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International Journal of Social Sciences & Economic Environment

ANALYSIS OF DETERMINANTS OF ISSUANCE OF MUNICIPAL BONDS IN TANZANIA: A CASE OF SELECTED MUNICIPAL COUNCILS IN TANZANIA

Thobias J.Menge, Isidore Minani, Alberto G. Ndekwa

Thobias J.Menge, Isidore Minani & Alberto G. Ndekwa

Masters Student, Thobias J. Menge, Ruaha Catholic University

Senior lecturer, Ruaha Catholic University,Dr. Isidore Minani, Ph.D (Business Admin- Finance), MBA(Finance and Banking), BBA (Accounting), CCNA, ITE-

Senior lecturer, Ruaha Catholic University,Dr. Albert Ndekwa,Ph.D (Business and Finance)

DOI : http://doi.org/10.53882/IJSSEE.2024.0901004 Page No : 53-77

Published Online : 2024-06-30

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ABSTRACT

Aim of the Study: the study aiming at describing the state of the determinants namely regulatory framework, procedures capacity, and revenue collection capacity of issuance of municipal bonds.

Methodology: Data collected through Questionnaire from targeted Fifty (50) selected municipal councils in Tanzania, through descriptive statistics analysis.

Findings: The results indicate that, regulatory framework, procedures capacity of accounting requirements, and revenue collection capacity are identified as critical determinants drivers of issuance of municipal bonds in Tanzania. The research findings furthermore indicated that a well-designed and robust regulatory framework and clear accounting system, essential for issuance of municipal bonds in Tanzania. Practical Implications: this study shows that strong procedures capacity related to accounting requirements is critical for the issuance of municipal bonds. Well-established accounting practices in municipal councils in Tanzania to accurately record, report, and disclose financial information related to bond issuance. Also, remarked strengthening revenue collection capacity is vital for municipalities in Tanzania seeking to issue bonds.

Originality/value: The current study makes a substantial contribution to emphasize the importance of a well-designed regulatory framework, strong procedures capacity of accounting requirements, and effective revenue collection systems for municipal bond market in Tanzania.

Keywords: determinants, issuance, and municipal Bonds.

Paper type: Research paper.

REFERENCES

Adelino, M., Cheong, C., Choi, J., & Oh, J. Y. J. (2021). Mutual Fund Flows and Capital Supply in Municipal Financing. SSRN Electronic Journal. DOI: https://doi.org/10.2139/ssrn.3966774
Annisa, S. W., Combo, M. R., & Afaf, A. (2019). Prosperity of the Process and Issuance of Regional Bonds and Risk of Public Bonds Registration in Indonesia. Notaire. DOI: https://doi.org/10.20473/ntr.v2i1.13100
Biles, R. (2018). Public policy made by private enterprise: Bond rating agencies and Urban America. Journal of Urban History. DOI: https://doi.org/10.1177/0096144215620585
Brien, S. T., & Yan, W. (2020). Are Overlapping Local Governments Competing With Each Other When Issuing Debt? Public Budgeting and Finance.DOI: https://doi.org/10.1111/pbaf.12264
Bronshtein, G., & Makridis, C. A. (2020). The declining insurance benefit in the municipal bond market. In National Tax Journal. DOI: https://doi.org/10.17310/ntj.2020.1.04
Choi, (2022) : Cross-cultural Information Access. Proceedings of the Association for Information Science and Technology. DOI: https://doi.org/10.1002/pra2.624
Chen, (2020): Clinical Characteristics and Outcomes of Older Patients with Coronavirus Disease 2019 (COVID-19) in Wuhan, China: A Single-Centered, Retrospective Study. DOI: https://academic.oup.com/biomedgerontology/article/75/9/1788/5819242?login=false
DiMaggio and Powell, (1983). The Iron Cage Revisited: Institutional Isomorphism and Collective Rationality in Organizational Fields. Retrieved From: https://www.jstor.org/stable/2095101?origin=JSTOR-pdf
Gorelick, J. (2018). Supporting the future of municipal bonds in sub-Saharan Africa: the centrality of enabling environments and regulatory frameworks. Environment and Urbanization. DOI: https://doi.org/10.1177/0956247817741853
Harimurti, A. J., & Zaky, A. (2020). Obstacles And Strategy Of Municipal Islamic Bonds Issuance As An Alternative Of Municipal Funding. AFEBI Islamic Finance and Economic Review. DOI: https://doi.org/10.47312/aifer.v3i01.250
Park, (2021: Cost-effectiveness analysis of a model of first-trimester prediction and prevention of preterm pre-eclampsia compared with usual care. DOI: https://doi.org/10.1002/uog.22193
Tiron-Tudor, A., Ștefănescu, C. A., & Dan, A. (2021). The determinants of the municipal bonds market in Romania. Transylvanian Review of Administrative Sciences, 17(63), 175–192. DOI: https://doi.org/10.24193/tras.63E.9
Tumanggor, M. S. (2020). Issuance of Municipal Bonds through Capital Markets as Financial Revenue for Regional Development. International Journal of Economics and Business Administration.DOI: https://doi.org/10.35808/ijeba/519
Wang and Ahmed, (2007): Dynamic capabilities: A review and research agenda. DOI: https://doi.org/10.1111/j.1468-2370.2007.00201.x
Yan, (2020): Unprecedented pandemic, unprecedented shift, and unprecedented opportunity. DOI: https://doi.org/10.1002/hbe2.192
Zedan, K., Daas, G., & Awwad, Y. (2020). Municipal bonds as a tool for financing capital investment in local government units in Palestine. Investment Management and Financial Innovations, 17(1), 213–226. DOI: https://doi.org/10.21511/imfi.17(1).2020.19

Thobias J. et. Al (2024), “Analysis Of Determinants Of Issuance Of Municipal Bonds In Tanzania: A Case Of Selected Municipal Councils In Tanzania”, International Journal of Social Sciences & Economic Environment, Vol. 9, Issue1, 2024, pp 53-77, DOI: http://doi.org/10.53882/IJSSEE.2024.0901004

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REFERENCES

Adelino, M., Cheong, C., Choi, J., & Oh, J. Y. J. (2021). Mutual Fund Flows and Capital Supply in Municipal Financing. SSRN Electronic Journal. DOI: https://doi.org/10.2139/ssrn.3966774
Annisa, S. W., Combo, M. R., & Afaf, A. (2019). Prosperity of the Process and Issuance of Regional Bonds and Risk of Public Bonds Registration in Indonesia. Notaire. DOI: https://doi.org/10.20473/ntr.v2i1.13100
Biles, R. (2018). Public policy made by private enterprise: Bond rating agencies and Urban America. Journal of Urban History. DOI: https://doi.org/10.1177/0096144215620585
Brien, S. T., & Yan, W. (2020). Are Overlapping Local Governments Competing With Each Other When Issuing Debt? Public Budgeting and Finance.DOI: https://doi.org/10.1111/pbaf.12264
Bronshtein, G., & Makridis, C. A. (2020). The declining insurance benefit in the municipal bond market. In National Tax Journal. DOI: https://doi.org/10.17310/ntj.2020.1.04
Choi, (2022) : Cross-cultural Information Access. Proceedings of the Association for Information Science and Technology. DOI: https://doi.org/10.1002/pra2.624
Chen, (2020): Clinical Characteristics and Outcomes of Older Patients with Coronavirus Disease 2019 (COVID-19) in Wuhan, China: A Single-Centered, Retrospective Study. DOI: https://academic.oup.com/biomedgerontology/article/75/9/1788/5819242?login=false
DiMaggio and Powell, (1983). The Iron Cage Revisited: Institutional Isomorphism and Collective Rationality in Organizational Fields. Retrieved From: https://www.jstor.org/stable/2095101?origin=JSTOR-pdf
Gorelick, J. (2018). Supporting the future of municipal bonds in sub-Saharan Africa: the centrality of enabling environments and regulatory frameworks. Environment and Urbanization. DOI: https://doi.org/10.1177/0956247817741853
Harimurti, A. J., & Zaky, A. (2020). Obstacles And Strategy Of Municipal Islamic Bonds Issuance As An Alternative Of Municipal Funding. AFEBI Islamic Finance and Economic Review. DOI: https://doi.org/10.47312/aifer.v3i01.250
Park, (2021: Cost-effectiveness analysis of a model of first-trimester prediction and prevention of preterm pre-eclampsia compared with usual care. DOI: https://doi.org/10.1002/uog.22193
Tiron-Tudor, A., Ștefănescu, C. A., & Dan, A. (2021). The determinants of the municipal bonds market in Romania. Transylvanian Review of Administrative Sciences, 17(63), 175–192. DOI: https://doi.org/10.24193/tras.63E.9
Tumanggor, M. S. (2020). Issuance of Municipal Bonds through Capital Markets as Financial Revenue for Regional Development. International Journal of Economics and Business Administration.DOI: https://doi.org/10.35808/ijeba/519
Wang and Ahmed, (2007): Dynamic capabilities: A review and research agenda. DOI: https://doi.org/10.1111/j.1468-2370.2007.00201.x
Yan, (2020): Unprecedented pandemic, unprecedented shift, and unprecedented opportunity. DOI: https://doi.org/10.1002/hbe2.192
Zedan, K., Daas, G., & Awwad, Y. (2020). Municipal bonds as a tool for financing capital investment in local government units in Palestine. Investment Management and Financial Innovations, 17(1), 213–226. DOI: https://doi.org/10.21511/imfi.17(1).2020.19

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