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 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 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.

scholarly journals Role of Computerized AIS Applications in Preserving Organizational Financial Performance during COVID19: Moderating Role of Accountants' Experience

2021 ◽  
Vol 14 (4) ◽  
pp. 87
Author(s):  
Firas Hashem
Keyword(s):  
Information Systems ◽  
Financial Performance ◽  
Management Strategies ◽  
Accounting Information ◽  
Accounting Information Systems ◽  
Risk Management Strategies ◽  
Precautionary Measures ◽  
Moderating Role

Current study aimed at examining the role of AIS application in preserving financial performance of organizations during COVID19 pandemic. Depending on quantitative approach, study utilized a questionnaire built on likert scale which was distributed on (109) individuals within Jordanian organizations. Results of study indicated that accounting information systems contributed to the continuous follow-up and knowledge of the financial performance of the organizations during the pandemic period, which in turn supported the principle of correct and quick decision-making that is in the interest of shareholders, working individuals and customers by taking precautionary measures to ensure that the organization does not reach financial insolvency in view of financial data that together constitute the informational outputs of accounting information systems. This support was backed up with the moderating variable of accountants' experience, experience in this case managed to help accountants predict the coming situations and help the organization overcome the obstacles based on their previous experiences in similar situations. Study recommended the necessity of activating risk management strategies by organizations when facing crises and epidemics

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 Conceptual Model for Effective Board Composition in the Context of Emerging Markets

2015 ◽  
Vol 8 (1) ◽  
pp. 38
Author(s):  
Madi Almadi
Keyword(s):  
Corporate Governance ◽  
Emerging Markets ◽  
Financial Performance ◽  
Management Practices ◽  
Social Economic ◽  
Board Composition ◽  
Firm Financial Performance ◽  
The Impact ◽  
The Relationship ◽  
Practical Implications

The impact of context has little or no consideration in the mainstream corporate governance literature. The purpose of this paper is to consider social, economic, and political elements of the emerging Saudi Arabian market when developing a multi-theoretical model about the relationship between board composition and financial performance.<strong> </strong>The paper attempts to conceptually inform the conversation about context with regard to board composition and firm financial performance in emerging markets. In particular, it discusses these theoretical feedback loops in conjunction with a proposed research agenda for the field.<strong> </strong>The paper proposes shifting the focus of corporate governance in emerging markets from relying on the predominant Western corporate governance theories to the alignment of those theories with considerations on emerging markets context. Such an approach involves significant implications for corporate governance theories and management practices. The paper describes the conditions in which certain formation of board of directors is composed in the Saudi Arabia may generate a competitive advantage. The consideration of emerging markets context can have implications for society as it may influence firms and governments to improve corporate governance standards and practices<strong> </strong>A literature gap in the corporate governance literature identified in this paper holds theoretical and practical implications. This research will enable comparative studies with other emerging markets, and will provide a conceptual benchmark for future corporate governance research.

scholarly journals EFFECT OF CASH MANAGEMENT AUTOMATION ON FINANCIAL MANAGEMENT IN MERU COUNTY GOVERNMENT

2019 ◽  
Vol 4 (1) ◽  
pp. 1
Author(s):  
Bonface Mutuma Mugambi ◽  
Dr. Paul Gichohi ◽  
Mrs Susan Kambura
Keyword(s):  
Service Delivery ◽  
Technology Acceptance ◽  
Financial Management ◽  
Best Practice ◽  
Management Practices ◽  
Good Governance ◽  
County Government ◽  
Cash Management ◽  
Validity And Reliability ◽  
Automation Systems

Purpose The main purpose of the study was to find out if ICT adoption has a significant effect on financial management in the Meru County Government. Effective public financial management has attracted attention of many scholars in identifying the best practice and how to install fiscal disciplines. In search of good governance and sound financial management, the World Bank has been at the forefront in championing this aspect. Lack of effective financial management practices hinders effective service delivery.  Methodology: Technology Acceptance Model (TAM) theory is one of the models used to explain how technology is accepted by users. Descriptive survey research design study was used. The population for this study composed of the Meru county government staff. The sample size was 70 respondents in total, a questionnaire was used as the research tool whose validity and reliability was measured accordingly. Mean and regression analysis was computed when analyzing data.Results: The findings established that Cash management automation enables county leadership to understand the true cost of service delivered by the county per activity; that Through Cash management automation, the county finance department is able to reconcile transactions data in real-timeOn Cash management automation the study concludes that successful cash management automation in any institution is essential due to difficulties that come with accessing credits whenever an organization is facing liquidity several constraints.Unique contribution to theory, policy and practice: From the findings on cash management automation the study recommends that automation systems should be fully implemented as it increases cash management. For Meru county Government to realize growth, investment in technology should be made in order to enhance service delivery and transparency in cash management.

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  

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