dc.description.abstract |
Tanzania, has invested efforts to establish and strengthen the stock exchange since the
early 1980s. This was aimed at developing a functioning capital market for
mobilization and allocation of long-term capital to the private sector. This was
expected to bring about increased investment activities, efficiency in firm operations
and a vibrant economy. The presence of a well-functioning and strong stock exchange
has been associated with firm performance across the world, but in Tanzania the link
has not been well documented. The study aimed to analyse the impact of listing on
performance of firms listed, examine the influence of firm-specific factors on
performance of firms listed, establish the link existing between non-financial
information disclosure and performance of firms listed, and determine the external
factors influencing performance of firms listed. The study employed a mixed methods
research approach with an explanatory sequential design. The researcher applied a
census approach for all 21 local listed and trading firms and purposive sampling
technique to select a total 24 key informant interviewees. Quantitative secondary
panel data ranging from 2006 to 2019 were obtained from Capital Market and
Security Authority, Dar es Salaam Stock exchange, Bank of Tanzania, and National
Bureau of Statistics. Quantitative data were analysed using measures of central
tendency and of dispersion, a Matched Pairs Approach, trend analysis and multiple
regression with random effect, fixed effect model and Generalized Least Square.
Qualitative data were analysed by the use of thematic analysis technique. The study
found that the key determinants under investigation significantly influenced
performance of listed firms. The study concluded that for listed firms to perform well
they should have strategies on the key study determinants since there are benefits that
firms get when they are listed in stock exchange in terms of financial and nonfinancial performance. Theoretically, the study extended knowledge by refuting
assumptions drawn from the agency theory on the impact of agency cost on firm
performance. The study also confirmed the applicability and usefulness of resourcesbased theory, legitimacy theory, stakeholder theory and open system theory in the
context of listed firms’ performance. |
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