Effects of Financial Transparency Initiatives on the Performance of National Social Security Fund (Nssf)

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.