Browsing by Author "Richard, Evelyn M"

Now showing 1 - 6 of 6
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    Account Receivable Management Practices of SMEs in Tanzania: A Qualitative Approach
    (BMR, 2019) Richard, Evelyn M; Kabala, Benedicto
    This paper focused on establishing how micro, small and medium enterprises (MSMEs) operating in Tanzania manage debtors. The study used an exploratory approach and was informed by the asymmetric information theory. Saturation point was reached in the fifteenth case. A content analysis was used for the data analysis. The findings show that MSMEs are aware of the importance of managing debtors; they use different means to screen prospective debtors and follow them so that they get paid on time.The same methods are used to monitor and control bad debts. Informal networking, calling debtors, and visiting their residencesor workplaces are mostly used to reduce asymmetric information problems. The paper contributes to the theory by stressing the importance of searching for relevant information while managing debtors.The results further depict the formal credit risk management process and contribute to the literature on the actual methods used by MSMEs while managing debtors. Results suggest that less costly methods of monitoring debtors should be sought and used.
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    Board Gender Diversity: Challenges and Implications for Corporations in East African Community
    (Journal of African Business, 2019) Richard, Evelyn M; Mori, Neema, G
    East African Community’s (EAC) corporations are required to follow a regional treaty of mainstreaming gender equality. This article discusses challenges encountered by corporate boards of the EAC’s corporations when adding women. Agency and resource dependence theories led the study, while a review of the literature was the methodology. We discuss the benefits of diverse boards and challenges faced when developing this diversity. We show how power distance, masculinity, and certainty avoidance prevent women from corporate boards. Furthermore, we discuss how social orientation and business environment impact women’s participation. The article discusses various strategies to be considered for increasing diversity.
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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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    Determinants of Capital Structure of Oil and Gas Companies in Tanzania
    (2019) Richard, Evelyn M; Chalu, Henry; Ngohelo, Angela H
    This study examined the determinants of capital structure of oil and gas companies in Tanzania. Based on two theories - Pecking Order and Trade-Off - the study tested tangibility, firm size, growth, profitability and tax shield. To test these variables, secondary data of eight oil and gas firms operating from 2008 to 2014 was used. Using multiple regression analysis, the study found that the effect of the independent variables on leverage differs with the level of operations. When all firms are considered, the size of the firm, profitability, tax effect and growth rate tend to be negatively but insignificantly related with the capital structure. Tangibility has an insignificant positive relationship with capital structure. When considering only firms that are at the selling level, profitability, tangibility and growth variables significantly but negatively relate with capital structure. Tax significantly affects the capital structure positively while size has no effect. The study contributes to the Pecking Order Theory that firms tend to use for internally generated funds before using external sources. It challenges the Trade-Off Theory which suggests that there is a positive relationship between tangible assets and leverage. Practically, the study suggests that determining factors differ along the project life cycle. Their effect on the capital structure may not be significant at the initial and developmental stage but significant during the selling and growth stages.
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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.
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    Factors Influencing Usage of Mobile Banking Services: The Case Of Ilala District In Tanzania.
    (2017) Richard, Evelyn M; Mandari, Eliamringi
    The study assessed key factors that influence the usage of mobile banking services in Tanzania using TAM and transaction theory. A sample of 120 mobile phone users collected through a structured questionnaire was used. Descriptive, Pearson correlation and multiple regressions were employed for analysis. The study found that customers’ awareness and perceived ease of use have a significant positive influence while perceived risk and transaction cost have a significant negative influence on the usage of mobile banking services. Customers’ awareness and perceived ease of use have relatively greater influence on the usage of mobile banking services than perceived risk and transaction costs.