A Study On The Relationship Between Performance Contracting And Performance Of State Owned Enterprises:The Case Of Agricultural Finance Corporation (AFC)

Abstract

This study set out to determine the relationship between performance contracting and the performance of the Agricultural Finance Corporation. The study involved analyzing financial and non financial performance indicators for the period 2000101 up to 2006/07 and performing a trend analysis as well as a comparative analysis to determine the impact of performance contracting on the performance of AFC. An overall analysis showed that performance contracting has not worked for the Corporation.Equally, the analysis showed that AFC does not totally conform to the conventions of a business concern. In this regard, the performance of the corporation is affected by many other factors including political influence and government imposed policies which the Corporation can not easily negotiate.