Effects of Corporate Governance Disclosure on Profitability of Public Listed Firms in Tanzania

Abstract

This study investigated the effect of corporate governance information (CGI) disclosure on profitability of firms listed in the Dar es Salaam Stock Exchange (DSE). 21 listed companies were studied for a period ranging from 2006 to 2021 using a mixed research method with an explanatory sequential design. Return on equity (ROE) and Return on Assets (ROA) were employed as dependent variables in the panel data analysis. CGI disclosure was an independent variable. Geographical diversification, firm age, firm size, and sales growth were the control variables. Secondary data was obtained from DSE. Qualitative data was gathered via semi-structured interviews. Thematic analysis and a random effect model with two estimates (1 and 2) were utilized to analyze qualitative and quantitative data respectively. The findings suggested that there was a positive and significant effect of CGI disclosure on firm profitability. The findings adds to the body of knowledge by signifying stakeholder’s theory. The study concluded that Disclosure of CGI may undeniably result in increased profitability. We recommended that firm managers should pay a closer look at CGI disclosure, enhance their disclosure practices, and invest in disclosure strategies that will benefit stakeholders.

Managerial Competences and Financial Performance: A Study on NGOs in Central Division-Fort Portal City

“…For example, in a study conducted among savings and credit cooperatives in Uganda by Ssekakubo and colleagues [20], a positive and significant relationship was reported. Similar finding was reported by Mwenda, Ngollo and Mwasota [21], while studying same relationships among firms listed on Dar es Salaam stock exchange. Also related results were equally found out by Apreku-Djan [22] and Yahaya & Segbenya [23].…”

“…This finding finds support from a number of studies including one carried out by Ssekakubo, Ndiwalana and Lwanga [20], among savings and credit cooperatives in Uganda. Another support is drawn from a study by Mwenda, Ngollo and Mwasota [21], in their study on managerial competence and financial performance among firms listed on Dar es Salaam stock exchange. Additional consistency is found between findings of this study and findings by Yahaya and Segbenya [23], who investigated same variables in the banking sector in Ghana.…”