THE EFFECTS OF COVID-19 PANDEMIC ON FINANCIAL PERFORMANCE OF LISTED COMPANIES IN TANZANIA

Abstract

This Study assessed the effects of COVID-19 pandemic on financial performance (ROA), Capital invested and Sales of listed companies in Tanzania. Specific objectives were to examine effects of COVID-19 in ROA of financial companies listed at DSE, to determine COVID-19 pandemic impact on capital investment of financial companies listed at DSE and to determine COVID-19 pandemic impact on sales of financial companies listed at DSE. The study adopted quantitative research approach in order to be correctly examined. This research adopted descriptive research design. The study used panel data to be constructed from audited financial statements of the 28 companies listed at Dar es Salaam Stock Exchange. The data analyzed using independent t-test with the assistance of SPSS version 23 for the comparison of financial performance from the period of before COVID-19 of 2017 to 2019 in order to assess financial performance in a period after COVID-19 of 2020 to 2021. Though the effects of COVID-19 go beyond July 2021. However, this study ends 2021 due to accessibility of data of the audited financial statements of the listed companies. The future similar studies can extend to the other periods. The results showed that there are statistically significant effects of ROA. ROA for individual companies list at DSE is too high before Covid-19 and after COVID-19 the standard deviation decreased from 569.405% to 17.863% whereby this suggest that ROA of the listed companies did vary significantly. Capital invested before and after COVID-19 had a mean of 1.07 billion and standard deviation of 4.4 billion and showed a mean of 1.4 billion and standard deviation of 6.07 billion respectively this indicated that the capital invested for individual listed company had high variation. Also, the results revealed that sales level before and after COVID-19 had a mean of 860 million and 712 million and standard deviation of 3,093,838,156 and 2,058,136,463 respectively, this indicates that sales level also had vary significantly.