Nexus between Covid-19 pandemic, liquidity and profitability of listed banks in Tanzania
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Date
2021
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
The Second Business and Economic Development Conference
Abstract
Abstract
This study intends to explore the relationship between COVID 19 pandemic, liquidity and profitability of
selected listed banks at the Dar es Salaam Stock of exchange (DSE) in Tanzania. Causal comparative design
(Ex post Facto Design) was fully applied in order to compare the profitability and liquidity of the listed
banks at the DSE pre-COVID 19 period of quarter 1 and 2 of 2019 financial statements and post-COVID-19
period of quarter 1 and 2 of 2020. This was done to examine the impact of COVID-19 pandemic on
liquidity and profitability of purposively selected two (2) listed banks at DSE. The statistical test of
parameter estimates was conducted by Wilcoxon statistical test tool from SPSS-20 version where Liquidity
position of the selected banks were analyzed based on comparison of cash position through the liquidity
ratios of cash ratio and operating cash flow ratio in the pre-COVID-19 period of quarter 1 and 2 of 2019
financial statements and post-COVID-19 period of quarter 1 and 2 of 2020 and return of equity (ROE) was
used as the measure of performance of the mentioned banks. The findings reveal that COVID-19 pandemic
has significantly affected the liquidity and profitability position of two selected banks at DSE in Tanzania at
5% level o significance though the effect was not massive.
Description
Keywords
: COVID-19 pandemic, liquidity, profitability, ROE
Citation
Magoma, A., & Mbwambo, H. (2021). Nexus Between Covid-19 Pandemic, Liquidity and Profitability of Listed Banks in Tanzania.