THE INTERPLAY BETWEEN INTERNAL CONTROLS AND FINANCIAL PERFORMANCE: EVIDENCE FROM PRIVATE HEALTH INSTITUTIONS IN MOROGORO MUNICIPALITY, TANZANIA

Business Management

Our study investigates the intricate relationship between internal controls and financial performance within the context of private health institutions operating in Morogoro Municipality, Tanzania. The study aims to provide empirical evidence regarding the impact of effective internal control systems on the financial performance of these institutions. Our approach is thorough, encompassing a mix of qualitative and quantitative methods, drawing insights from a dataset comprising responses from 100 participants. The collected information was subjected to descriptive analysis. Furthermore, we conducted multiple linear regressions to scrutinize the connection between internal control and financial performance. The results of the multiple linear regression unveiled that factors such as the control environment, monitoring activities, control activities, employee education, and employee age, exerted a favorable influence on financial performance. Notably, these variables exhibited statistical significance across various thresholds: 1%, 5%, and 10%. These findings underscore the role of the internal control framework and specific socio-economic traits like employee age and educational background in significantly shaping the financial performance of private healthcare establishments. The implications of the study emphasize the pivotal importance of robust internal control implementations and the fostering of employee education and retention, both contributing factors to achieving enhanced financial performance.

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