Board Characteristics, Audit Committee Attributes and NBFIs Performance: Empirical Evidence from Tanzania

Abstract

This study investigates the relationship between corporate governance (CG) practices and the performance of listed NBFI’s on the Dar es Salaam Stock Exchange (DSE). Fourteen (14) non-bank financial institution companies were selected. Data was collected from annual reports for eight years, from 2015 to 2022. The results reveal that the existence of women directors on the board, audit committee independence and the long tenure of the CEO in the office resulted in a significant increase in NBFI performance. However, board meetings, chief executive officer –duality, audit committee size and audit committee meetings were insignificant does not improve the performance of listed NBFIs. In this regard, are not important and did not influence the profitability of listed NBFIs in Tanzania. The findings also revealed the existence of non-executive directors and board size significantly and negatively related to the performance of listed NBFIs. This study contributes to the literature that investigates the relationship between CG and the performance of listed NBFIs in Tanzania. The results are important for non-bank financial institution companies, policymakers and other stakeholders.

Keywords: Audit Committee Characteristics, Corporate Governance Practices, Non-banks Financial Institutions, Performance