Capital market and performance analysis of the listen firms: a case study of Dar-es-Salaam Stock Exchange, 1998-2008

The aim of this study was to examine the development of capital markets and performance analysis of listed firm. The motivation of conducting this study emanates from the fact that Tanzania had gone through the ideology of socialism, which did not spearhead the establishment of stock exchange and thus hindered the performance of private companies. Therefore, this study examines how far the capital market has been able to achieve its objectives. The methodological approach used in this study was descriptive where by it maps out the capital market impact on the performance of the listed firms, also describe whether it is useful for raising finance and investment as well as the hindering factors for the growth of the capital market. Primary data was collected through questionnaire, discussions and interviews. Secondary data obtained from financial reports, journals and magazines. The respondents includes listed companies, unlisted companies, brokers, institutional investors, DSE and CMSA officials. The study found the capital market is the sustainable source for raising finance and investment but the lack of awareness and knowledge about the capital market and few listed companies and products are the limiting factors. The study implies that the government has to initiate in educating people about the capital market. The study implies that the government has to has to initiate in educating people about the stock market and emphasis should be on encouraging more companies to list on the DSE. This study did not provide end in itself, other areas for culture research like; the capital market and economic development of capital market in Tanzania as we as if the existing rules and regulation are useful in promoting the development of capital market in Tanzania.