Faculty of Commerce, Law and Management (ETDs)

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    Financial literacy as a determinant of financial inclusion in Tanzania
    (2022) Mmari, Peter Joseph
    Financial inclusion is considered to be an effective tool to reduce access and usage barriers in the banking sector. Despite its effectiveness, its benefits have not been fully realized by Tanzanians due to both supply and demand side limiting factors. Tanzania records a high level of financial exclusion in the banking sub-sector because 83 per cent of her adult population is un-banked. The high level of exclusion in banking though poses challenges to Tanzanians it is also a global concern and for that it continues to attract more research for effective interventions, (Demirgüç-Kunt, Klapper, Singer, Ansar, & Hess, 2018). The empirical literature on financial inclusion suggests that financial exclusion in the banking sector is explained by various demand-side factors, including the high level of financial illiteracy in societies, (Chikalipah, 2017). In the context of Tanzania, information regarding the role of financial literacy in influencing financial inclusion in the banking sector is limited. In addition, the moderating effect of demographic variables on the ability of financial literacy to influence financial inclusion remains to be unknown and hence the need for this research. In efforts to address this gap, this study uses the theories of Planned Behaviour (TPB), (Ajzen, 1991) and the Technology Acceptance Model (TAM),(Davis, 1989; Venkatesh & Davis, 2000) to develop a measurement model for financial literacy and digital financial literacy as constructs hypothesized to influence individual’s financial inclusion. Following a positivist and quantitative research approach, this study employs the Structural Equation Modelling technique by using Smart Partial Least Square 3, software to examine the causal relationship between financial literacy and digital financial literacy with financial inclusion. Data for the study were collected through a cross-sectional survey conducted on a sample of 440 respondents from eight districts in Tanzania.
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    Stock market effects of the 2015 presidential election in Tanzania
    (2021) Masima, Nyangwe Job
    In this study we analyse for the first time the impact of the 2015 presidential elections on the returns of the Dar Es Salaam Stock Market. A wide range of studies have been conducted on the impact of presidential elections on stock market returns of many countries. Most of these studies have been piloted in developed nations, very little in Africa and no known study in Tanzania. This study provides new knowledge on these fronts for the finance literature in Africa, developing markets and Tanzania. The study was based on event study methodology and employed the market model to estimate the expected return, consequently leading to the computation of abnormal returns. The event days were the 12th July 2015 (nomination day) and 29th October 2015 (election day). Furthermore, a robustness of event study was conducted by testing for structural breaks to determine exogenous dates to confirm event dates assumed at the beginning of the study. A variety of GARCH models were further used to test for the effect of the presidential elections on the returns of the DSE. The graphic representation of the Dar Es Salaam stock market from the period 4th January 2010 to 30th December 2019 indicated an increase in volatility clustering over time compared to period before 2014; highly volatile markets lower investor confidence. Different patterns of abnormal returns were observed for both nomination and election period. The NP10 test indicated negative averages during the break and post break period while positive returns were observed during the pre break period. It is not unusual for this to happen during a period of structural break, but that it continues after, implies that the market is still reeling of the uncertainties generated by the Presidential election activities. The empirical findings showed that the 2015 presidential elections had an impact and sticky effect on the returns of the Dar Es Salaam Stock Market. The study recommends that investors investing on the Dar Es Salaam stock market should carefully plan and carry out investments decisions during and after the period of general elections as returns could be affected either positively or negatively during this period