ASSESSMENT OF FINANCIAL MANAGEMENT PRACTICES ON A COMPANY’S FINANCIAL PERFORMANCE: A CASE OF HWANGE COLLIERY COMPANY (HCC)
Keywords:
Financial Management Practices, Fixed Assets Management, Capital StructureAbstract
The aim of the study was to examine how financial management practices influence the financial performance of an organization. This investigation was motivated by the company's decreasing profitability despite attempts to implement cost-saving measures. Consequently, the research scrutinized the effects of existing practices in managing working capital, fixed assets, capital structure, and investments. The study utilized a descriptive research design and adopted a quantitative research approach. The population consisted of the 46 administrative personnel at Hwange Colliery Company (HCC), with a sample size of 30. A structured questionnaire survey was conducted. Regression analysis and Pearson correlation coefficient were employed to assess the relationship between financial performance factors and financial management practices. The findings revealed a significant impact of financial management strategies on the company's financial performance. To enhance resource efficiency, the study suggests improving accounts receivable management and ensuring sound investment decisions to mitigate potential losses
References
Ali, Y.S.A., Isak, A.O. (2019), Financial
management practices and financial
performance of service companies in
Somalia. Research Journal of Finance and
Accounting, 10(4), 1-10.
Alvarez, T., Sensini, L., Vazquez, M. (2021),
Working capital management and
profitability: Evidence from an emergent
economy. International Journal of
Advances in Management and Economics,
(1), 32-39. Atayah, O.F., Dhiaf, M.M.,
Najaf, K., Frelevico, G.F. (2021), Impact of
COVID-19 on the financial performance of
logistics firms: Evidence from G-20
countries. Journal of Global Operations and
Strategic Sourcing, 11(1), 28.
Deloitte. (2018), Make Your Working
Capital for You: Strategies for Optimising
Your Accounts Receivable. Canada: Deloitte
Designing Studio. Available from:
https://www.deloitte.ca [Last accessed on
Oct 10].
Edouard, S. (2021), Financial management
practices on financial performance at
selected private insurance companies,
Kigali, Rwanda. International Journal of
Scientific Research and Management,
(10), 2492-2506.
Kader, M.A., Khan, M.A.Z. (2019), Financial
management practices on financial
performance. Globus an International
Journal of Management and IT, 11(1), 6-
Matongo, F.T. (2017), Analysis of the
Effects of Cost Cutting Measures on
Financial Performance: A Case of ZETDC,
Doctoral Dissertation Conducted at
Midlands State University, Gweru,
Zimbabwe.
Mrefu, I.C., Gichure, D. (2022), Effect of
cash management practices on
performance of manufacturing firms listed
at the Nairobi securities exchange, Kenya.
International Journal of Research and
Review, 9, 288-304.
Nareswari, N., Nurmasari, N.D. (2021),
Working capital management on financialy
constrained firm. Business and Finance
Journal, 6(2), 127-134.
Nthenge, D., Ringera, J. (2017), Effects of
financial management practices on financial
performance of small and medium
enterprises in Kaimbu town, Kenya.
American Based Research Journal, 6(1),
-75.
Oladipo, O.N., Adegboyo, O.S.,
Olugbamiye, D.O. (2020), Effects of
working capital management on profitability
in manufacturing firms in Nigeria. Journal of
Accounting and Management, 10(3), 154-
Olajide, J., Adebowale, O.J. (2022),
Account receivables management and
performance of pharmaceutical firms in
Nigeria. International Business Review, 3,
-14.
Ongosi, J.N., Otinga, H.N. (2020), Financial
management practices and financial
performance of micro finance institutions in
Nairobi country Kenya. The Strategic Journal
of Business and Change Management, 7(4),
-1297.
Pangaribuan, C.H., Putra, C., Wahyuni, M.,
Hidayat, D., Putra, O.B. (2021) The roles of
unobstructed play and motivation to
compete in influencing in-game virtual
goods purchase: A preliminary study.
International Journal of Economics and
Management Systems, 6, 119-125.
Paul, P., Mitra, P. (2018), A critical analysis
of the financial efficiency of the steel
industry in India. Asia-Pacific Journal of
Management Research and Innovation, 12,
(3-4), 242-249.
Potwana, M., Mouton, M., Botha, I. (2022),
The influence of working capital
components and policies on the profitability
of South African clothing retailers. The
Retail and Marketing Review, 18(1), 42-18.
Wambia, W.O., Jagongo, A. (2020), The
effects working capital management
practices on the financial performance of
insurance companies in Kenya.
International Academic Journal of
Economics and Finance, 3(5), 103-120.
Downloads
Published
How to Cite
Issue
Section
License
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
