A STUDY ON THE IMPACT OF CORPORATE GOVERNANCE ON THE FINANCIAL STABILITY OF SEVENTH-DAY ADVENTIST CHURCH EDUCATIONAL INSTITUTIONS IN TANZANIA

Abstract

This study examines the impact of corporate governance on the financial stability of Seventh-day Adventist Church (SDAC) educational institutions in Tanzania. The study used a qualitative research design and collected data through a questionnaire from 60 respondents consisting of senior accountants, oldest serving teachers, second master/mistress, and academic masters from 15 secondary schools of the Northern Tanzania Union Conference of SDAC in Tanzania. The findings reveal that incompetence of administration at all levels, nepotism, poor customer care, misuse and theft of institutional money, and not acting upon audit reports contributed to the financial crisis of the SDAC educational institutions. Besides, the wrong treatment of employees who are the customer carers and inefficient boards were also identified as factors behind the financial instability. The study suggests that good corporate governance practices can improve the financial stability of church institutions and ensure efficient utilization of resources