Effects of macroeconomic variables on performance of listed firms at Dar es Salaam stock exchange, Tanzania

Abstract

PURPOSE: This article analysed the effect of macroeconomic variables on 21 DSE-listed firms from 2006 to 2021 due to past inconclusive results from other research across the globe.

METHODOLOGY: Mixed-sequential explanatory research design was used. Secondary panel data were collected from DSE while qualitative data was collected via semi structured interviews. Random effect model and thematic analysis were utilized for data analysis.

FINDINGS: The study found that GDP, inflation, and money supply had significant positive coefficients, while interest rates and exchange rates had significant negative coefficients, indicating that macroeconomic conditions have a substantial effect on firm performance.

PRACTICAL IMPLICATIONS: The findings suggest that firms should proactively manage macroeconomic conditions to remain competitive and sustainable.

ORIGINALITY/VALUE: The study's uniqueness lies in its use of qualitative data to support quantitative findings and its examination of the link between macroeconomic conditions and listed firm performance in Tanzania, where little similar research has been conducted.