THEEFFECT OF LIQUIDITY MANAGEMENT ON FINANCIAL SUSTAINABILITY OF SELECTED PRIVATE SECONDARY SCHOOLS IN TANZANIA

Abstract

The main purpose of the study was to examine the effect of liquidity management on financial sustainability for selected private secondary schools in the take zone Specifically The first objective was to determine Ihe factors of liquidity management that affect the financial sustainability of selected private secondary schools in the Simiyu and Mwanza The second of objective was to identify the liquidity challenges threatening the financial sustainability of selected private secondary schools in the Simiyu and Mwanza. The third objective was to examine the relationship between factors of liquidity management and financial sustainability oi selected private secondary schools in the Lake Zone. The research approach was quantitative in nature while the research design was descriptive; The targeted population was 192 financial administrators and applied the sampling formula to determine the sample size of 130 administrators who participated from 83 and 13 secondary schools from Mwanza and Simiyu respectively. A questionnaire was administered. to the financial administrators matter validation a. reliability testing. Moreover, descripted and inferential statistics were used in data analysis. Moreover, all ethical standards were adhered. The results indicated that financial administrators agree economic conditions, unreliable cash flows poor internal control systems, limited policies or procedures and lack of knowledge of liquidity management pose a threat to long-term financial sustainability of selected private secondary school in Simiyu and Mwanza. The regression analysis revealed that technical factors, liquidity risk management factors, profitability factors and economic factors for liquidity management affect financial sustainability of selected private secondary school in Simiyu and Mwanza. According to the results supported by empirical data. it is appropriate to conclude that technical factors. liquidity risk management factors, profitability factors and economic factors have a significant effect on financial sustainability of private secondary school located M Simiyu and Mwanza. Secondary school should formulate policies and regulations about liquidity management with the sole purpose to maintain long-term financial sustainability