Browsing by Author "Mori, Neema G"

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    Demographic Characteristics of Credit Officers and Risk Management in MFIs in Tanzania
    (Practical Action Publishing, 2019) Richard, Evelyn M; Mori, Neema G; Swai, Martha
    Purpose: This article examines the effect of demographic features of credit officers on risk management in MFIs Methodology: A dataset of 200 credit officers from 20 MFIs in Tanzania was used. Descriptive and econometric models were used for analysis. Findings: Work experience, age and education level of credit officers influence credit risk management. Based on the information asymmetry theory the study observed that the gender, marital status and the location of MFIs do not influence credit risk management. Practical implications: MFIs should consider the demographic profile of their credit officers and employ educated, skilled and experienced personnel for screening and monitoring the use of the loan to reduce the risk of the loan not being repaid. Originality: The study contributes to the theory by showing that experience and education matter in terms of organizations' ability to reduce information asymmetric problems, which in turn helps risk management.
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    The Effect of Debtors on Performance of Small and Medium Enterprises
    (2018) Richard, Evelyn M; Mori, Neema G
    The paper assesses effect of credit sales on performance of small and medium enterprises (SMEs) in Tanzania using the credit risk management perspective. Asymmetric information and trade-off theory of liquidity guided the study whereby a dataset of 6,134 Tanzanian SMEs was used. Descriptive and regression methods were used as analyses techniques. Results confirm that majority of SMEs sell on credit (54%). Despite efforts they put into managing their debtors, 26 percent of them default. The results further showed that SMEs incur relatively high costs when managing debtors, an aspect, which hampers their performance. Costs incurred relate to financing, administration and moral hazards problems. The paper contributes to asymmetric information and tradeoff of liquidity theories by showing how the relationship between SMEs and debtors can be hampered by ex-post asymmetric information whereby debtors decide to act in their own interests but against seller's interests, a pattern, which contravenes terms of their contracts. The study highlights main challenges faced by SMEs while managing debtors. Bad debts put pressure on SMEs’ cash flow thereby limiting growth of their businesses. Education level was seen to be important when managing debtors.