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

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Airlines and climate policy uncertainty: Are the sector’s stocks soaring or stalling?
(Elsevier, 2024-01-02) Marobhe, Isaack, M; Kansheba, Mukiza, J
The present study examines the impact of uncertainties around climate policy on the stock returns of eight US airlines between 2007 and 2023. To examine how climate policies impact daily airline stock volatility through the long-run component of total volatility, the monthly climate policy uncertainty index is utilized. Using full sample and out-of-sample estimations, we investigate the problem using the Generalized Autoregressive Conditional Heteroscedasticity-Mixed Data Sampling model. To further assess forecasting accuracy, the Diebold and Mariano as well as Superior Predictive Ability methodologies are applied. According to the full-sample estimation results, just two airlines showed a significant relationship with climate policy uncertainty. Meanwhile, six airlines including three of the “big four” airlines were significantly affected by the former, according to the out of-sample data. Forecasting results indicate that the climate policy uncertainty-based model outperforms the other models in projecting airline returns. The results have significant theoretical and applied ramifications for comprehending sectoral asset valuations in the context of uncertain climate policy.
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.
Bearish Conditions and Volatility Persistence During COVID-19 can Microchip Stocks Weather the Storm?
(Review of Behavioral Finance, 2022) Marobhe, M.I; Dickson, P
Purpose The purpose of this article is to examine the impact of panic and hysteria news on the volatility of microchip stocks during Covid-19. Design/methodology/approach The authors use the P-GARCH (1,1) and random effects regression to model/examine the impact of Covid-19 panic and hysteria news on the overall microchip sector and individual firms. They further utilize the SVAR model to examine volatility spill-over from the microchip sector to the automobile and main technology sectors. Their time frame ranges from 6th January 2020 to 30th June 2021 to capture the effects of both waves of Covid-19. Findings The study results firstly reveal that Covid-19 panic and hysteria news have tremendous potential to model the volatility of microchip sector stock thus confirming the information discovery hypothesis. The authors secondly demonstrate the influence of Covid-19 cases, deaths and policy stringency on stock returns of individual microchip companies in different countries. Finally the authors confirm the presence of volatility spill-over from the microchip sector to other technology sectors. Research limitations/implications The authors provide evidence to support the profundity of bad news in predicting stock behavior. The study results depict how Covid-19 has affected microchip stocks so that policy initiatives can be taken to protect the industry. The presence of volatility spill-over signifies the importance of diversifying portfolios by mixing technology and non-technology stocks. Originality/value The research strand on Covid-19 and individual sectoral stocks has received limited scholarly attention despite unparalleled effects of the pandemic on different sectors.
Board Characteristics and Bank Performance: Evidence from Selected African Countries
(African Journal of Accounting and Social Science Studies (AJASS), 2023-12) Mwakitalima, Hekima; Mnzava, Bernard
The study is aimed at examining board characteristics and bank performance evidence from selected African countries namely Tanzania, South Africa, Egypt, and Nigeria.26 banks with coverage of 10 years (2011-2020), were covered by the study. The study employed a purposive sampling technique to obtain the 26 banks listed in the Dar es Salam Stock Exchange (DSE), Johannesburg Stock Exchange (JSE), Egypt Stock Exchange (EGX), and Nigeria Stock Exchange (NGX). Four countries were selected to represent the whole of Africa, whereby eastern Africa was represented by Tanzania, western Africa was represented by Nigeria, northern Africa was represented by Egypt and southern Africa was represented by South Africa. The results of the study show that gender diversity was statistically significant and had a negative impact on bank performance; skills diversity and independence diversity were found to be statistically significant and had a positive relationship with bank performance while nationality diversity and age diversity seemed to be statistically insignificant.
Business Networks, Regulation and Local Content in Tanzania's Oil and Gas Sector
(The Extractive Industries and Society, 2021) Juma, H
Free market advocates doubt the ability of industrial regulation to make oil and gas companies adopt local content practices. This study explores this position by assessing the effects of industrial regulations on business networks. Using data collected from a survey of 191 senior practitioners in the oil and gas industry in Tanzania and analysed using the PROCESS tool for moderating effect, the study shows that the continuity, complexity, cooperation, socialisation and formalisation of business networks all have significant positive effects on local content practice. At the same time, however, the conflict has a significant negative effect on local content practice. The findings indicate that the interactions of industrial regulation with continuity, complexity, conflict and cooperation significantly reduce local content practices, while for interdependence, informality, adaptation, socialisation and formalisation the results are not significant. As such, this study implies that host countries should not exclusively depend on industrial regulation to achieve national objectives around local content. Policy formulation should take into account the business interconnectedness of oil and gas companies because local content practices are not only affected by industrial regulation but also by companies’ respective business networks.
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.
Credit Risk Management Strategies Reviews and Performance of Commercial Banks in Tanzania
(Tanzania Institute of Accountancy, 2023-06) Majondo, Safari; Mataba, Lucas; Mmari, Goodluck
The Government of Tanzania has undergone various reviews on credit risk management strategies at different periods of time including 2008 and 2014 for the purpose of ensuring bank stability and good performance. Despite all these reviews, performance and stability of most commercial banks in Tanzania has become a challenge. This study, therefore, assessed empirically the level at which commercial banks in Tanzania implement new credit risk management strategies and then whether the reviews made on these strategies reduced or increased the non-performing loans (NPL) and profits respectively. The study applied a cross sectional design. Purposive sampling technique was used to obtain a sample size of 120 respondents based on their position and status. Primary data were collected using a self-administered questionnaire while secondary data were collected using audited financial statements. The primary data were analysed descriptively and inferentially by computing descriptive statistics and using a multiple linear regression model respectively. Results showed that there was high implementation on reviewed credit risk management strategies by commercial banks. Findings from regression analysis showed that risk control and risk monitoring strategies had negative and positive significant effects on NPL and return on equity (ROE) respectively. More efforts should be put in place to ensure that all commercial banks continuously implement reviewed credit risk management strategies, especially risk control and monitoring strategies. The limitation of this study is that it concentrated more on commercial banks and ignored other financial institutions which were also affected by regulatory reviews of 2014. Thus, similar studies should be conducted using other regulatory requirements reviews not captured in this study.
Critical Factors for Success of Small-Enterprises in Tanzania: A Case of Vegetables and Fruits Vendors in Five Regions
(2022-10) Abdallah, Gorah. K.
Institutional Theory has become important concept of interest in the field of entrepreneurship. This paper examines the critical factors contributing to the success of small business enterprises of supplying vegetables and fruits in a developing country (Tanzania). Data were collected from five regions in Tanzania and evaluated using Multiple Regression analysis. The results show that the independent variables (i.e. customer services, marketing accessibility, reputation of personal branding, reliable services, and government support services) contribute to the success of small enterprises of vendors for vegetables and fruits in Tanzania
Cryptocurrency as a Safe Haven for Investment Portfolios Amid COVID-19 Panic Cases of Bitcoin, Ethereum and Litecoin
(China Finance Review International, 2021) Marobhe, M.I
Purpose – This article examines the susceptibility of cryptocurrencies to coronavirus disease 2019 (COVID-19) induced panic in comparison with major stock indices. Design/methodology/approach – The author employs the Bayesian structural vector autoregression to examine the phenomenon in Bitcoin, Ethereum and Litecoin from 2nd January 2020 to 30th June 2021. A similar analysis is conducted for major stock indices, namely S&P 500, FTSE 100 and SSE Composite for comparison purposes. Findings – The results suggest that cryptocurrencies returns suffered immensely in the early days of the COVID-19 outbreak following declarations of the disease as a global health emergency and eventually a pandemic in March 2020. However, the returns for all three cryptocurrencies recovered by April 2020 and remained resistant to further COVID-19 panic shocks. The results are dissimilar to those of S&P 500, FTSE 100 and SSE Composite values which were vulnerable to COVID-19 panic throughout the timeframe to June 2021. The results further reveal the strong predictive power of Bitcoin on the prices of other cryptocurrencies. Research limitations/implications – The article provides evidence to support the cryptocurrency as a safe haven during the COVID-19 school of thought given their resistance to subsequent shocks during COVID-19. Thus, the author stresses the need for diversification of investment portfolios by including cryptocurrencies given their uniqueness and resistance to shocks during crises. Originality/value – The author makes use of the novel coronavirus panic index to examine the magnitude of shocks in prices of cryptocurrencies during COVID-19.
Determinants of Corporate Environmental Disclosures: A case of selected Listed Manufacturing Firms in Tanzania
(African Journal of Accounting and Social Science Studies (AJASSS), 2022-06) Magoma, A;
This study looks into the factors that inﬂuence corporate environmental disclosure on the Tanzanian listed manufacturing frms. The study employs legitimacy theory as a theoretical foundation. For this study, the explanatory variables were proftability, frm size, fnancial leverage, and board size. From 2013 to 2020, data were extracted from the annual reports of fve listed manufacturing frms for eight years totalling 40 data points. A regression analysis model was used to analyse data from all of the listed manufacturing frms. According to legitimacy theory, proftability and board size are signifcant parameters that positively inﬂuence environmental disclosure. Other factors, such as fnancial leverage and frm size, appear to positively inﬂuence environmental disclosure, though the impact is insignifcant. The study recommends that listed manufacturing frms should improve their levels of environmental disclosure, participate in environmental activities, and ensure that more environmental information is disclosed for all users to assess. The study recommends for public traded manufacturing frms to improve their levels of environmental disclosure, participate in environmental activities, and ensure that more environmental information is disclosed for all users to access.
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.
The Development of Institutional Repositories in East Africa Countries: A Comparative Analysis of Tanzania, Kenya and Uganda
(IASSIST Quarterly, 2021) Mwalubanda, J.M
This paper aims at examining the growth of IR in the East African region (Tanzania, Kenya, and Uganda)from 2010-2020. This study adopted a content analysis methodology. Data for this study was extracted from OpenDOAR (Directory of Open Access Repository), ROAR (Registry of Open Access Repository) and repository websites to identify the language used, subject covered, software used and types of content that are found in East African repositories. The findings of this study reveal that East African region has a total number of 66 repositories, which are registered in OpenDOAR. Kenya is a leading country in the region by having 42 repositories, followed by Tanzania with 14 repositories and Uganda with 10 repositories. The findings show that there is an increase in number of repositories in the region from 4 in 2010 to 66 in 2020. However, the growth is low compared to other parts of the world particularly, Europe, Asia, and America. The study shows the need for librarians, researchers, stakeholders, and East African governments to come together to address the challenges that hinder the growth of repositories in the region. Likewise, mandate policy formulation, training, financial support, OA awareness and technical support are needed in order to overcome those challenges.
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.
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.
Does Internal Audit Functions Effectiveness influence External Auditors’ Reliance on Internal Audit Work?
(TIA, 2022-12-31) Mapuli, John S.
This study examines the influence of internal audit function effectiveness on the extent to which external auditors rely on internal audit function work. A sample of 100 senior external auditors of Tanzanian-listed companies was purposively selected to provide the data. A questionnaire was employed to collect the data which were then analysed using a Partial Least Square Structural Equation Modelling. The result shows that internal audit function effectiveness has a significant positive effect on the extent of external auditors’ reliance on internal audit function work. This suggests that external auditors adjust their audit efforts in response to the effectiveness of the internal audit function, consistent with the audit risk model. The result contributes a new dimension, the internal audit function effectiveness and reliance, to the audit risk model. The result has practical implications for clients and external auditors looking to obtain a cost-effective audit of financial statements, by recognising the impact of internal audit functions on external audits.
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
Effect of Audit Opinions and Entity's Characteristics on Audit Committees' Effectiveness in Government Entities in Tanzania
(TIA, 2022-12-01) Mwombeki, Frank A.
This paper examines the influence of audit opinions and entity characteristics on audit committee effectiveness (ACE) in government entities. Using a large sample of government entities in Tanzania as a reference, the paper adopted the resource dependency theory to explain the theme. Data were collected from 230 government entities' financial statements and Controller and Auditor General (CAG) reports from 2014/15 to 2019/20. The ordinary least square (OLS) technique was utilised to obtain regression results. The results show that disclaimer opinion negatively affects Audit Committee (AC) effectiveness. Qualified Opinion and Adverse Opinion were found to be insignificant though they had a negative relationship the same as disclaimer opinion. Specifically, unqualified opinion is a significant positive aspect related to AC effectiveness. Furthermore, entity structure, size, and location significantly and positively influenced AC effectiveness. On the other hand, firm age had statistically insignificant effect. The study findings imply that an entity should have experienced/competent audit committee members in accountancy. Also, the audit committee must be well-composed and have sufficient resources to obtain a clean report. Therefore, the paper recommends inviting the national audit office to every audit committee meeting. The board and management should emphasise on the budget for the training AC members. Further, the President's Office - TAMISEMI and the ministry responsible for finance should insist on the establishment and activeness of AC in all government entities in Tanzania. As per the author's knowledge, this paper adds new empirical knowledge by utilising CAG reports to link the effectiveness of AC with audit opinions and entity characteristics in Tanzania.
The Effects of Board Structure on the Firm Financial Performance of Tanzanian Listed Firms
(Business Education Journal, 2021-07) Assenga, Modest P
This paper examines the effects of the board structure variables of board size, outside directors and CEO duality on firm financial performance of the listed firms in Tanzania. This study uses a sample of listed Tanzanian firms from 2006 to 2018 and uses balanced panel data Ordinary Least Square (OLS) regression analysis of 120 firms-year observations obtained from the firms’ audited annual reports and the OSIRIS database. Furthermore, in order to address the endogeneity problem, this study uses the Random effect regression model and the Two Stage Least Square (2SLS) regression model as a robustness test. The results show that the smaller the board size with a higher proportion of outside directors and no CEO duality, the greater the firm’s financial performance. This study contributes to the understanding of the relationship between board structure and financial performance and it provides academic evidence to Tanzanian policy makers of current and future Corporate Governance reforms. First, dissimilar to most previous Corporate Governance literature that relates to developed countries, this study examines the effects of the board structure variables of board size, outside directors and CEO duality in Tanzania which is a developing country where very few Corporate Governance research studies have been conducted. It addresses the endogeneity problems between board structure and firm financial performance using Random effect regression and Two Stage Least Square (2SLS) regression models

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