Browsing by Author "Tago, Gwatako"

Now showing 1 - 2 of 2

Exploring the Causal Effect of Cash Conversion Cycle Signals on Profitability of Tanzanian Manufacturing Firms
(International Journal of Economics, Finance and Management Sciences, 2024-10-31) Tago, Gwatako; Sumawe, Sadiki
Management of Cash Conversion Cycle (CCC) components is piercing for firms’ profitability. Financial Managers world-wide, adopts cash conversion cycle in measuring and estimating the level of risks and return of their firms for profit and wealth maximization. As a result, managers keep an eye on the drivers and derailers of profitability. The study focused on establishing the causal effect of cash conversion cycle on profitability while exploring whether single or double digit indicators matter for profitability determination of manufacturing firms. Theoretical and extant empirical literature reviewed guided the scholar foundations for gap identification. The findings were elicited from annual audited financial statements of companies enrolled on DSE from 2008 to 2022 with a sample of 8 manufacturing firms for 15 years, aggregating to a total of 120 observations. Profit was estimated using Profit-After Tax (PAT) and the Cash Conversion Cycle was measured through Inventory Turnover Days (ITD), Debt Collection Days (DCD) and Credit Payment Days (CPD). In model selection, Hausman test was adopted to pick between fixed effect and random effect model while Panel Regression was favored in estimating the causal effect of CCC and profitability. Based on regression analysis, Inventory Turnover Days (ITD) has a negative impact on firms’ profitability and Debt Collection Days (DCD) revealed an insignificant positive relationship between DCD and profitability. Furthermore, the study found a negative relationship between Credit Payment Days (CPD) and profitability. On the other hand, the research found that profitability of most firms with double digit cash conversion cycle proved to be higher than those firms with single or triple cash conversion cycle. The research findings unveiled that CCC correlates positively with profitability and significantly impacts manufacturing firms’ profitability. So, for DSE firms to increase their profitability and firm value under modern competitive era, concentration on double digit cash conversion cycle is paramount ought to the nature of business and assets invested in. Therefore, we conclude that there is a significant causal-relationship of cash conversion cycle on profitability for firms in Tanzania, indicating the necessity of managing appropriately the CCC components.
Gauging the Ambivalent Influence of Product Signalling on Smartphone Purchase Decision in Mwanza, Tanzania
(African Journal of Accounting and Social Science Studies (AJASSS), 2024-11-30) Tago, Gwatako
Cellular industry has experienced an exponential growth and enormous jumps since its inception. Smartphones are getting smarter and stylish than in their earlier decades when the idea was immature. Consequently, the production of varied brands of mobile phones is rapid and huge. The influx of multitudinous brands of smartphones in the Tanzania market has exposed consumers in this country to choice dilemma. The current study sought to establish the effect of product knowledge on smartphone consumers’ purchasing behaviour. A mixed research approach was deemed appropriate since it entails collection of both numerical and non-numerical data for analysis. The use of Cochran formula led to inclusion of 384 participants. Nevertheless, the non-response of some individuals limited the sample size to 75 participants. Hotelling’s T-squared approach facilitated the analysis of quality mean difference between informed and uninformed customers. Further, field observation was made by a researcher along Lumumba Street in Mwanza. Data analysed by linear regression facilitated the estimation of the respondents ‘attitude differences. The gathered evidence showed that smartphone buyers with adequate information prior to shopping demonstrated higher quality products compared to buyers with limited information prior to shopping. Equally, the collected evidence showed that the price of smartphones increased with its quality, implying consumers paid extra cash on smartphones of higher quality. Moreover, the findings showed that preinformed customers rarely considered buying low quality phones sold at low prices. The conclusion drawn from the collected evidence is that there is high correlation between product signalling and consumers’ purchase decision for smartphones. The study recommends that, the Tanzania Communication Regulatory Authority (through TCRA), together with the Tanzania Bureau of Standards (TBS) closely monitor brands, specifications and quality of imported smartphones in the country. Further, sharing product online reviews by smartphone manufacturers/vendors is likely to improve consumers’ purchase decisions. Lastly, the study is useful to smartphone vendors to develop their marketing approaches based on customers’ preferences.