Financial Leverage and Financial Performance of Savings and Credit Co-operative Societiesin Tanzania

Towo, Nathaniel

doi:10.1177/09730052221077846

Cited by 5 publications

(5 citation statements)

References 50 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…CEO duality p < 97 des not significant impact on firm performance. these findings are consistent with several prior studies [59]. Elsayed (2007) finds that CEO duality has no impact on corporate performance, measured as ROA and Tobin's Q, for a sample of publicly listed firms in Egypt from 2000 to 2004.…”

Section: Corporate Governance Financial Leverage Impact On Firm Perfo...supporting

confidence: 91%

“…ROA profitability return on assets p < 0.03, INDR industry return p < 0.09, F. SIZE firm size p < 0.07, F.AGE firm age p < 0.03, EXPCAP capital investment p < 0.06, C.R current ratio p < 0.03, MKT market to book value p < 0.06, are positively associated with financial leverage NCF cash flow to total assets p < 0.03, FXR fixed assets ratio p < 0.07 negatively associated with firm performance. Financial leverage coefficient and p < 0.06 negatively associated with firm performance [59]. This finding supports our hypothesis that there is positive relationship between financial leverage and firm performance.…”

Section: Corporate Governance Financial Leverage Impact On Firm Perfo...supporting

confidence: 87%

“…Savings and credit co-operative societies in Tanzania were investigated for the relationship of financial leverage and firms' performance; it was found that both are negatively and significantly associated [59]. The same outcomes are shown by Nigerian goods firms too, which revealed firm performance by cash value added of quoted industrial good firms and presented a negative relationship with long term debt ratio while having positive links with short term debt ratio [50].…”

Section: Financial Leverage and Financial Performancementioning

confidence: 99%

See 2 more Smart Citations

Does Financial Leverage Mediates Corporate Governance and Firm Performance?

et al. 2022

View full text Add to dashboard Cite

This research aims to explore the impact of corporate governance on firm performance while considering financial leverage as a mediating variable. This study was conducted in the non-financial sector of Pakistan, and data was collected from financial statements. A sample of 150 firms was selected from those registered on the Pakistan Stock Exchange during the period of 2011–2021. Results show that corporate governance is associated with firm performance. Board size has a positive relationship with firm performance; as board size increases, the performance of the firm also increases. Board independence is positively and significantly associated with firm performance. Audit committee size is also positively associated with firm performance. Female directors on the board are also associated with positive firm performance. Board independence, board size, audit committee, and female directorship were positively associated with financial leverage. Corporate governance protects the interest of shareholders and transfers risk from shareholders to debt holders. Results show that corporate governance enhances the financial distress cost by enhancing the debt ratio in the financial leverage. Financial leverage partially mediates the board size and board independence with firm performance, while audit committee size and female directorship relationship with firm performance are fully mediated.

show abstract

Section: Corporate Governance Financial Leverage Impact On Firm Perfo...supporting

confidence: 91%

Section: Corporate Governance Financial Leverage Impact On Firm Perfo...supporting

confidence: 87%

Section: Financial Leverage and Financial Performancementioning

confidence: 99%

See 1 more Smart Citation

Does Financial Leverage Mediates Corporate Governance and Firm Performance?

et al. 2022

View full text Add to dashboard Cite

show abstract

“…It measures the ability of the SACCOS to provide loans using the deposits and meet members' withdrawal requirements at the same time. The capital to asset ratio (CAR) is computed as members' equity to total assets (Towo, 2022). In this study, members' equity included members' share capital, reserves, and retained earnings.…”

Section: Methodsmentioning

confidence: 99%

Relationship lending and financial performance of Savings and Credit Co-operative Societies in Tanzania

Towo

Ishengoma

Mori

2022

AJEMS

Self Cite

View full text Add to dashboard Cite

PurposeThis paper examines the influence of relationship lending on the financial performance of Savings and Credit Co-operative Societies (SACCOS) in Tanzania.Design/methodology/approachA panel data of 460 observations representing 115 SACCOS from Tanzania was used. Descriptive statistics and panel regression models were employed to analyse the data.FindingsThe results show that the duration of the relationship is negatively and significantly related to SACCOS financial performance, substantiating the relationship lending theories. The number of relationships has an insignificant effect on financial performance.Research limitations/implicationsThe study focused on the duration and the number of relationships as aspects of relationship lending. The paper is limited in the sense that other aspects of relationship lending such as the concentration of relationships that could affect financial performance are not included in this study. The results apply to SACCOS and not to other microfinance institutions with strong bargaining power.Originality/valueThis study positions relationship lending in the SACCOS context where the market for the wholesale loan is less competitive.

show abstract

“…According to research conducted in Tanzania, capital structure has a significant and negative correlation with a company's performance [62]. A study on Nigerian oil companies found a negative correlation between capital structure and performance, as measured by return on equity (ROE), and it recommended increasing debt financing to protect shareholders' stakes in the companies [63].…”

Section: Capital Structure and Company Performancementioning

confidence: 99%

Determinant Factors of Corporate Governance on Company Performance: Mediating Role of Capital Structure

Ria

2023

Sustainability

View full text Add to dashboard Cite

The purpose of this study is to investigate the role of capital structure as mediating variable in the relationship between corporate governance and company performance. Data for this study was obtained from financial statements and was done in Indonesia’s non-financial sector. From among the companies listed on the Indonesia Stock Exchange between 2017 and 2021, 15 companies were chosen as a sample. Findings show that corporate governance (board independence, board size, and audit committee) were significantly associated with capital structure and company performance, but gender diversity has an insignificant relationship with capital structure and company performance. Moreover, this research found that capital structure is not able to mediate the effect of corporate governance (board independence, board size, audit committee, and gender diversity) on company performance.

show abstract

Financial Leverage and Financial Performance of Savings and Credit Co-operative Societiesin Tanzania

Cited by 5 publications

References 50 publications

Does Financial Leverage Mediates Corporate Governance and Firm Performance?

Does Financial Leverage Mediates Corporate Governance and Firm Performance?

Relationship lending and financial performance of Savings and Credit Co-operative Societies in Tanzania

Determinant Factors of Corporate Governance on Company Performance: Mediating Role of Capital Structure

Contact Info

Product

Resources

About