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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.
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.
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.
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.
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.
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.
Factors Inﬂuencing Bank Lending Behaviour in Tanzania A Case of Listed Banks in Tanzania
(African Journal of Accounting and Social Science Studies (AJASSS), 2022-06-30) Magoma, A
The study looked at bank and industry-specifc factors that inﬂuence listed commercial banks’ lending behaviour in Tanzania for the fve-year period from 2016 to 2020. Asset quality, capital adequacy, liquidity, and bank size were employed as bank-specifc factors, whereas Gross Domestic Product and inﬂation rate were used as industry-specifc factors. To establish the cause and eﬀect relationship between the response and explanatory variables, the study used an explanatory research design. Secondary data were extracted from seven listed commercial banks’ audited fnancial statements for a fveyear period, totalling 35 data points. After performing pre-regression analysis (multicollinearity test), correlation and linear analysis were conducted. From 2016 to 2020, the study discovered that capital adequacy and bank size have the biggest impact on Tanzanian listed commercial banks’ lending behaviour. At 5 per cent level, other explanatory variables such as asset quality, liquidity, GDP growth rate, and inﬂation rate were insignifcant. Thus, the study concludes that capital adequacy and bank size inﬂuence the lending behaviour of the listed commercial banks in Tanzania from 2016 to 2020. The research was limited to seven Tanzanian listed commercial banks from 2016 to 2020. Regardless of their capital adequacy or size, the banks should lend cautiously. This is because, in today’s intensely competitive business, if larger banks with massive capital lend irresponsibly, they are likely to collapse. Finally, the study results demonstrated that the bank size and capital adequacy inﬂuence the lending behaviour of the listed commercial banks’ in Tanzania
Financial Literacy, Investment and Savings Decisions Among Government Institutions’ Workers in Mwanza, Tanzania
(African Journal of Applied Research, 2022-03-08) Magoma, A
Purpose: The study focused on examining how financial literacy influences the savings and investment decisions of government workers in Mwanza Tanzania. Design/methodology/approach: A cross-sectional design approach was adopted and specifically a multistage sampling technique was fully applied to select 271 government workers from different government institutions in Mwanza-Tanzania. Primary data was collected through the use of questionnaires and analysis of the sourced data was done through a logistic regression model which was binary in nature since this study had two dependent variables namely savings and investment. Findings: Findings of this study reveals that both financial attitude and financial knowledge were significant at a 5% level and had an impact on making sound investment and savings decisions among government workers. Research limitation/Implications: The study used only a selected sample of government employees in Mwanza. Further studies should focus on including other non-governmental employees and the scope should be broadened to have more robust results. Practical implications: From the study findings it is clear that most financially literate government workers stand a better chance of making prudent decisions when it comes to savings and investments which ultimately makes them better off in their financial and economic well being. Social Implications: Financial intermediaries and policymakers should devise a platform suited enough to equip government workers with the knowledge to make prudent savings and investment decisions. Originality / Value: The study revealed that attitude and knowledge are the determinants of savings and investment decisions of government employees.
Financial Performance of Listed Commercial Banks in Tanzania: A Camel Model Approach
(African Journal of Applied Research, 2022-03-16) Magoma, A
Purpose: The study focused on analysing the financial performance of seven listed commercial banks at the Dar es Salaam Stock of exchange (DSE) for five years from 2016 to 2020. CAMEL model was utilised to fully assess the financial strength of these listed banks. CAMEL is an acronym that stands for capital adequacy, asset quality, management efficiency, earning quality and liquidity Design/Methodology/Approach: Explanatory research design was applied fully to establish the cause and effect relationship that exists between the response variable (banks performance) and explanatory variables (capital adequacy, asset quality, management efficiency, earning quality and liquidity) of commercial banks listed at DSE in Tanzania. Secondary data were sourced from audited financial statements and annual reports. Pre regression analysis was done (multicollinearity test and Durbin-Watson test). Last but not least correlation and linear regression analysis were done. Findings: The findings reveal that commercial banks listed at the DSE in Tanzania are mostly affected by management efficiency and capital adequacy Research Limitations/Implications: This study focused on using CAMEL analysis on only seven listed commercial banks at DSE in Tanzania from 2016 up to 2020. Practical implications: The study demonstrated the use of CAMEL analysis in measuring the listed commercial banks' performance in Tanzania. Thus this model can be used as the benchmark in deciding to yield better performance results for the listed commercial banks in Tanzania. Originality/ Value: The study demonstrated the use of CAMEL analysis in measuring the listed commercial banks' performance in Tanzania
High frequency volatility spillover between oil and non‑energy commodities during crisis and tranquil periods
(SN Business & Economics, 2023-03-29) Marobhe, Isaack,M; Kansheba, Peter,J.M
In this article, we scrutinize volatility spillover between oil and individual nonenergy commodities during crisis and non-crisis periods. We use high-frequency data to capture the effects of both the global financial crisis (2008) and the COVID-19 pandemic between 2008 and 2022. To this end, we utilize wavelet coherence analysis to diagnose the magnitudes of dynamic co-movements and lead-lag effects between commodities. Our results provide evidence of strong coherence between oil and the majority of individual non-energy commodities during both crises. Precious metals were generally found to exhibit heightened levels of co-movement with oil as opposed to other non-energy commodities. On the other hand, weak co-movements were found between oil and a few commodities, namely soy, wheat, zinc, and tin. The lead-lag effects of oil on agricultural commodities, base metals, and precious metals were evident, especially during crisis periods. However, aluminum and precious metals, especially gold, silver, and palladium, also had a lead-lag effect on oil at different points in time, including during the pandemic. We further utilize dynamic frequency-domain connectedness for capturing pairwise volatility spillover indices, with the results providing evidence of heightened volatility spillovers during turbulent times. Our findings have significant implications for retail investors, portfolio managers, and policymakers.

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