Analysis of the relationship between internal controls and profitability in commercial banks in Tanzania: the case of commercial banks in Tanzania
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Date
2016
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
University of Dar es Salaam
Abstract
This study performed analysis of the relationship between internal control and profitability in commercial banks in Dar es Salaam, Tanzania. In this study the institutional and contingency theories were applied. The study assessed status and three scenarios of internal controls which were application of single or in combination of four primary variables (Model 1) or six variables which include Model 1 together with mediation variables (Model 2) and their influence on profitability in commercial banks of Tanzania were done Methodology: Questionnaires were used for data collection. Descriptive, correlation and linear regression statistical analysis were performed using SPSS v20 software package. Findings: The study found presence of internal controls in Tanzanian commercial banks through high rating by respondents; also there was significant relationship between all variables and models of internal controls and profitability. A comparison of four variable model (Model 1) and six variable model (Model 2) found that Model 2 is a better than Model 1 in the prediction of the variability of profitability model 2 having higher F-statistics, R-squared and adjusted R-squared statistics than model1. Significant linear relationship between internal controls and profitability was observed. Model 2 having five independent variables significantly contributing to the prediction of the profitability in commercial banks in Tanzania Conclusion: This study concludes that use of internal controls has a substantial influence on commercial banks profitability in Tanzania.
Description
Available in print form, EAF collection, Dr. Wilbert Chagula Library, class mark ( THS EAF HG1615.T34P47 )
Keywords
Banks and banking, Bank management, Tanzania
Citation
Perengo, F ( 2016 ) Analysis of the relationship between internal controls and profitability in commercial banks in Tanzania: the case of commercial banks in Tanzania,Masters dissertation, University of Dar es Salaam, Dar es Salaam.