistance Fund that based in

Windhoek to conduct my research proposal on, because the transport cost will be

bearable and this will make me to manage my time efficiently and effectively in terms

of collecting information concerning with the corporate governance principles and its

performance in NSFAF.

1.8 Sections summary

Section one-this section gives an overview of the background of the research proposal

whereby the research problem is discussed. It also looks at the research objectives and

the significant of the proposal. Lastly, the limitations and delimitations of research

proposal are given. Section two- deal with literature review and it’s is divided into

appropriate headings and sub-headings that provide a comprehensive account of the

theoretical knowledge of corporate governance and its effects on corporate

performance.

2. Literature Review

2.1 Introduction

This section provides a summary of what was found in the literature review in

relation to the research objectives. It also comprises at the definition of corporate

governance, the evolutional of kings reports and the elements of good corporate

governance.
2.2 Definition of corporate governance

Corporate governance is defined as a process of supervision and control intended to

ensure that the company’s management acts in accordance with the interest of

shareholders [ CITATION Sol07 \l 1033 ] . corporate governance is also defined as the

system of regulating and overseeing corporate conduct and of balancing the interest

of all internal stakeholders and other parties (external stakeholders, governments and

local communities), who can be affected by the corporation’s conduct, in order to

ensure responsible behavior by corporations and to achieve the maximum level of

efficiency and profitability for a corporation [ CITATION DuP11 \l 1033 ]. The

importance of good corporate governance is about effective and responsible

leadership. This means, there should be ethical values in place, this includes

responsibility, accountability, fairness and transparency [CITATION Kin01 \n \l 1033 ].

2.3 The King Report & Corporate governance

Three reports were published in 1994 (King I), 2002 (King II), and 2009 (King III)

respectively. In 1994 the first King reports on corporate governance (King report 1

1994) was published, the first corporate governance code for South Africa. It

established recommended standards of conduct for boards and directors of listed

companies, banks, and certain state-owned enterprises. In 2002, when the Earth

Summit was held in Johannesburg, Professor Mervin King pushed for a revision of

the report (King II report 2002), including new sections on sustainability, the role of

the corporate board, and risk management. This revised code of governance was

applicable from March 2002. In the next version, the 2009 King III report,
governance, strategy and sustainability were integrated. the King III report is

applicable to all entities, public, private and non-profit. Prof Mervin King encourages

all entities to adopt the King III principles and explain how these have been applied

or are not applicable. The code of governance was applicable from March 2010.

2.4 Theories of Corporate Governance

The principal-agency theory stems from the principal-agency problem arising from

the fact that the aim of corporate governance is to align, as much as possible, the

interests of individuals, corporations and society. Separation of control from

ownership firm implies that executive managers manage a corporation on behalf of

the corporation owners [ CITATION Kie07 \l 1033 ] . The stewardship theory of

management is a counter strategy to the agency theory. According to Oslon, 2008, the

stewardship theory of management and the agency theory have both focused on the

leadership philosophies adopted by the owners of an organization. According to this

stakeholder theory, corporate governance is primarily concerned with how effective

different governance systems are in promoting long term investment and commitment

amongst the various stakeholders.

2.5 Elements of good corporate governance

Good Corporate Governance is essentially about effective leadership characterized by

ethical values of responsibility, accountability, fairness and transparency and is not

static but evolutionary. Good corporate governance creates an ongoing monitoring of


balance power within company, ensure compliance with regulatory obligations and

lastly, monitored and managed risks at acceptable level.

2.6 Section Summary

This section reviewed literature related to corporate governance and its

effects on corporate performance of NSFAF. The section also covered the definitions

of corporate governance, theories of corporate governance, and elements of corporate

governance.

3. Methodology

3.1 Introduction

The purpose of the research proposal is to evaluate the corporate governance

principles and its effects on the performance in NSFAF. The previous section was

based on the literature review, so the main focus of this section is therefore, the

methodology used in the section which encompasses the research design, population,

sample and sampling, a detailed description of the data collection instrument, data

analysis and ethical considerations. Validity and reliability is also explained.

3.2 Research Design

This section will discuss the research design for this study. Research may be

classified in two types which could be quantitative or qualitative. The research design

determines the research methods and procedures to be applied as determined by the

nature of the research proposal problem. The research proposal will employ a

quantitative research approach, which aims to measure using numbers. Quantitative


research will be selected because the research proposals will intend to create a

numerical description.

3.3 Population

The target population of this research proposal will be the employees at NSFAF that

located in Khomas region.

3.4 Sample Size and Sample Techniques

Sampling involves the selection of a small group of people from the larger population

to be studied. In research, there are two types of sampling namely, probability and

non-probability sampling. This research proposal will employ a convenience

sampling which is a non-probability and the participants will be chosen base on their

availability and accessibility. The whole population will be selected for this research

proposal as a sample because it is a small group and can be covered.

3.5 Data Collection Instruments

The structured questionnaire method will be used to collect relevant data. The

questionnaire will be pre-tested by conducting a pilot survey on 5 employees at

NSFAF and will be amended, if necessary based on the feedback from the pilot

survey.

3.6 Reliability and Validity of the Instruments


To get a verity of information and reliable one, all source of information will be

accepted not considering the party. All primary, secondary and tertiary will be

considered.

3.7 Data Processing and Analysis

After collecting data, it will be checked for completeness. Data collected will be

analyzed using descriptive statistics with descriptive statistical tables, graphs and

charts. The purpose of using descriptive statistics is to provide a better understanding

of the data presented, the interpretations made and the meanings or conclusions

derived there from. The data will be presented in tables, pie charts and lastly, the

results will be interpreted based on computed statistics such as mean, mode, and

variances as well as correlation of variances.

3.8 Research Ethics

During the duration of conducting this study, all participant will be informed about

the objectives and the benefits of the study before administering the questionnaire and

interview schedule. Their identity will be kept confidential, and will be protected at

all cost. Furthermore, no participant right will be violated, for instance if they opt not

to answer particular answers, they will not be forced too.

3.9 Section Summary

The purpose of Chapter 3 was to provide the methodology used to undertake the

study. The research design used has been discussed and explained. The research

instruments and procedures used in data collection as well as research designs have
been outlined in this section. The research proposal will adopt the quantitative

research method and this has been justified.

References

Du Plessis, J. J. (2011). Principles of Contemporary.

III, K. R. (2001). King III.

Kiel, G. &. (2007, July 4). Can Directors Impact Performance? .

Ministry of Education. (2005, November 08). NAMIBIA STUDENTS FINANCIAL ASSISTANCE FUND (NSFAF)
POLICY. p. 1.

New Era. (2019, April 29). N$ 13 billion education budget not enough.

Oliveira, O. N. (2020, 02 12). The Namibian . 1200 stidents scramble for NSFAF pie, p. 2.

Oslon. (2008). Integrating the individual and the organization. New York: NY: Wiley.

Solomon.J. (2007). Corporate governance and accountability. West Sussex, England: John Wiley.

You might also like