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Examining the Effect of Financial Planning on the Financial Sustainability of Selected Local Government Authorities in Tanzania: The Moderating Effect of Good Governance
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Abstract
This study examines how financial planning affects the financial sustainability of local
government authorities in Tanzania. It draws on Agency Theory and Institutional Theory to
guide the research. Using an explanatory research design, the study employs quantitative
data analysis methods, including descriptive and inferential analyses, facilitated by IBM
SPSS and Amos SPSS tools. Data is collected through questionnaires and analyzed with
descriptive and inferential statistics, including Structural Equation Modeling (SEM). The
results show that financial planning positively influences the financial sustainability of local
government authorities. The study finds a stronger correlation between financial planning
and sustainability in authorities that do not adhere to good governance practices, compared
to those that follow good governance. The conclusion highlights that many local government
authorities face sustainability challenges, which can be addressed by improving financial
planning and performance evaluation procedures. The study recommends that management
focus on enhancing financial planning practices to boost financial sustainability.
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References
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