Abstract:
The purpose of this study was to assess the effects of the financial transparency initiative
on the performance of the National Social Security Fund in Tanzania. This study focused
on three (3) variables, management commitment, financial regulatory environment and
governance structure. The study adopted a positivist research philosophy. Descriptive
research design was also used. The study employed quantitative research approach. A
sample size of 65 was drawn from the study population of 78 using stratified sampling
method. Questionnaire was used to collect data. Data were analyzed using descriptive
statistics and inferential statistics. Descriptive analysis findings revealed that
management commitment, regulatory environment, and governance structure influence
to a great extent the NSSF performance. Regression analysis findings revealed that
management commitment, regulatory environment, and governance structure positively
and significantly improve financial transparency and NSSF performance by 49.8%
(β=.498, sig value=.000), 3.5% (β=.035, sig value=.617), and 16.1% (β=.161, sig
value=.026) respectively. The study concludes that management commitment, regulatory
environment, and governance structure positively and significantly improve financial
transparency and NSSF performance. The study recommends that management should
reduce the degree of information asymmetry and subsequently boost financial
performance, management should release as much information as they can while also
making sure that the information is transparent to its customers. Additionally, study
recommends that management should comply with laid regulations and procedures
related to all financial matters, this would improve stakeholder trust and compliance
with standard codes of ethics and conduct in financial information. Finally, the study
recommends that NSSF should make sure that all information is transparent to its
customers and release as much information as possible to reduce the degree of
information asymmetry and, in turn, boost financial performance.
