menu

PECKING ORDER THEORY AND FINANCIAL MANAGEMENT IN THE CONTEXT OF HIGHER EDUCATION: A STUDY OF MAKERERE UNIVERSITY BUSINESS SCHOOL IN UGANDA

TitlePECKING ORDER THEORY AND FINANCIAL MANAGEMENT IN THE CONTEXT OF HIGHER EDUCATION: A STUDY OF MAKERERE UNIVERSITY BUSINESS SCHOOL IN UGANDA
Publication TypeJournal Article
Year of Publication2016
AuthorsOnen, D
JournalJournal of Educational Policy and Entrepreneurial Research (JEPER)
Volume3
Issue1
Pagination110-120
Abstract

his study explored the applicability of the pecking order theory in the management of finances at Makerere University Business School (MUBS) in Uganda. The study was prompted by the persistent complaints from different stakeholders about the inability (or unwillingness) of the Institution to raise sufficient funds for its activities despite the many existing avenues for resource mobilisation. The study took the interpretive and narrative design in which secondary data were collected through literature search and desk study methods while interviews were used for primary data. Study results revealed that MUBS has restricted sources of funds; considers to a large extent the cost of generating revenue in making its financial decisions; and operates under a strict credit policy that restricts the contracting of long term debts as its means of revenue generation. It was thus concluded that the legal framework under which MUBS operates disadvantages it when it comes to revenue generation, but to a large extent, MUBS’ managers apply the pecking order theory in making their financial decisions. Therefore, the researcher recommends that, the legal framework within which higher education institutions operate in Uganda needs to be revisited to expand the spheres within which the institutions can raise their revenues. Besides, the managers of higher education institutions should prudently apply the pecking order theory in order to bolster the institutions against unfavourable costs accruing from revenue generation.

 

 

File: