This study aimed at examining the effect of financial control mechanisms on thefinancial sustainability of selected Local Government Authorities in Tanzania,examining good governance as a moderating variable in knowledgeadvancement. The direction of the study was given by the Institutional and theAgency theories. Explanatory research design was employed. The gathered datawas subjected to inferential and descriptive analysis techniques. Data wascollected through the use of questionnaire. Structural Equation Modelling wasused for data analysis. The results revealed that financial control has positiveand significant relationships with financial sustainability. It suggests thateffective financial control is critical for ensuring resources availability andefficient utilization, thereby enhancing local government operations’sustainability. Multi-group analysis confirmed positive moderation of goodgovernance of a path of financial control and financial sustainability. Thepractical implication of the findings is that, institutions that promote effectivefinancial control contribute to their long-term financial sustainability, and thatprioritizing good governance reforms in local government leads to betterfinancial outcomes.
Elizabeth Mlay (Sat,) studied this question.
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