scholarly journals FINANCIAL MANAGEMENT PRACTICES ON FINANCIAL PERFORMANCE

2020 ◽  
Vol 11 (1) ◽  
pp. 6
Author(s):  
Md. Abdul Kader ◽  
Md. Abu Zahar Khan
Keyword(s):  
Financial Performance ◽  
Financial Management ◽  
Management Practices

scholarly journals Microfinance Credit Accessibility and Financial Performance of Small and Medium Enterprises in Machakos County, Kenya

2020 ◽  
Vol 4 (1) ◽  
pp. 71
Author(s):  
Muema Joseph Munguti ◽  
Lucy Wamugo
Keyword(s):  
Financial Performance ◽  
Financial Management ◽  
Management Practices ◽  
Banking Sector ◽  
Small And Medium Enterprises ◽  
Small Population ◽  
Financial Access ◽  
Income Ratio ◽  
Medium Enterprises ◽  
Positive Effect

SMEs in Machakos County have been characterized by poor financial performance which has been linked to financial access. Financial access is one of the keys that drive the development of SME in the country, particularly access to bank financing since banking sector plays a key role in serving this segment. This study specifically sought to determine the influence of collateral security, loan-income ratio and geographical branch penetration on financial performance of SMEs. Study adopted census survey due to small population size. Respondents were supplied with semi-structured questionnaires with aim of getting their views regarding financial accessibility and SME performance. Findings of the study indicated that collateral security, loan-income ratio, and geographical branch penetration has a significant positive effect on financial performance in Machakos County, Kenya. This research recommends that SME’s should improve their core capital, strengthen their financial management practices, foster financial innovation, and literacy within firms.

scholarly journals Cash management strategies and firm financial performance

2020 ◽  
Vol 2 (2) ◽  
pp. 36-43
Author(s):  
Mustapher Faque
Keyword(s):  
Financial Performance ◽  
Financial Management ◽  
Management Practices ◽  
Management Strategies ◽  
Hybrid Approach ◽  
Cash Management ◽  
Firm Financial Performance ◽  
Transaction Model ◽  
Asset Portfolio ◽  
Precautionary Measures

Cash(liquidity) management is at the heart of a firm’s financial management. It is a silver lining between the bankruptcy and the success story of a company. Therefore, this study intends to contribute some insights into cash management practices and how firms can use them to achieve sound financial performance. This study provides a comprehensive literature review on existing theories and cash management practices that are useful in decision making. After the analysis of the available literature, the study highlights important theories including tradeoff theory (TOT), transaction model, precautionary measures, financial hierarchy, and cash flow theory. Furthermore, management practices such as stochastic cash management model, speeding up cash collections, centralization & decentralization of management, asset portfolio diversification, and cash disbursement are discussed.  The study suggests that a sound financial performance can be achieved through a hybrid approach and through adaptation and embracing innovations in cash management systems.

scholarly journals Financial Management Practices on Financial Performance at Selected Private Insurance Companies, Kigali, Rwanda

2021 ◽  
Vol 9 (10) ◽  
pp. 2492-2506
Author(s):  
SEMUCYO Edouard
Keyword(s):  
Information System ◽  
Capital Structure ◽  
Financial Performance ◽  
Financial Reporting ◽  
Financial Management ◽  
Management Practices ◽  
Private Insurance ◽  
Accounting Information ◽  
Insurance Companies ◽  
Accounting Information System

The general objective of this dissertation was to assess the relationship between financial management practices and the financial performance of private insurance companies in Rwanda. It was guided by the following specific objectives which are to assess the impact of financial management practices on return on investment (ROI) of insurance companies in Rwanda; to examine the impact of financial management practices on return on assets (ROA) of insurance companies in Rwanda and to find out the impact of financial management practices on return on equity (ROE) of insurance companies in Rwanda. The research design used a descriptive causal approach to research that takes cross-sectional data into account and helped the researcher to use the questionnaire and documentary review the primary data collection tool and the secondary data collection analysis, respectively. For the first objective, the study shows that an adjusted R square of 44.8% of ROI of private insurance companies in Rwanda is attributed to a combination of the four factors independent factors (fixed assets management, accounting information system, financial reporting analysis, and capital structure management) used by private insurance companies in Rwanda. For the second objective, the findings revealed that an adjusted R square of 80.9% of return on assets of private insurance companies in Rwanda is attributed to a combination of the four factors independent factors (fixed assets management, accounting information system, financial reporting analysis, and capital structure management) used by private insurance companies in Rwanda .For the third objective, the findings revealed that an adjusted R square of 36.8% of return on equity (ROE) of private insurance companies in Rwanda is attributed to a combination of the four factors independent factors (fixed assets management, accounting information system, financial reporting analysis, and capital structure management) used by private insurance companies in Rwanda. The study concluded that working capital management, capital structure management, financial reporting analysis and accounting information system, play significant positive effect on financial performance of private insurance companies in Rwanda while fixed asset management have negative effect on the financial performance of private insurance companies in Rwanda. The study is recommending insurance companies’ management to implement recommended steps considered as possible ways to ensure improvement of their financial management practices for better financial performance.   Key words: Financial management practices, financial performance, insurance companies, Rwanda  

scholarly journals Cash management strategies and firm financial performance

2022 ◽  
Vol 3 (4) ◽  
pp. 23-30
Author(s):  
Mustapher Faque
Keyword(s):  
Financial Performance ◽  
Financial Management ◽  
Management Practices ◽  
Management Strategies ◽  
Hybrid Approach ◽  
Cash Management ◽  
Firm Financial Performance ◽  
Transaction Model ◽  
Asset Portfolio ◽  
Precautionary Measures

Cash(liquidity) management is at the heart of a firm’s financial management. It is a silver lining between the bankruptcy and the success story of a company. Therefore, this study intends to contribute some insights into cash management practices and how firms can use them to achieve sound financial performance. This study provides a comprehensive literature review on existing theories and cash management practices that are useful in decision making. After the analysis of the available literature, the study highlights important theories including trade-off theory (TOT), transaction model, precautionary measures, financial hierarchy, and cash flow theory. Furthermore, management practices such as stochastic cash management model, speeding up cash collections, centralization & decentralization of management, asset portfolio diversification, and cash disbursement are discussed.  The study suggests that a sound financial performance can be achieved through a hybrid approach and through adaptation and embracing innovations in cash management systems.

scholarly journals Effects of Selected Financial Management Practices on Financial Performance of Commercial Banks in Kenya

2021 ◽  
Vol 6 (1) ◽  
pp. 17-38
Author(s):  
Faith Njeri Harrison ◽  
Dr. Monica Muiru
Keyword(s):  
Risk Management ◽  
Capital Structure ◽  
Financial Performance ◽  
Financial Management ◽  
Commercial Banks ◽  
Management Practices ◽  
Management Practice ◽  
Secondary Data ◽  
Credit Risk Management ◽  
The Relationship

Purpose: The main aim of the study was to determine effects of selected financial management practices on financial performance of commercial banks in Kenya. The research was guided by the following specific objectives; to determine the influence of liquidity management, capital structure management, credit risk management and working capital management on the financial performance of commercial banks in Kenya.Methodology: The research employed a descriptive research design. Census method of sampling was employed, all the 43 commercial banks formed the study units. Both primary and secondary data were used. Secondary data was obtained from the audited annual financial reports of the commercial banks in Kenya while primary data was collected using questionnaire which was designed in form of Likert scale. Descriptive and inferential statistics were used, whereby correlation and regression were used to establish the strength of the relationship between the financial management practices and financial performance of the commercial banks. Data was presented inform of tables, mean and standard deviation. Correlation analysis was performed to examine the relationship between the financial management practices and financial performance of the commercial banks.Results: The study concludes that liquidity management had positive significant effect on the financial performance of commercial banks in Kenya.  Measuring liquidity risk is important to making sure that liquidity problems are identified in time.  The study concludes that capital structure management practice has positive significant effect on the financial performance of commercial banks in Kenya. On credit risk management practice, the research found strong positive significant on the financial performance of commercial banks in Kenya. Most of financial institutions have risk eliminating strategy in place, proper risk management. Finally, the study concludes that working capital management practice has positive significant on the financial performance of commercial banks in Kenya.Unique contribution to theory, policy and practice: The research recommends that banks management should make sure that they maintain substantial levels of liquidity, so as to maintain competitive performance. Commercial institution must have a feasible capital structure in place that addresses issues such, as flexibility where changes in the capital market should be well adapted to the capital structure.

scholarly journals The Impact of Cash Management Practices toward Financial Performance of Small and Medium Enterprises in Indonesia

2021 ◽  
Vol 1 (1) ◽  
pp. 35-47
Author(s):  
Nuzulia Amini ◽  
Bambang Setiono ◽  
Christian Haposan Pangaribuan ◽  
Elfindah Princes
Keyword(s):  
Regression Analysis ◽  
Financial Performance ◽  
Significant Relationship ◽  
Financial Management ◽  
Management Practices ◽  
Management Practice ◽  
Profit Margin ◽  
Cash Management ◽  
The Government ◽  
The Impact

Objective – The importance of SMEs in Indonesia has been becoming the center of attention for the government to help the national economy grow. However, there are still many problems that hinder the potential of SMEs to develop. One of the problems is financial Management in terms of cash management, which can help SMEs have better Management over cash and better performance. Therefore, this study aims to analyze the current two elements of cash management practice, forecasting (FOR) and cash mobilization (CML) done by SMEs in Indonesia and its impact on Return on Assets (ROA) and Gross Profit Margin (GPM) as the financial performance measurements. Methodology – The research uses a quantitative approach from 90 SMEs in Java and Bali islands from April until July 2018. The data were analyzed descriptively using a 4-point scale questionnaire.  A regression analysis was added to find out significant relationships between the variables. Findings – The research found that SMEs owners/managers often do forecasting and rarely do cash mobilization practices. The regression analysis shows a significant relationship between cash management practices and ROA but a non-significant relationship between cash management practices and Gross Profit Margin (GPM). Novelty – This research provides an insight of how cash management practices influence the financial performance in the context of SMEs.

Financial Management of Tires Retail and Restaurant Business in Greater Jakarta

2019 ◽  
Vol 2 (4) ◽  
pp. 267-275
Author(s):  
Sung Suk Kim ◽  
Jacob Donald Tan ◽  
Rita Juliana ◽  
John Tampil Purba
Keyword(s):  
Financial Management ◽  
Management Practices ◽  
Working Capital ◽  
Structured Interviews ◽  
Short Term ◽  
Direct Observations ◽  
Medium Enterprises ◽  
Cash Reserves ◽  
Retained Earnings ◽  
Computerized System

This study aims to explore the financial management practices ofsmall-and-medium-enterprises (SMEs) in the Greater Jakarta (Jabodetabek). We investigate into 3 SME cases by conducting the semi-structured interviews with the owner-managers and using direct observations to know the practices of financial management of SMEs. Through the research, we have found six propositions related to the practice of short-term financial management. They apply bootstraps to ensure availability of working capital. They set aside cash reserves from retained earnings and minimize loans from financial institutions. They have the computerized system to track receivables facilitating working capital needs. They keep theirinventory control efficient to manage working capital. They screen customers using transactional records and reputations to minimize the risk of bad debts.

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