This paper examines effects of capital structure on business profitability in seven processing enterprises listed on the Dar es Salaam Stock Exchange (DSE), Tanzania. Capital structure in this study was measured by long-term debt to equity ratio (LTDR) and business profitability was measured by Return on Assets (ROA), Return on Equity (ROE) and Earnings per Share (EPS). The study applied secondary data obtained from the published reports in the DSE website for a duration of ten years from 2009 to 2018. Ordinary Least Squares (OLS) regression analysis and Karl Pearson Coefficient of Correlation were employed to determine the relationship between capital structure and business profitability. Results revealed that the capital structure indicator had a weak and statistically insignificant effect on business profitability measures. The relationship between LTDR and all measures of profitability used in this study were found to be weak and insignificant. Therefore, the study concluded that capital structure is not a major determinant of firm's profitability. These findings generally concur with the predictions of the Pecking Order Theory of capital structure decisions of firms. It is therefore recommended that financial managers should follow a moderate and cautious approach to debt issues despite the benefit of tax shield in order to minimize the risk of operating under financial distress.
This study examines effects of transformation on financial performance of microfinance NGOs in Kenya. More specifically; the study seeks to empirically analyze how the selected indicators of transformation affect financial performance of microfinance NGOs in Kenya. The study adopts a quantitative research approach based on unbalanced panel data for 19 years extending from the year 1997 to 2015 acquired from Microfinance Information Exchange (Mix) Market databank on six surveyed transformed microfinance NGOs in Kenya. The study employs panel data regression models. Results indicate that debt to equity ratio and debt to asset ratio are strong drivers of financial performance in the transformed microfinance NGOs in Kenya. Institutional size has revealed significant effects on all selected measures of financial performance. Institutional age showed insignificant effects on return on asset and return on equity but revealed a significant effect on operational selfsufficiency.
This study aims to analyze effects of initial public offering on the value of a company in Tanzania using Tanzania Breweries Public Limited Company as a case study. The specific objectives of the study were to assess the influence of stock price, asset valuation and intangible assets on the value of Tanzania Breweries PLC. The study adopted explanatory research design that included time series analysis (TSA) because analysis of the past is vital for forecasting the future and employed market timing theory. The method of data collection was documentary analysis; E-views was used to analyze the data which were collected from TBL, DSE and UNCTAD from 2010 to 2020. After confirming the existence of long-term associations between variables in our model, the collected data was submitted to ordinary least square (OLS) and t-values using the vector error correlation model. Results of the study indicated that asset valuation (ASSV) had a positive but small impact on the value of the company. While the short and long-term coefficients test between intangible assets (INTA) and stock price (STKP) had a negative and minor impact on Tanzania Breweries Company’s value at 5% of critical value. It is therefore suggested that organizations should focus on developing goodwill as one of the intangible assets that attract investors and shareholders. Management as well as owners of companies should be trained on the importance of using IPO as a source of improving the equity capital rather than using debt instruments. The government should strengthen policies and loosen some regulations, particularly for foreign investors, in order to attract more direct and indirect investment.
In recent times, the issue of employee job satisfaction has been crucial for developing and achieving the aims and goals of organizations. This study examines contribution of employee’s job satisfaction on organization performance with particular reference to Mkombozi Bank in Dar es Salaam. Specifically, the study aimed to investigate the impact of talent development, to determine how reward influences employee job satisfaction and lastly the study examined how career promotion of employees affected Mkombozi Bank performance. Descriptive research study was carried out, the research used a sample size of 30 workers. The data for the study is largely obtained via semi-structured questionnaires. The study employed analytical descriptive statistical approaches for analyzing the relationship between the indicators of employees’ job satisfaction and organization performance. Inferential statistics, particularly correlation matrix and multi-regression were the statistical instruments employed for the study analysis. Findings of the study document a weak or no relationship between employee job satisfaction and organization performance. These findings might contravene by other background variables like age of employees, gender, experience, type of jobs, education, etc.) or measurement methods. Depending on the outcomes of this study, the management need to understand that, there is a connection between employee job satisfaction and organization performance. Even though the link has been found to be weak here, it was simply contravened by other variables and measurement methods employed. The management is advised to look at these findings as an eye opener for it to reflect and work on the employee job satisfaction factors in the efforts of improving organizational performance.
The local government authorities (LGAs) in Tanzania were restarted in 1980 and since then the government has gone in different programs of reforming them. However, the implementation of budget in LGAs in Tanzania is failing to produce intended outcomes. This study investigates effects of budgetary practices on budget performance of LGAs in Tanzania. The study used survey research design carried out at Ilala Municipal Council. Data collected using questionnaire was subjected to Statistical Package for Social Science (SPSS) version 23 for running the quantitative analysis. The research adopted Exploratory Factor Analysis (KMO and Bartlett's Test of Sphericity), simple regression analysis and correlation analysis to investigate the influence of budgetary practices (measured by budget planning, participatory budget and budget execution) on budget performance (supported by efficiency and effectiveness) of LGAs in Tanzania. Findings of the study indicate that budget planning, participatory budget and budget execution are directly related and they have close relationship with budgetary performance. Among the three budgetary practices tested, it was found that budget planning is a significant driver of budget performance. This study has implication to various stakeholders and actors alongside budget operations especially in Tanzania as well as the research community, where it provides new insights relating to budget practices and performance metrics that can be used to accelerate budget performance of LGAs. Decision makers in LGAs should put more emphasis on enforcing policies that improve performance of budget operations by addressing the benefits and weakness experienced in the past.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
hi@scite.ai
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.