The Influence of Firm Leverage on Performance Among Listed Firms in Dar es Salaam Stock Exchange

Mwenda, Beny; Ndiege, Benson Otieno; Pastory, Dickson

doi:10.1007/978-3-030-68836-3_24

Cited by 3 publications

(3 citation statements)

References 12 publications

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“…Table 6 presents a summary of the results from the MLR analysis conducted to explore the relationship between SSCMPs and financial sustainability in food processing SMEs. This study follows the recommendation of scholars (Mwenda, Ndiege, & Pastory, 2021b; Allam et al , 2021; Juma et al , 2021) and utilizes the firm's profit as the primary indicator of financial sustainability. Before conducting the MLR analysis, module fitting information was established through analysis of variance (ANOVA).…”

Section: Resultsmentioning

confidence: 99%

The influence of sustainable supply chain management practices on financial sustainability of food processing SMEs

Mwenda

Israel

Mahuwi

2023

LBSJMR

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PurposeThe importance of sustainable supply chain management practices (SSCMPs) in the financial performance of firms is increasing significantly. However, the influence of SSCMPs on financial performance can vary across sectors and contexts. This research aims to provide a comprehensive understanding of the influence of SSCMPs on the financial sustainability of small and medium-sized enterprises (SMEs) in the food processing industry. For this, the influence of sustainable environment practices, customer and supplier relationships, social SCMPs and lean supply chain on the financial sustainability of food processing SMEs is studied.Design/methodology/approachA questionnaire survey was conducted to collect data from 56 food processing SMEs in Mbeya, Tanzania. The study employed a cross-sectional research design and a census approach to capture data from all eligible SMEs in the target population. Exploratory factor analysis (EFA) and multiple linear regression (MLR) were utilized as the primary data analysis techniques.FindingsThe findings of the study revealed a positive and significant influence of various SSCMPs on the financial sustainability of food processing SMEs. Specifically, sustainable environment management practices (β = 0.147, p = 0.000), supplier relationship management (SRM) (β = 0.715, p = 0.001), customer relationship management (CRM) (β = 0.894, p = 0.016), social SCMP (β = 0.901, p = 0.005) and lean supply chain practices (β = 0.675, p = 0.003) were all found to have a significant effect on the financial sustainability of the surveyed food processing SMEs.Practical implicationsThe study recommends the need to plan and integrate SSCMPs in firms’ operation processes, promote collaboration and networking and offer capacity-building initiatives that equip food processing SMEs with the necessary skills and knowledge to implement SSCMPs effectively. These will nurture effective adoption of SSCMP, leading to improved operations, environmental performance, financial sustainability and long-term viability of the sector.Originality/valueWhile SSCMPs have gained attention in the literature, the specific focus on its impact on financial sustainability in the context of food processing SMEs adds originality to this research. Industry stakeholders and policymakers can utilize the findings of this study to develop supportive policies and programs that promote sustainable supply chain practices and enhance financial sustainability in the food processing sector.

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Section: Resultsmentioning

confidence: 99%

The influence of sustainable supply chain management practices on financial sustainability of food processing SMEs

Mwenda

Israel

Mahuwi

2023

LBSJMR

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“…In a business, world profitability can be used to measure the success or failure of organizations. Various accounting ratios are used to measure profitability, to name only a few, such as ROA, ROE, Gross profit margin and operating profit margin (Mwenda & Pastory 2022;Mwenda et al 2021). In this study, we focus on ROE as a gauge to measure profitability.…”

Section: Hypothesis Developmentmentioning

confidence: 99%

Do Employee Stock Ownership Plans Affect the Quest for Firm Profitability? Evidence from Tanzania

Mwenda

Ngollo

2023

J. Theor. Appl. Manage.

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Objective: The purpose of this research is to examine the impact of Employee Stock Ownership Plans (ESOP) on firms' profitability of Tanzanian publicly listed firms. Design/Methods/Approach: The research utilized a longitudinal research design by employing secondary data from firms listed in the Dar es Salaam Stock Exchange (DSE). The random effect model with two estimations was utilized to analyze data. Findings: Results suggest that ESOP has a positive and significant effect on the firm’s quest for profitability. Originality: The originality or uniqueness of this study lies in providing further understanding from a different economic and cultural perspective and enhancing the results of academic studies in this area. Practical/Policy implication: For business owners, the results of this study can be used as a root from which they can have a reason to grow their own ESOP and increase their wealth. For policymakers, it is a base for policy formulation that will enhance the profitable tax base.

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“…Missing information was detected in certain SACCOSs, necessitating excluding those observations from the dataset. Consequently, the study used an unbalanced panel dataset comprising 198 SACCOSs, with observations ranging from 826 to 837 firms, similar to previous studies that used unbalanced panel data, such as those conducted by Mwenda et al (2021), andSwai (2016). The researcher directly approached the SACCOSs in Dar es Salaam and Arusha to collect the data.…”

Section: Sample and Datamentioning

confidence: 99%

The Impact of Board Characteristics on the Financial Performance of Savings and Credit Co-operative Societies in Arusha and Dar es Salaam, Tanzania

Mlay

Temu

Mataba³

2023

Tanzanian Economic Review

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This paper examines the impact of board characteristics—such as size, gender diversity, skills, and meeting frequency—on the financial performance of SACCOSs in Tanzania. The study focused on three financial performance indicators: net loan income, operating efficiency ratio, and deposit-to-asset ratio. Descriptive statistics and linear regression models were used to analyse panel data collected from financial reports of 198 SACCOSs for five years (2014–2018). The results show a positive and significant relationship between financially-skilled board member(s) and the depositto-asset ratio; conversely, they were negatively associated with the operating efficiency ratio. The results further show that board meetings are positively and significantly related to net loan income, whereas board size is positively associated with the operating efficiency ratio. Moreover, the paper found no evidence of a relationship between women’s board members and financial performance. Impliedly, having financially-skilled directors on a board and regular board meetings facilitated financial performance in a SACCOS. Thus, the paper calls for board members to have financial skills, and boards to conduct regular meetings for constructive advice and effective monitoring to boost financial performance. JEL Classification: G2, G20, G3, G30, G39, M49

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The Influence of Firm Leverage on Performance Among Listed Firms in Dar es Salaam Stock Exchange

Cited by 3 publications

References 12 publications

The influence of sustainable supply chain management practices on financial sustainability of food processing SMEs

The influence of sustainable supply chain management practices on financial sustainability of food processing SMEs

Do Employee Stock Ownership Plans Affect the Quest for Firm Profitability? Evidence from Tanzania

The Impact of Board Characteristics on the Financial Performance of Savings and Credit Co-operative Societies in Arusha and Dar es Salaam, Tanzania

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