Assessment of financial performance of commercial banks before and after being listed on Dar es salaam stock exchange: the case of Tanzania: danel data analysis
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Date
2013
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Publisher
University of Dar es Salaam
Abstract
This study assesses the financial performance of commercial banks in Tanzania before and after they were listed on Dar es Salaam Stock Exchange (DSE). The main motive was to investigate how listing of shares in the stock market can facilitate the improvement of the overall financial performance of banks. The research design was descriptive and quantitative data analysis was extensively used to analyse the financial statements of the three listed commercial banks covering the period before they were listed and after the listing. Data was analysed using the Analysis of Variance to obtain the result of the hypothesis and summaries were presented in forms of tables, graphs and narrative models. Findings suggested that the overall financial performance have not improved much after listing. On one side the banks were performing well but on other side were performing well, therefore it become difficult to judge whether the performance improved as a result of listing of the bank’s shares. Listing on the other hand makes the banks to avoid the non-payment of interest expenses hence improve the internal capacity and future growth of the firms. It is recommended that before going public, banks should make sure that they have prepared themselves well so as to meet these additional costs associated with listing their shares. The banking industry is very attractive and there are prospect of increased number of shareholders in the industry, therefore banks are encouraged to list their shares in the stock market.
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Keywords
Commercial banks, Dar es salaam stock exchange, Tanzania
Citation
Dallo, M. A (2013) Assessment of financial performance of commercial banks before and after being listed on Dar es salaam stock exchange: the case of Tanzania: Panel data analysis, Master dissertation,University of Dar es Salaam. (Available at http://41.86.178.3/internetserver3.1.2/search.aspx)