Accounts

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This Community comprises of two courses which are Accounts and Public Sector Accounting and Finance

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The Impact of Foreign Direct Investment on Employement Creation in Tanzania
(ZENITH International Journal of Business Economics & Management Research, 2012-01) Mpanju, AK
As an engine of economic development for developing countries, foreign direct investment (FD) inflows have contributed for creation of employment, technology transfer to local firms, and managerial know-how; have had positive effects on exports and access to external markets. This study tries to analyze the impact foreign direct investment (FDI) inflows on employment generation/creation of Tanzania. It specifically estimates the effect of FDI on employment creation in Tanzania for the period of 1990 to 2008. The study adopted a case study design with a quantitative research approach and it represents an econometric analysis using statistical package for social sciences (SPSS). The results show that there is strong (positive) relationship between the variables. This means that foreign direct investments (FDI) have a big significant impact on the pattern of employment opportunities. Then from above analysis we may conclude that Tanzania’s employment creation especially, does depend upon foreign direct investment inflows.
Analytical Evaluation of Fiscal and Monetary Policies in Macroeconomic Management in Tanzania
(ZENITH International Journal of Business Economics & Management Research, 2012-07) Mpanju, AK
This paper tries to analyze the relative effectiveness of monetary and fiscal policies on macroeconomic management and how they have influenced economic growth and development in Tanzania for the period 1990 to 2009. The essence of the study was to evaluate the trend of narrow money (M1), broad money (M2), government revenue, government expenditure, government budget deficits, and gross domestic product (GDP) growth rates. The study adopted a case study design with a quantitative research approach and it represents an econometric analysis using statistical package for social sciences (SPSS). The empirical analysis on basis of ordinary least squares method suggests that, there is moderate (positive) relationship between the variables (narrow money, broad money, government revenue receipts, and gross domestic product growth rates). This means that these variables have no big significant impact on the pattern of gross domestic product (GDP) growth rates. Also, the analysis suggests that budget deficits have moderate (negative) relationship with gross domestic product growth rates. Thus, the study finds no signified relationship between most of the components and we may conclude that fiscal policy and monetary policy does not exert a strong impact on economic activities in Tanzania.
Analyzing the Impact of Inward Foreign Direct Investment on Employment Creation in the East African Community (EAC)
(ZENITH International Journal of Business Economics & Management Research, 2012-08) Mpanju, AK
As an engine of economic development for developing countries, foreign direct investment (FD) inflows have contributed for creation of employment, technology transfer to local firms, and managerial know-how; have had positive effects on exports and access to external markets. This study tries to analyze the impact foreign direct investment (FDI) inflows on employment generation/creation within the East African Community (EAC), which is the regional intergovernmental organization of the Republics of Tanzania, Kenya, Uganda, Rwanda and Burundi. It specifically estimates the effect of FDI on employment creation in the EAC for the period of 2004 to 2008. The study adopted a case study design with a quantitative research approach and it represents an econometric analysis using statistical package for social sciences (SPSS). The results show that there is strong (positive) relationship between the variables. This means that foreign direct investments (FDI) have a big significant impact on the pattern of employment opportunities. Then from above analysis we may conclude that EAC’s employment creation especially, does depend upon foreign direct investment inflows.
Impact of Inflation on Economic Growth: A Case Study of Tanzania
(Asian Journal of Empirical Research, 2013) Mwakanemela, K
Like several other countries both industrialised and non-industrialised, one of the central objectives of macroeconomic policies in Tanzania is to promote economic growth and to keep inflation at a low level. However, there has been substantial debate on whether inflation promotes or harms economic growth. Motivated by this controversial, this study examined the impact of inflation on economic growth and established the existence of inflation growth relationship. Time-series data for the period 1990 -2011 were used to examine the impact of inflation on economic growth. Correlation coefficient and co-integration technique established the relationship between inflation and GDP and Coefficient of elasticity were applied to measure the degree of responsiveness of change in GDP to changes in general price levels. Results suggest that inflation has a negative impact on economic growth. The study also revealed that there was no co-integration between inflation and economic growth during the period of study. No long-run relationship between inflation and economic growth in Tanzania.
Relationship Between Sources of Funds and Outreach in Savings and Credits Cooperatives Societies: Tanzanian Case.
(Tanzanian case. European Journal of Business and Management, 2013) Haule, T.B
There is continuous and increasing flow of funds from commercial banks and other formal financial institutions to the Savings and Credits Cooperative Societies (SACCoS) in Tanzania. This experience causes contradiction of whether it is a blessing or a threat to the SACCoS existence. This paper examines the linkage between sources of funds and level of outreach as a performance indicator in SACCoS. We employ panel data which are obtained from the Ministry of Agriculture Food and Cooperatives for the period 2005-2012 and analysis is based on a panel data regression model. Findings indicate that both external and internal sources of funds are positive and significantly related to outreach. However, the results indicate that external sources funds are becoming a central part of the SACCoS loan portfolio as compared to internal sources of funds. This is a threat to saving practices in SACCoS. We recommend that policy and rules governing SACCoS indicate clearly the model and level of linkage to maintain the principles, structure and objectives of member-based microfinance.
The Relationship Between Capital Structure and Commercial Bank Performance: A Panel Data Analysis
(International Journal of Financial Economics, 2013) Dickson, P; Marobhe, M.I; Kaaya, I
The study was aimed at identifying the relationship between capital structure and bank performance. The bank performance was indicated by Return on Asset as the dependent variable and was regressed against the components of capital structure using multiple regression models. The results depict the negative relationship between capital structure and bank performance as they indicate negative coefficients. The value of R square and adjusted R square was low, and the study recommends being extended to more variables as it can help to improve the fitness of the model.
An Empirical Analysis of the Relationship Between Working Capital Management and Profitability: Panel Evidence from Listed Manufacturing Companies in East Africa
(European Journal of Business and Management, 2014) Marobhe, M.I
This paper assesses the relationship between working capital management and profitability of manufacturing companies listed in East African stock exchange markets in the period (2005-2012). Profitability which was the dependent variable was represented by Return on Assets (ROA) and Operating Margin (OM) while the independent variable, working capital management was represented by Current Ratio, Quick Ratio, Cash Cover Ratio, Inventory Holding Period, Receivables’ Collection Period, Payables’ Deferral Period and Cash Conversion Cycle. The study also used Sales Growth, Debt Ratio and Company Size as the control variables. Data analysis was conducted using Pearson Correlation and Multiple Regression Analysis and it was observed that there exists a significant relationship between the components of working capital, especially cash conversion cycle and profitability. The cash conversion cycle was negatively related to operating margin (OM) hence it is recommended that companies should shorten the cash conversion cycle by keeping the receivables’ collection period, payables’ deferral period and inventory holding period o the optimum level.
The Influence of Capital Structure on the Performance of Manufacturing Companies: Empirical Evidence from Listed Companies in East Africa
(Research Journal of Finance and Accounting, 2014) Marobhe, M.I
This paper evaluates the influence of capital structure on the performance of manufacturing companies listed in various stock exchanges in East Africa. This study used panel secondary data, where the financial statements of 12 manufacturing companies were selected from (2005-2012). Data analysis was done using multiple regression analysis which established the relationship between performance expressed by Return on Assets (ROA), Return on Equity (ROE) and Earnings per Share (EPS) and capital structure which was represented by Long Term Debts to Total Capitalization (LTDTC)/ (gearing), Short Term Debts to Total Assets (STD), Long Term Debts to Total Assets (LTDTA), Debt to Equity (TDE) and Interest cover (IC). The study confirmed statistically a significant negative relationship between profitability and capital structure using ROA however the remaining profitability measures ROE and EPS showed an insignificant relationship with capital structure. It is recommended that manufacturing companies in East Africa should strive to maintain low leverage so as to be profitable.
Determinants of Firms’ Working Capital Panel Evidence from Listed East African Manufacturing Companies
(International Journal of Business and Social Science, 2015) Marobhe, M.I
This study evaluates the determinants of working capital of manufacturing companies listed in East Africa Stock Exchanges. It uses Cash Conversion Cycle and Acid Test Ratios as the measures of working capital and Return on Assets (ROA), Firm Size, Firm Growth, Asset Utilization, Operating cash flows, Gearing and Real GDP Growth Rate as the determinants of working capital. This study employed the Fixed and Random Affect Multiple regression models using panel data in the period (2005-2014). The findings showed that ROA, Firm size and Firm Growth and Asset Utilization have a significant relationship with Cash Conversion Cycle using the Random Effect model. For Acid Test Ratio; Firm Size, Firm Growth, Gearing and Operating Cash Flows showed significant relationship with this ratio using the Fixed Effect model. So manufacturing companies are urged to maintain appropriate working capital levels by striking a balance between the factors that influence working capital as they have been established by this study
The Determinants of the Commercial Banks Profitability in Tanzania: Panel Evidence
(European Journal of Business and Management, 2015) Marobhe, M.I
This paper examines determinants of commercial banks' profitability in Tanzania with a particular focus on the internal and external factors. The study employs a set of panel secondary data from a sample of eighteen (18) commercial banks for the period (2000-2011) and uses the CAMEL model to investigate the financial performance level of the banking system. Furthermore, The study employs a multiple regression model to generate and specify the profitability function. The results confirm that capital adequacy, liquidity, asset quality and macro-economic factors are critical components in influencing profitability of the commercial banks.
Do Foreign Direct Investment Inflows Cause Economic Growth in Tanzania? The Granger Causality Test Approach
(Journal of Economics and Sustainable Development, 2015) Marobhe, M.I
This study assesses whether FDI inflows cause economic growth in Tanzania, it uses time series data covering a period (1970-2014). The study also tests for the co integration between FDI inflows and economic growth. Data pertaining FDI inflows and Gross Domestic Product (GDP) which is used as a measure of economic growth were obtained from International Monetary Fund (IMF) statistics. The Granger causality test was used to test for the causality between FDI inflows and GDP and co integration was tested using Johansen Co integration test. But the major prerequisite for conducting these two (2) tests is that the time series data must not have a unit root i.e. stationary, so the Augmented Dickey Fuller (ADF) test was carried out to check for the unit root. The results from ADF test showed that the time series data for both FDI inflows and GDP did not have a unit root hence making them appropriate for running the econometric tests needed. The results from Granger Causality Test concluded that FDI inflows do cause economic growth in Tanzania and not vice versa. Lastly, the Johansen Co integration Test results show that there is co integration or long term association between FDI inflows and economic growth measured by GDP. So it is recommended that Tanzania and other emerging economies should devise appropriate strategies such as efficient tax benefits to foreign investors, improve infrastructure and improve the skills of human capital to attract FDI.
Differences Between Firms from the Formal Sector and the Informal Sector in Terms of Growth: Empirical Evidence from Tanzania
(Journal of Entrepreneurship in Emerging Economies, 2017) Abdallah, Gorah. K.
Purpose – Small businesses growth has become an important area of study in the field of entrepreneurship. This paper aims to extend the inquiry by investigating whether there is a significant difference in growth between firms from the formal sector and the informal sector in the least developing countries (LDCs), particularly Tanzania. Design/methodology/approach – A survey strategy, as well as non-probability sampling, are used. The sampling included 50 formal and 61 informal small businesses from the furniture industry. Data collected were evaluated using chi-square and compounded annual growth rate (CAGR) techniques. Findings – The results indicate that firms from the formal sector do not grow faster than firms from the informal sector. on the contrary, our tests reveal that firms from the informal sector predominantly grow faster than firms from the formal sector. Research limitations/implications – The study was conducted in Tanzania which is just one of the 48 LDCs in the world. Second, the literature that is used predominantly applies to developed countries. Third, the fieldwork is dependent on the respondent’s perception. Finally, change of measurement scale from five to three is ought to have contributed to mixed findings. Practical implications – The overall implications are that external factors like inadequate regulatory tax systems may affect the growth of formal small businesses and thus influence market opportunities for informal small businesses. Further, internal factors like inefficiencies of workers from formal enterprises may affect growth and therefore create more opportunities for informal enterprises. Originality/value – Exploring differences between firms from the formal sector and the informal sector and the way five scales were aggregated into three scales in the methodology.
The Impact of Board Characteristics on the Financial Performance of Tanzanian Firms
(Emerald Publishing Limited, 2018-03-31) Assenga, Modest P
Purpose – This paper aims to investigate the impact of board characteristics on the financial performance of listed firms in Tanzania. Board characteristics, including outside directors, board size, CEO/Chair duality, gender diversity, board skill and foreign directors are addressed in the Tanzanian context by applying two corporate governance theories, namely, agency theory and resource dependence theory. Design/methodology/approach – The paper uses balanced panel data regression analysis on 80 firm-years observations (2006-2013) from annual reports, and semi-structured interviews were conducted with 12 key stakeholders. The study uses also a mixed methods approach and applies a convergent parallel design (Creswell and Plano Clark, 2011) to integrate quantitative and qualitative data. Findings – It was found that in terms of agency theory, while the findings support the separation of CEO/ Chairperson roles, they do not support outside directors-financial performance linkage. With regard to resource dependence theory, the findings suggest that gender diversity has a positive impact on financial performance. Furthermore, the findings do not support an association between financial performance and board size, PhD qualification and foreign directors. Practical implications – The study contributes to the understanding of board-performance link and provides academic evidence to policy makers in Tanzania for current and future governance reforms. Originality/value – The findings contribute to the literature by providing new and original insights that, within a developing setting, extend current understanding of the association between corporate governance and financial performance. This is predicated, also, on the use of uncommon mixed methods approach.
External Debts and Economic Growth in Tanzania
(Review of Integrative Business and Economics Research, 2019) Marobhe, M.I
This study examines the relationship between external debts and economic growth in Tanzania using time series data from (1970-to 2015). The ordinary least squares multiple regression analysis was conducted and the results revealed a significant positive relationship between external debt and economic growth. The Granger causality test was also carried out and the results provided evidence of causality between external debts and economic growth in Tanzania. Furthermore, results from the Johansen Co-integration test also provide evidence of the existence of long-run association/co-integration between external debt and economic growth. So, this study provides evidence that may help to reach a conclusion that external debts have aided to stimulate economic growth in Tanzania. However, caution must be taken to keep external debts at an optimal level to avoid debt overhang which can have detrimental effects on the economy.
A Review of Legal and Professional Framework Governing Public Sector Accounting and Reporting in Tanzania
(Doarj, International Journal of Business, Accounting and Management, DOA, 2019) Mbugi, Mashaka, S.
The paper attempts to review the legal and Professional framework Governing public sector that forms the basis of public sector accounting and reporting in the united republic of Tanzania. The International Public Sector Accounting Standards (IPSAS) issued standards that guide the preparation and presentation of public accounts; The URT (1977) constitution, the public Finance act of 2001 RE 2004 and the national Audit Act of 2008 forms the basic legal and professional document that guide preparation, accounting and reporting in the public sector. In addition, the paper articulates some of the major problems hindering their implementation and challenges including insincerity among the government officers, lack of professionals in the field and inadequate training of public accountants. The paper pointed out problems and challenges hindering the implantation of regulatory and professional framework as well as the way forward including provision of public awareness being major challenge on the implantation at the public sector level.
The Influence of Perceived Service Quality on Customers ‘Satisfaction with CRDB Sim-Banking Services In Mwanza
(Business Education Journal, 2019) Magoma, A
This study was conducted at CRDB Nyanza branch in Mwanza with the aim of measuring the level of customers’ satisfaction with CRDB SimBanking services. CRDB Nyanza branch was chosen because it is one among the financial institution providing SimBanking services and is located in Mwanza City center. A SERVQUAL model on the five dimensions of tangibility, reliability, responsiveness, assurance and empathy was used. Convenience sampling technique was used to sample 100 CRDB customers who are using CRDB SimBanking services. A self-administered SERVQUAL Model based questionnaire comprising of 22 items. Results were analyzed using SPSS. Quantitative analytical techniques of Cronbach Alpha, correlation and regression analysis were fully applied. The findings revealed that the strongest predictor of customer satisfaction was reliability (R2= 50.2) followed by assurance (R2=28.2), tangibility (R2= 25.4), Responsiveness (R2=12.7) and empathy (R2= (9.5). The study recommends that CRDB as an institution should improve their services by focusing on empathy by improving its customer care to its clients.
Economic Benefit of Savings and Credit Cooperative Societies on the Well-Being of the Individual: Evidence from Mbeya District, Tanzania
(Tanzania Institute of Accountancy, 2019-06) Kasambala, Momole
Savings and Credit Cooperative Societies (SACCOS) are registered organization that are formed to impart a saving spirit and extend loans to the members based on individual requirement and society rules and regulations in relation to their savings. They are societies that mobilize savings and speed up investment by allowing its members to access loans and invest for income generation and thereby contributing to poverty reduction
Trade, Market Size, Exchange Rate and Foreign Direct Investment: Co-Integration Analysis for East African Region
(Tanzania Institute of Accountancy, 2019-06) Mwanyamba, Isaya R.
The main objective of this paper is to examine the relationship between Trade, Market size, Exchange rate, and Foreign Direct Investment (FDI) in East African Economic Region. Many studies regarding FDI in this region focused only on individual countries; however, this study employs a different approach from the previous studies by treating East African Region as a single huge market
Climate Change Induced Extreme Flood Disaster in Bangladesh: Implications on People's Livelihoods in the Char Village and their Coping Mechanisms
(Progress in Disaster Science, 2020) Ryakitimbo, C.M
This study is an attempt to explore the impacts of floods on the livelihoods of people in Char Village, particularly on the income, occupation, and also explores their coping strategies. Data have been collected from three villages in Fulchari Upazila (sub-district). The study is predominantly qualitative. At the same time, quantitative data have also been used. As a result, a mixed approach has been followed to make this research meaningful, where respectively quantitative and qualitative data have been collected through a household survey, and focus group discussions (FGD), in-depth interviews, and ethnography observation. The results disclosed that floods make individuals more vulnerable, as such char land people face work loss, two-thirds of their earnings is decreased, which bounds their competences of preparedness, response, and recovery to posterior flood. In regard to this people deal with the situation by taking a sizable loans from various Organizations and loss of valuables assets. These outcomes would be of significant importance for the disaster policy-makers and civil society delegates.
Unboxing Entrepreneurial Motivations in Tanzania: Business-Related and Personal-Related Factors
(Journal of African Business, 2020) Abdallah, Gorah. K.
An increasing number of researches has explored entrepreneurial motivations in terms of either opportunity, necessity or a mix of these two, in emerging contexts such as informal economies of Least Developed Countries (LDCs). However, research has stopped short exploring entrepreneurial motivation beyond these three previously mentioned types. This study expands the distinction of opportunity, necessity and mixed motivations in LDCs by exploring additional underlying dimensions. Based on a literature review and a qualitative pre-study with experts on the spot, 170 informal entrepreneurs in Tanzania were surveyed with a questionnaire covering 30 items measuring entrepreneurial motivations. The analyses unbox entrepreneurial motivation in two new distinctive types: those motivations related to the business and those related to the person. On a general level, this study follows up on the increasing call for contextualization of entrepreneurship research. On a more granular level, this study contributes to the existing literature of entrepreneurial motivation, especially in LDCs, by providing detailed insights of two motivation types of informal entrepreneurs in their consideration of shifting to the formal sector. Moreover, detailed pertinent information of the informal entrepreneurs is described, providing a closer look at an LDC’s informal economy.

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