Financial literacy is important for small and medium enterprises to effectively manage their finances and make good financial decisions. Lack of financial literacy can negatively impact SME performance by preventing them from properly assessing financing options and managing debts. Specifically, lack of knowledge in bookkeeping, debt management, and financial planning can magnify financial barriers for SMEs and limit their ability to grow and achieve their goals. Empirical studies show that SMEs with higher financial literacy, including skills in bookkeeping, debt management and understanding financial concepts, tend to have better financial performance through improved profitability, sales growth and ability to access appropriate financing.
Growth Implications of Managerial Finance in Business: Empirical Evidence fro...Premier Publishers
The effective management of business finance is critically dependent on the proper understanding of the interrelationships between different dimensions of financial management and growth performance of the business. This study examines the relationship between selected managerial finance functions and growth of business in Akwa Ibom State, Nigeria using Pearson’s Product Moment Correlation model. The results show that all the managerial functions selected for the study are positively correlated with growth, but with varying levels of significance. The implication of the results is that, given the diversity and specialized nature of managerial finance, every dimension of management relating to financial resources should be taken seriously to ensure long-term sustainable growth of business.
Managerial oversight rather than inadequate finance has been ascribed as the necessitating fundamental to business failure in less-developed countries. Finance plays a crucial role in the establishment, growth and sustainability of business. However, it is delicate; its inadequacy or excess is as dangerous asineffective management. This paper examines the importance of finance function, the imperativeness of financial strategies and the special role of finance manager in business sustainability. In addition, a reflection is made of the financial management practicesof businesses in African countries, and recommendations made for changes required for their sustainability.
Corporate Governance on Earnings Management in Listed Deposit Money Bank in N...ijtsrd
The increase in the manipulation of accounting records and collapse of some Nigerian Deposit Money Banks have left question in the mind of researchers on the role of corporate governance. This paper was carried out to examine the impact of corporate governance attributes on earnings management of listed Deposit Money Banks from 2009 to 2017. The study used a sample size of thirteen 13 banks. The dependent variable was measured using Discretionary Loan Loss Provision Model by Chang, Shen and Fang 2008 . Correlational design was employed the secondary data was obtained from the annual reports of the firms and Nigerian Stock Exchange website. The results from the multiple regression analysis proved that board size has positive and significant impact on earnings management board independence has negative and significant impact on earnings management while board of directors' ownership has insignificant impact on earnings management. The study concludes that effective monitoring role of independence directors will constrain the opportunistic behavior by managers. The paper therefore recommends among others that banks should increase the numbers of independent directors on the board to improve their monitoring effectiveness. Olaleye John Olatunde | Amafa Etupu Oluwafunmilayo "Corporate Governance on Earnings Management in Listed Deposit Money Bank in Nigeria" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-4 | Issue-1 , December 2019, URL: https://www.ijtsrd.com/papers/ijtsrd29515.pdfPaper URL: https://www.ijtsrd.com/management/other/29515/corporate-governance-on-earnings-management-in-listed-deposit-money-bank-in-nigeria/olaleye-john-olatunde
Post privatization Corporate Governance and the challenges of working capital...inventionjournals
The paper examines the impact of Corporate Governance on liquidity ratio of Ashaka Cement Company. The variables studied were activity ratio as dependent variables and Corporate Governance proxies as independent variables. Data was collected from the secondary sources, and the statistical tools employed in the Methodology were; Performance Trend Analysis and OLS regression. Trend Analysis result suggests that, liquidity ratio was higher pre privatization periods. Inferential Statistics Result suggests that, minority ownership, board size and privatization have positive and significant impact on liquidity ratio of Ashaka Cement Company, while, Total Market Value of Shares and percentage of non executive directors have negative and significant impact on liquidity ratio of Ashaka Cement Company. However, workforce has positive and insignificant impact on liquidity ratio. The study concludes that, corporate governance has significant impact on liquidity ratio of Ashaka Cement Company. However, unfavourable macroeconomic environment militated against its efficiency. The study recommends that, Nigerian government should ensure favorable macroeconomic environment, Foreign Investors should secure global cement market opportunities to justify investment and enhance companies’ earnings The findings may useful to corporate stakeholders and government policy makers
International Journal of Business and Management Invention (IJBMI)inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online
FINANCIAL LITERACY, CASH MANAGEMENT AND BUSINESS GROWTH IN KAMPALA CITY COUNC...ectijjournal
The study sought to establish the relationship between financial literacy, cash management and business growth in Kampala city council authority. The study design used was descriptive and correlation in nature. The study revealed a moderately high level of financial literacy, a moderate level of cash management and a moderately high level of business growth among the businesses investigated. Financial literacy confirmed in adequate knowledge on how to expand and capitalize money in addition to warranting a portion of their regular income saved in assets. It was noted that most businesses grow out of paying their debtors promptly, using loaned capital efficiently and perhaps cash planning practices. In the long run, most businesses end up into bankruptcy associated to using borrowed funds for improving standards of living. It is a common practice in Uganda for one to emerge as a promising investor, live a posh life and registered in bankruptcy within less than a decade of his business career. The study recommended that the Private Sector Uganda, Uganda Manufacturers’ Association, Uganda Chamber of Commerce; and other trade organizations should include training business men and women around the country on sound financial management. There is need to further sensitize the public and business owners in particular on the risks associated with borrowed capital. Business owners should further avoid running for credit because it is cheap and available. Business owners should always align their borrowed capital with business objectives lest they divert funds intended for business growth into improving their standards of living by spending lavishly.
Entrepreneurship Orientation, Market Orientation, Business Strategy, Managem...inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
Growth Implications of Managerial Finance in Business: Empirical Evidence fro...Premier Publishers
The effective management of business finance is critically dependent on the proper understanding of the interrelationships between different dimensions of financial management and growth performance of the business. This study examines the relationship between selected managerial finance functions and growth of business in Akwa Ibom State, Nigeria using Pearson’s Product Moment Correlation model. The results show that all the managerial functions selected for the study are positively correlated with growth, but with varying levels of significance. The implication of the results is that, given the diversity and specialized nature of managerial finance, every dimension of management relating to financial resources should be taken seriously to ensure long-term sustainable growth of business.
Managerial oversight rather than inadequate finance has been ascribed as the necessitating fundamental to business failure in less-developed countries. Finance plays a crucial role in the establishment, growth and sustainability of business. However, it is delicate; its inadequacy or excess is as dangerous asineffective management. This paper examines the importance of finance function, the imperativeness of financial strategies and the special role of finance manager in business sustainability. In addition, a reflection is made of the financial management practicesof businesses in African countries, and recommendations made for changes required for their sustainability.
Corporate Governance on Earnings Management in Listed Deposit Money Bank in N...ijtsrd
The increase in the manipulation of accounting records and collapse of some Nigerian Deposit Money Banks have left question in the mind of researchers on the role of corporate governance. This paper was carried out to examine the impact of corporate governance attributes on earnings management of listed Deposit Money Banks from 2009 to 2017. The study used a sample size of thirteen 13 banks. The dependent variable was measured using Discretionary Loan Loss Provision Model by Chang, Shen and Fang 2008 . Correlational design was employed the secondary data was obtained from the annual reports of the firms and Nigerian Stock Exchange website. The results from the multiple regression analysis proved that board size has positive and significant impact on earnings management board independence has negative and significant impact on earnings management while board of directors' ownership has insignificant impact on earnings management. The study concludes that effective monitoring role of independence directors will constrain the opportunistic behavior by managers. The paper therefore recommends among others that banks should increase the numbers of independent directors on the board to improve their monitoring effectiveness. Olaleye John Olatunde | Amafa Etupu Oluwafunmilayo "Corporate Governance on Earnings Management in Listed Deposit Money Bank in Nigeria" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-4 | Issue-1 , December 2019, URL: https://www.ijtsrd.com/papers/ijtsrd29515.pdfPaper URL: https://www.ijtsrd.com/management/other/29515/corporate-governance-on-earnings-management-in-listed-deposit-money-bank-in-nigeria/olaleye-john-olatunde
Post privatization Corporate Governance and the challenges of working capital...inventionjournals
The paper examines the impact of Corporate Governance on liquidity ratio of Ashaka Cement Company. The variables studied were activity ratio as dependent variables and Corporate Governance proxies as independent variables. Data was collected from the secondary sources, and the statistical tools employed in the Methodology were; Performance Trend Analysis and OLS regression. Trend Analysis result suggests that, liquidity ratio was higher pre privatization periods. Inferential Statistics Result suggests that, minority ownership, board size and privatization have positive and significant impact on liquidity ratio of Ashaka Cement Company, while, Total Market Value of Shares and percentage of non executive directors have negative and significant impact on liquidity ratio of Ashaka Cement Company. However, workforce has positive and insignificant impact on liquidity ratio. The study concludes that, corporate governance has significant impact on liquidity ratio of Ashaka Cement Company. However, unfavourable macroeconomic environment militated against its efficiency. The study recommends that, Nigerian government should ensure favorable macroeconomic environment, Foreign Investors should secure global cement market opportunities to justify investment and enhance companies’ earnings The findings may useful to corporate stakeholders and government policy makers
International Journal of Business and Management Invention (IJBMI)inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online
FINANCIAL LITERACY, CASH MANAGEMENT AND BUSINESS GROWTH IN KAMPALA CITY COUNC...ectijjournal
The study sought to establish the relationship between financial literacy, cash management and business growth in Kampala city council authority. The study design used was descriptive and correlation in nature. The study revealed a moderately high level of financial literacy, a moderate level of cash management and a moderately high level of business growth among the businesses investigated. Financial literacy confirmed in adequate knowledge on how to expand and capitalize money in addition to warranting a portion of their regular income saved in assets. It was noted that most businesses grow out of paying their debtors promptly, using loaned capital efficiently and perhaps cash planning practices. In the long run, most businesses end up into bankruptcy associated to using borrowed funds for improving standards of living. It is a common practice in Uganda for one to emerge as a promising investor, live a posh life and registered in bankruptcy within less than a decade of his business career. The study recommended that the Private Sector Uganda, Uganda Manufacturers’ Association, Uganda Chamber of Commerce; and other trade organizations should include training business men and women around the country on sound financial management. There is need to further sensitize the public and business owners in particular on the risks associated with borrowed capital. Business owners should further avoid running for credit because it is cheap and available. Business owners should always align their borrowed capital with business objectives lest they divert funds intended for business growth into improving their standards of living by spending lavishly.
Entrepreneurship Orientation, Market Orientation, Business Strategy, Managem...inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
This research work investigated the influence of firm size on the financial performance of deposit money banks quoted on the Nigerian stock exchange. The research work is necessitated by the need to find the factors that respond positively or negatively to the financial performance of deposit money banks in Nigeria. Five deposit money banks were sampled with the aid of Taro Yemeni sampling technique to represent the entire banking industry in Nigeria. The firm size proxied by log of total assets represents the explanatory variable while the financial performance measured by profitability proxied by return on asset is the dependent variable. The analysis was conducted using the pooled OLS regression and fixed effect/random effect regression with the aid of STATA for panel regression. In addition, descriptive statistics and correlation analysis were computed. The finding of the study indicates that firm size insignificantly negatively influenced financial performance as a result of diseconomies of scale. The study therefore recommends that the industry should minimize the cost of expansion and enjoy maximum benefits of economies of scale in addition to other factors that may stimulate financial performance should be considered instead of the firm size that indicate insignificantly negative effect.
DETERMINANTS OF SMALL BUSINESS PERFORMANCE IN OYE LOCAL GOVERNMENT, EKITI STA...AJHSSR Journal
ABSTRACT: This study was design to access the factors determining the performance of small and medium
enterprises (SMEs) in Oye Local Government, Ekiti State, Nigeria. A total of one hundred (100) questionnaires
were administered to respondents of which one hundred fifty (100) were also returned.Descriptive survey design
was used for the study. The population of the study is one thousand two hundred and forty (1, 240), a sample
size of one hundred (100). From the strata, random selection technique was applied in choosing the number that
will represent the sample size. Data were generated using questionnaire. Data collected were presented in tables
and analyzed using descriptive statistical tool was used to analyze the data collected. The results of the analysis
show that both financial and technological determinants are significant while infrastructural determinants were
not. It is recommended that government should improve on the infrastructural facilities in the local government
to improve the performance of the SMEs.
KEYWORDS: SMEs, Determinants, Performances
Confirmatory Analysis of Primary Business Function Learning For Small Industryinventionjournals
This study has the purpose to examine the unidimension construct or latent variable from Primary Business Functions Learning of Small Industries Onix and Marble in Tulungagung Region. Confirmatory Factor Analysis (CFA) is used to examine the unidimensionality of construct learning of the Primary Business Function.Important findings generated through hypothesis testing model measurement is that construct learning of the Primary Business function can be measured validly and reliably by the dimensions of Finance, Production, and MarketingLearning Experiences. These findings prove that the dimensions of Finance Learning, Production,and Marketing were credible or systemic to constructlatent variables for the Primary Business Functions. It is indicated by the regression coefficients of all the dimensions of Primary Business Functions Learning Experiences that have a value of more than 2 CR, p-value less than 0.05, and with a coefficient of three dimensions of a high standard, which is 0.968 for the Learning Financial Functions dimension, and 0.992 for the dimension of Learning Function Production, and Marketing
Finance is the lifeblood and lifeline of any business entity either commercial or non-commercial. The
Survival, Stability and Sustainability of a firm is highly associated with its financial wellness. It can be observed through its ability to pay(re) short-term as well as long term liabilities, meeting the regular financial obligations, to increase the value of firm and ability to generate profit. Financial analysis, evaluation, and assessment help in determines the financial position and financial strength of a firm. Among the plenty of methods and tolls available for financial performance, ratio analysis is more useful and meaningful. These ratios make it possible to analyze the evolution of the financial situation of a firm (trend analysis), cross-sectional analysis and comparative analysis.
Effect of Audit Quality on the Financial Performance of Deposit Money Banks i...ijtsrd
This study investigated the effect of audit quality on the financial performance of deposit money banks in Nigeria. The Ex-post Facto research design was adopted. The Judgmental sampling was adopted to selected 14 from the 22 listed Deposit Money Banks on the Nigerian Stock Exchange. The data collected from annual reports and accounts of deposit money banks were analyzed using the simple regression and correlation analyses. Findings f revealed that Audit Committee Size ACSIZ has a positive but insignificant effect on the financial performance of deposit money banks in Nigeria. Audit Committee Independence ACIND and Audit Committee Meetings ACM both have a negative and insignificant effect on the financial performance of quoted deposit money banks in Nigeria while Auditors Size BIG4A has a positive and statistically significant effect on the financial performance of quoted banks in Nigeria. Based on this, the study recommended among others that the management of the deposit money banks in Nigeria should employ the services of one of the big audit firms and where this is not possible, go for an audit firm whose character and integrity is beyond question. Muotolu, Peace Chikwemma | E. O. Nwadialor "Effect of Audit Quality on the Financial Performance of Deposit Money Banks in Nigeria" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-3 | Issue-2 , February 2019, URL: https://www.ijtsrd.com/papers/ijtsrd21557.pdf
Paper URL: https://www.ijtsrd.com/management/accounting-and-finance/21557/effect-of-audit-quality-on-the-financial-performance-of-deposit-money-banks-in-nigeria/muotolu-peace-chikwemma
Corporate debt policy remained a significant, but a challenging decision for managers entrusted with the responsibility to improve the value of the firm. Thus, this study examines the factors influencing the capital structure decisions of firms in Nigeria. The study employs a panel data regression model to analyze data from firms in Nigeria for the period 2011 to 2015. The result of the empirical analysis reveals that firms in Nigeria have a preference to finance economic operations from retained earnings and the use of short-term debt on rollover basis. The finding of this study confirms that debt decreases with profitability and growth opportunities. The findings show that asset tangibility and firm size have a positive and significant relationship with debt policy of firms in Nigeria. The analysis also reveals that managerial ownership has a negative and significant relationship with debt ratio of firms in Nigeria. The study shows a non-significant positive relationship between non-debt tax shields and debt. The study demonstrates that the trade-off and pecking order theories both explains the factors influencing capital structure decisions of firms in Nigeria. Therefore, this study suggests the need for stakeholders to develop the financial markets and make it accessible for firms to obtain long-term financing for economic growth and development.
Effective sources and uses of finance is one of the primary activities for the success of a
business, where imprudent financing practices have been identified as a key constraint for the development
of the SME sector. For instance, the empirical evidence suggests that uncertainties of the SMEs due tolack
of skills and knowledgeable workers, economic fluctuations and financingcosts at firm level constitutes to het
ride from proper access to formal financing
Characteristics of Nigerian Deposit Money Banks and Their Financial Outcomeijtsrd
The purpose of this research was to examine the connections between DMB profitability and various company characteristics in Nigeria. This study used panel data regression to evaluate five hypotheses on how market share, liquidity, credit risk, interest rate spread, and leverage affect bank profitability. Secondary data was gathered from the financial statements of the 19 deposit money banks listed on the international and local markets of the Nigerian Stock Exchange NSE between 2012 and 2021. The success of Nigerian banks is strongly influenced by their market share, liquidity, interest rate spread, and leverage. There was a connection between credit risk and ROA, however it was weak and not statistically significant. The report recommended that the Central Bank of Nigeria CBN create policies to enable banks increase their market share, rather than seeking to limit the number of firms in the banking sector. Dr. Confidence J. Ihenyen | Okpobo, Timinipre Joseph | Monron, Ezekiel Lawrence "Characteristics of Nigerian Deposit Money Banks and Their Financial Outcome" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-7 | Issue-3 , June 2023, URL: https://www.ijtsrd.com.com/papers/ijtsrd56303.pdf Paper URL: https://www.ijtsrd.com.com/management/accounting-and-finance/56303/characteristics-of-nigerian-deposit-money-banks-and-their-financial-outcome/dr-confidence-j-ihenyen
Corporate governance is of great importance for financial performance. Corporate governance issues have attracted public interest in the financial sector both locally and internationally after waves of corporate rip-offs and failures that almost led to loss of confidence in the finance sector. The general objective of this study was to determine the effect of corporate governance on financial performance of Savings and Credit Co-operatives in Kenya. The study adopted a descriptive research design. The study targeted a population of 65 active Savings and credit Co-operatives operating in Embu County. A sample size of 57 Savings and Credit Co-operatives was used in this study. Stratified sampling technique was used to select the sample. Primary data was collected using self-administered semi-structured questionnaires while secondary data was obtained from financial statements and periodicals using a record survey sheet. Pre-testing of research tool was conducted before the actual data collection was carried, to determine the reliability of the questionnaire by use of a Cronbach‘s alpha, statistical coefficient, while the validity was tested to ensure that the questions in the questionnaire provides adequate coverage to the investigative questions. Correlation and multiple regression analysis was used to establish the relationship between independent and dependent variables. The study findings indicated that corporate governance positively affected the financial performance. In specific the board composition and corporate risk management for SACCOs had a positive effect on the financial performances of the SACCOs. The study is beneficial to SACCOs management in improving the performance of Savings and Credit Co-operatives and enabling them to compete globally. The study recommends gender parity consideration and balanced mix of skilled board members during appointments of the board members. The recommendations are important to the government, especially the department of cooperatives in strengthening policies regarding cooperative societies.
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
John Mathiang, Kartika Susilowati Manufacturing companies Bank and Policy 3 ...PublisherNasir
John Mathiang Machar Mathiang, Kartika Dewi Sri Susilowati (2022). The effect of financial ratios on the performance of manufacturing companies (case study on food and beverages companies listed on Idx in 2018-2020). Bank and Policy 2(3): 58-70
Factors Influencing the Level of Compliance with International Financial Re...Premier Publishers
Compliance with International Financial Reporting Standards (IFRS) by Small and Medium-Scale enterprises (SMEs) has become a topical issue in accounting research, and it has become necessary in order to enhance the ability of SMEs to live up to international best business practices. SMEs are pivotal to the growth and development of any nation's economy. Many countries are opening their doors to foreign investments due to globalization and businesses are expanding beyond their national borders. Therefore, there is a need for the SME sector in Nigeria to be prepared and take advantage of this phenomenon for their growth by ensuring that their financial reports comply with the disclosure requirements of IFRS. This study assessed the factors that influence the levels of compliance with IFRS by SMEs in Ondo State, Nigeria. A cross sectional survey of one hundred SMEs in Akure was conducted through structured questionnaire. The data was analyzed using Single-Factor Descriptive Analysis, Weighted Mean Scoring, Principal Component Analysis and Regression Analysis. The study found there was low level of compliance by the SMEs in the study area and major factors influencing compliance are proper accounting records submission of accounting statements to regulatory bodies and knowledge of IFRS with mean ratings of 3.29, 3.27, 3.26 and 3.24 respectively. It concluded that there is need for the SMEs in the study area to comply with the disclosure requirements of IFRS in order to improve their capitalization and profitability. It is recommended that Financial Reporting Act in Nigeria is reviewed to make compliance of SMEs with IFRS mandatory and that Financial Reporting Council should ensure proper capacity development to enable SMEs compliance.
This research work investigated the influence of firm size on the financial performance of deposit money banks quoted on the Nigerian stock exchange. The research work is necessitated by the need to find the factors that respond positively or negatively to the financial performance of deposit money banks in Nigeria. Five deposit money banks were sampled with the aid of Taro Yemeni sampling technique to represent the entire banking industry in Nigeria. The firm size proxied by log of total assets represents the explanatory variable while the financial performance measured by profitability proxied by return on asset is the dependent variable. The analysis was conducted using the pooled OLS regression and fixed effect/random effect regression with the aid of STATA for panel regression. In addition, descriptive statistics and correlation analysis were computed. The finding of the study indicates that firm size insignificantly negatively influenced financial performance as a result of diseconomies of scale. The study therefore recommends that the industry should minimize the cost of expansion and enjoy maximum benefits of economies of scale in addition to other factors that may stimulate financial performance should be considered instead of the firm size that indicate insignificantly negative effect.
DETERMINANTS OF SMALL BUSINESS PERFORMANCE IN OYE LOCAL GOVERNMENT, EKITI STA...AJHSSR Journal
ABSTRACT: This study was design to access the factors determining the performance of small and medium
enterprises (SMEs) in Oye Local Government, Ekiti State, Nigeria. A total of one hundred (100) questionnaires
were administered to respondents of which one hundred fifty (100) were also returned.Descriptive survey design
was used for the study. The population of the study is one thousand two hundred and forty (1, 240), a sample
size of one hundred (100). From the strata, random selection technique was applied in choosing the number that
will represent the sample size. Data were generated using questionnaire. Data collected were presented in tables
and analyzed using descriptive statistical tool was used to analyze the data collected. The results of the analysis
show that both financial and technological determinants are significant while infrastructural determinants were
not. It is recommended that government should improve on the infrastructural facilities in the local government
to improve the performance of the SMEs.
KEYWORDS: SMEs, Determinants, Performances
Confirmatory Analysis of Primary Business Function Learning For Small Industryinventionjournals
This study has the purpose to examine the unidimension construct or latent variable from Primary Business Functions Learning of Small Industries Onix and Marble in Tulungagung Region. Confirmatory Factor Analysis (CFA) is used to examine the unidimensionality of construct learning of the Primary Business Function.Important findings generated through hypothesis testing model measurement is that construct learning of the Primary Business function can be measured validly and reliably by the dimensions of Finance, Production, and MarketingLearning Experiences. These findings prove that the dimensions of Finance Learning, Production,and Marketing were credible or systemic to constructlatent variables for the Primary Business Functions. It is indicated by the regression coefficients of all the dimensions of Primary Business Functions Learning Experiences that have a value of more than 2 CR, p-value less than 0.05, and with a coefficient of three dimensions of a high standard, which is 0.968 for the Learning Financial Functions dimension, and 0.992 for the dimension of Learning Function Production, and Marketing
Finance is the lifeblood and lifeline of any business entity either commercial or non-commercial. The
Survival, Stability and Sustainability of a firm is highly associated with its financial wellness. It can be observed through its ability to pay(re) short-term as well as long term liabilities, meeting the regular financial obligations, to increase the value of firm and ability to generate profit. Financial analysis, evaluation, and assessment help in determines the financial position and financial strength of a firm. Among the plenty of methods and tolls available for financial performance, ratio analysis is more useful and meaningful. These ratios make it possible to analyze the evolution of the financial situation of a firm (trend analysis), cross-sectional analysis and comparative analysis.
Effect of Audit Quality on the Financial Performance of Deposit Money Banks i...ijtsrd
This study investigated the effect of audit quality on the financial performance of deposit money banks in Nigeria. The Ex-post Facto research design was adopted. The Judgmental sampling was adopted to selected 14 from the 22 listed Deposit Money Banks on the Nigerian Stock Exchange. The data collected from annual reports and accounts of deposit money banks were analyzed using the simple regression and correlation analyses. Findings f revealed that Audit Committee Size ACSIZ has a positive but insignificant effect on the financial performance of deposit money banks in Nigeria. Audit Committee Independence ACIND and Audit Committee Meetings ACM both have a negative and insignificant effect on the financial performance of quoted deposit money banks in Nigeria while Auditors Size BIG4A has a positive and statistically significant effect on the financial performance of quoted banks in Nigeria. Based on this, the study recommended among others that the management of the deposit money banks in Nigeria should employ the services of one of the big audit firms and where this is not possible, go for an audit firm whose character and integrity is beyond question. Muotolu, Peace Chikwemma | E. O. Nwadialor "Effect of Audit Quality on the Financial Performance of Deposit Money Banks in Nigeria" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-3 | Issue-2 , February 2019, URL: https://www.ijtsrd.com/papers/ijtsrd21557.pdf
Paper URL: https://www.ijtsrd.com/management/accounting-and-finance/21557/effect-of-audit-quality-on-the-financial-performance-of-deposit-money-banks-in-nigeria/muotolu-peace-chikwemma
Corporate debt policy remained a significant, but a challenging decision for managers entrusted with the responsibility to improve the value of the firm. Thus, this study examines the factors influencing the capital structure decisions of firms in Nigeria. The study employs a panel data regression model to analyze data from firms in Nigeria for the period 2011 to 2015. The result of the empirical analysis reveals that firms in Nigeria have a preference to finance economic operations from retained earnings and the use of short-term debt on rollover basis. The finding of this study confirms that debt decreases with profitability and growth opportunities. The findings show that asset tangibility and firm size have a positive and significant relationship with debt policy of firms in Nigeria. The analysis also reveals that managerial ownership has a negative and significant relationship with debt ratio of firms in Nigeria. The study shows a non-significant positive relationship between non-debt tax shields and debt. The study demonstrates that the trade-off and pecking order theories both explains the factors influencing capital structure decisions of firms in Nigeria. Therefore, this study suggests the need for stakeholders to develop the financial markets and make it accessible for firms to obtain long-term financing for economic growth and development.
Effective sources and uses of finance is one of the primary activities for the success of a
business, where imprudent financing practices have been identified as a key constraint for the development
of the SME sector. For instance, the empirical evidence suggests that uncertainties of the SMEs due tolack
of skills and knowledgeable workers, economic fluctuations and financingcosts at firm level constitutes to het
ride from proper access to formal financing
Characteristics of Nigerian Deposit Money Banks and Their Financial Outcomeijtsrd
The purpose of this research was to examine the connections between DMB profitability and various company characteristics in Nigeria. This study used panel data regression to evaluate five hypotheses on how market share, liquidity, credit risk, interest rate spread, and leverage affect bank profitability. Secondary data was gathered from the financial statements of the 19 deposit money banks listed on the international and local markets of the Nigerian Stock Exchange NSE between 2012 and 2021. The success of Nigerian banks is strongly influenced by their market share, liquidity, interest rate spread, and leverage. There was a connection between credit risk and ROA, however it was weak and not statistically significant. The report recommended that the Central Bank of Nigeria CBN create policies to enable banks increase their market share, rather than seeking to limit the number of firms in the banking sector. Dr. Confidence J. Ihenyen | Okpobo, Timinipre Joseph | Monron, Ezekiel Lawrence "Characteristics of Nigerian Deposit Money Banks and Their Financial Outcome" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-7 | Issue-3 , June 2023, URL: https://www.ijtsrd.com.com/papers/ijtsrd56303.pdf Paper URL: https://www.ijtsrd.com.com/management/accounting-and-finance/56303/characteristics-of-nigerian-deposit-money-banks-and-their-financial-outcome/dr-confidence-j-ihenyen
Corporate governance is of great importance for financial performance. Corporate governance issues have attracted public interest in the financial sector both locally and internationally after waves of corporate rip-offs and failures that almost led to loss of confidence in the finance sector. The general objective of this study was to determine the effect of corporate governance on financial performance of Savings and Credit Co-operatives in Kenya. The study adopted a descriptive research design. The study targeted a population of 65 active Savings and credit Co-operatives operating in Embu County. A sample size of 57 Savings and Credit Co-operatives was used in this study. Stratified sampling technique was used to select the sample. Primary data was collected using self-administered semi-structured questionnaires while secondary data was obtained from financial statements and periodicals using a record survey sheet. Pre-testing of research tool was conducted before the actual data collection was carried, to determine the reliability of the questionnaire by use of a Cronbach‘s alpha, statistical coefficient, while the validity was tested to ensure that the questions in the questionnaire provides adequate coverage to the investigative questions. Correlation and multiple regression analysis was used to establish the relationship between independent and dependent variables. The study findings indicated that corporate governance positively affected the financial performance. In specific the board composition and corporate risk management for SACCOs had a positive effect on the financial performances of the SACCOs. The study is beneficial to SACCOs management in improving the performance of Savings and Credit Co-operatives and enabling them to compete globally. The study recommends gender parity consideration and balanced mix of skilled board members during appointments of the board members. The recommendations are important to the government, especially the department of cooperatives in strengthening policies regarding cooperative societies.
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
John Mathiang, Kartika Susilowati Manufacturing companies Bank and Policy 3 ...PublisherNasir
John Mathiang Machar Mathiang, Kartika Dewi Sri Susilowati (2022). The effect of financial ratios on the performance of manufacturing companies (case study on food and beverages companies listed on Idx in 2018-2020). Bank and Policy 2(3): 58-70
Factors Influencing the Level of Compliance with International Financial Re...Premier Publishers
Compliance with International Financial Reporting Standards (IFRS) by Small and Medium-Scale enterprises (SMEs) has become a topical issue in accounting research, and it has become necessary in order to enhance the ability of SMEs to live up to international best business practices. SMEs are pivotal to the growth and development of any nation's economy. Many countries are opening their doors to foreign investments due to globalization and businesses are expanding beyond their national borders. Therefore, there is a need for the SME sector in Nigeria to be prepared and take advantage of this phenomenon for their growth by ensuring that their financial reports comply with the disclosure requirements of IFRS. This study assessed the factors that influence the levels of compliance with IFRS by SMEs in Ondo State, Nigeria. A cross sectional survey of one hundred SMEs in Akure was conducted through structured questionnaire. The data was analyzed using Single-Factor Descriptive Analysis, Weighted Mean Scoring, Principal Component Analysis and Regression Analysis. The study found there was low level of compliance by the SMEs in the study area and major factors influencing compliance are proper accounting records submission of accounting statements to regulatory bodies and knowledge of IFRS with mean ratings of 3.29, 3.27, 3.26 and 3.24 respectively. It concluded that there is need for the SMEs in the study area to comply with the disclosure requirements of IFRS in order to improve their capitalization and profitability. It is recommended that Financial Reporting Act in Nigeria is reviewed to make compliance of SMEs with IFRS mandatory and that Financial Reporting Council should ensure proper capacity development to enable SMEs compliance.
Artificial Reefs by Kuddle Life Foundation - May 2024punit537210
Situated in Pondicherry, India, Kuddle Life Foundation is a charitable, non-profit and non-governmental organization (NGO) dedicated to improving the living standards of coastal communities and simultaneously placing a strong emphasis on the protection of marine ecosystems.
One of the key areas we work in is Artificial Reefs. This presentation captures our journey so far and our learnings. We hope you get as excited about marine conservation and artificial reefs as we are.
Please visit our website: https://kuddlelife.org
Our Instagram channel:
@kuddlelifefoundation
Our Linkedin Page:
https://www.linkedin.com/company/kuddlelifefoundation/
and write to us if you have any questions:
info@kuddlelife.org
"Understanding the Carbon Cycle: Processes, Human Impacts, and Strategies for...MMariSelvam4
The carbon cycle is a critical component of Earth's environmental system, governing the movement and transformation of carbon through various reservoirs, including the atmosphere, oceans, soil, and living organisms. This complex cycle involves several key processes such as photosynthesis, respiration, decomposition, and carbon sequestration, each contributing to the regulation of carbon levels on the planet.
Human activities, particularly fossil fuel combustion and deforestation, have significantly altered the natural carbon cycle, leading to increased atmospheric carbon dioxide concentrations and driving climate change. Understanding the intricacies of the carbon cycle is essential for assessing the impacts of these changes and developing effective mitigation strategies.
By studying the carbon cycle, scientists can identify carbon sources and sinks, measure carbon fluxes, and predict future trends. This knowledge is crucial for crafting policies aimed at reducing carbon emissions, enhancing carbon storage, and promoting sustainable practices. The carbon cycle's interplay with climate systems, ecosystems, and human activities underscores its importance in maintaining a stable and healthy planet.
In-depth exploration of the carbon cycle reveals the delicate balance required to sustain life and the urgent need to address anthropogenic influences. Through research, education, and policy, we can work towards restoring equilibrium in the carbon cycle and ensuring a sustainable future for generations to come.
Willie Nelson Net Worth: A Journey Through Music, Movies, and Business Venturesgreendigital
Willie Nelson is a name that resonates within the world of music and entertainment. Known for his unique voice, and masterful guitar skills. and an extraordinary career spanning several decades. Nelson has become a legend in the country music scene. But, his influence extends far beyond the realm of music. with ventures in acting, writing, activism, and business. This comprehensive article delves into Willie Nelson net worth. exploring the various facets of his career that have contributed to his large fortune.
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Introduction
Willie Nelson net worth is a testament to his enduring influence and success in many fields. Born on April 29, 1933, in Abbott, Texas. Nelson's journey from a humble beginning to becoming one of the most iconic figures in American music is nothing short of inspirational. His net worth, which estimated to be around $25 million as of 2024. reflects a career that is as diverse as it is prolific.
Early Life and Musical Beginnings
Humble Origins
Willie Hugh Nelson was born during the Great Depression. a time of significant economic hardship in the United States. Raised by his grandparents. Nelson found solace and inspiration in music from an early age. His grandmother taught him to play the guitar. setting the stage for what would become an illustrious career.
First Steps in Music
Nelson's initial foray into the music industry was fraught with challenges. He moved to Nashville, Tennessee, to pursue his dreams, but success did not come . Working as a songwriter, Nelson penned hits for other artists. which helped him gain a foothold in the competitive music scene. His songwriting skills contributed to his early earnings. laying the foundation for his net worth.
Rise to Stardom
Breakthrough Albums
The 1970s marked a turning point in Willie Nelson's career. His albums "Shotgun Willie" (1973), "Red Headed Stranger" (1975). and "Stardust" (1978) received critical acclaim and commercial success. These albums not only solidified his position in the country music genre. but also introduced his music to a broader audience. The success of these albums played a crucial role in boosting Willie Nelson net worth.
Iconic Songs
Willie Nelson net worth is also attributed to his extensive catalog of hit songs. Tracks like "Blue Eyes Crying in the Rain," "On the Road Again," and "Always on My Mind" have become timeless classics. These songs have not only earned Nelson large royalties but have also ensured his continued relevance in the music industry.
Acting and Film Career
Hollywood Ventures
In addition to his music career, Willie Nelson has also made a mark in Hollywood. His distinctive personality and on-screen presence have landed him roles in several films and television shows. Notable appearances include roles in "The Electric Horseman" (1979), "Honeysuckle Rose" (1980), and "Barbarosa" (1982). These acting gigs have added a significant amount to Willie Nelson net worth.
Television Appearances
Nelson's char
Micro RNA genes and their likely influence in rice (Oryza sativa L.) dynamic ...Open Access Research Paper
Micro RNAs (miRNAs) are small non-coding RNAs molecules having approximately 18-25 nucleotides, they are present in both plants and animals genomes. MiRNAs have diverse spatial expression patterns and regulate various developmental metabolisms, stress responses and other physiological processes. The dynamic gene expression playing major roles in phenotypic differences in organisms are believed to be controlled by miRNAs. Mutations in regions of regulatory factors, such as miRNA genes or transcription factors (TF) necessitated by dynamic environmental factors or pathogen infections, have tremendous effects on structure and expression of genes. The resultant novel gene products presents potential explanations for constant evolving desirable traits that have long been bred using conventional means, biotechnology or genetic engineering. Rice grain quality, yield, disease tolerance, climate-resilience and palatability properties are not exceptional to miRN Asmutations effects. There are new insights courtesy of high-throughput sequencing and improved proteomic techniques that organisms’ complexity and adaptations are highly contributed by miRNAs containing regulatory networks. This article aims to expound on how rice miRNAs could be driving evolution of traits and highlight the latest miRNA research progress. Moreover, the review accentuates miRNAs grey areas to be addressed and gives recommendations for further studies.
Natural farming @ Dr. Siddhartha S. Jena.pptxsidjena70
A brief about organic farming/ Natural farming/ Zero budget natural farming/ Subash Palekar Natural farming which keeps us and environment safe and healthy. Next gen Agricultural practices of chemical free farming.
Diabetes is a rapidly and serious health problem in Pakistan. This chronic condition is associated with serious long-term complications, including higher risk of heart disease and stroke. Aggressive treatment of hypertension and hyperlipideamia can result in a substantial reduction in cardiovascular events in patients with diabetes 1. Consequently pharmacist-led diabetes cardiovascular risk (DCVR) clinics have been established in both primary and secondary care sites in NHS Lothian during the past five years. An audit of the pharmaceutical care delivery at the clinics was conducted in order to evaluate practice and to standardize the pharmacists’ documentation of outcomes. Pharmaceutical care issues (PCI) and patient details were collected both prospectively and retrospectively from three DCVR clinics. The PCI`s were categorized according to a triangularised system consisting of multiple categories. These were ‘checks’, ‘changes’ (‘change in drug therapy process’ and ‘change in drug therapy’), ‘drug therapy problems’ and ‘quality assurance descriptors’ (‘timer perspective’ and ‘degree of change’). A verified medication assessment tool (MAT) for patients with chronic cardiovascular disease was applied to the patients from one of the clinics. The tool was used to quantify PCI`s and pharmacist actions that were centered on implementing or enforcing clinical guideline standards. A database was developed to be used as an assessment tool and to standardize the documentation of achievement of outcomes. Feedback on the audit of the pharmaceutical care delivery and the database was received from the DCVR clinic pharmacist at a focus group meeting.
Characterization and the Kinetics of drying at the drying oven and with micro...Open Access Research Paper
The objective of this work is to contribute to valorization de Nephelium lappaceum by the characterization of kinetics of drying of seeds of Nephelium lappaceum. The seeds were dehydrated until a constant mass respectively in a drying oven and a microwawe oven. The temperatures and the powers of drying are respectively: 50, 60 and 70°C and 140, 280 and 420 W. The results show that the curves of drying of seeds of Nephelium lappaceum do not present a phase of constant kinetics. The coefficients of diffusion vary between 2.09.10-8 to 2.98. 10-8m-2/s in the interval of 50°C at 70°C and between 4.83×10-07 at 9.04×10-07 m-8/s for the powers going of 140 W with 420 W the relation between Arrhenius and a value of energy of activation of 16.49 kJ. mol-1 expressed the effect of the temperature on effective diffusivity.
UNDERSTANDING WHAT GREEN WASHING IS!.pdfJulietMogola
Many companies today use green washing to lure the public into thinking they are conserving the environment but in real sense they are doing more harm. There have been such several cases from very big companies here in Kenya and also globally. This ranges from various sectors from manufacturing and goes to consumer products. Educating people on greenwashing will enable people to make better choices based on their analysis and not on what they see on marketing sites.
1. Financial literacy, in the brightness of the new business reality, is the capability to adequately
oversee financial resources over the life cycle and connect with effectively with financial
products and services.
Financial literacy is about discernment and makes effective decisions on utilization of financial
management (Gavigan, 2010). This is an area that requires knowledge, skill, attitude and
experience with goals to deal with the survival of the firm; profit maximization; sales
maximization; capturing a particular market share; minimizing staff turnovers and internal
conflicts; and maximizing wealth (Jacobs, 2001). It can be among the essential strategic tools to
more organize allotments of financial resources and to a considerable financial strength.
In a business, decision-making needs to be rational and be a premised on available information.
This implies that it is imperative that manager of business and individual should have a
reasonable degree of knowledge related to the available information to make good decisions.
Remund (2010) opined that financial literacy is the degree to which one understands important
financial concepts and possesses the capacity and confidence to handle personal funds of
appropriate, brief period decision-making and solid long-term financial forethought.
A significant obstacle to performance growth of sustainable small and medium scale enterprises
(SMEs) throughout the developing world is a lack of knowledge, skills, attitude and awareness to
cope and direct the finances of their organization in a hardy, transparent, and professional way.
Joo and Grable (2000) stated that the reasons why business people make inappropriate,
inadequate and ineffective financial decisions are because of the lack of personal financial
knowledge, lack of time to learn about personal financial management, complexities in financial
transactions and the extensive variety of choices in financial products/services. Lack of business
management skills can magnify financial barriers for SMEs. Low degree of financial literacy can
prevent the performance level of SMEs from adequately assessing and understanding different
financing provision, and for navigating complex loan application procedures.
Firm Performance
The concept of performance in relation to SMEs, particularly, the definition of performance will
be discussed. Performance may have two strategic outcomes that are often referred to in the
literature as firm success or failure (Eniola & Entebang, 2015a). In the management field, firm
2. performance can be interpreted as measures of good or indifferent management (Jennings &
Beaver, 1997; Sefiani & Bown, 2013), but it may occur to other reasons such as luck. The effects
of a firm’s performance depend on whether the firm has attained its goals or not (Davidsson,
2004).
Firm performance is a focal phenomenon in business management. It has been proposed in the
literature (Barney, 2002). The general performance of the organization depends on the correct
management at the three levels of management (Eniola & Entebang, 2015a). Performance can be
characterized as the firm’s ability to create acceptable outcomes and actions. However,
performance seems to be conceptualized, rationalized and measured in different ways, thus
making cross- comparison difficult.
According to Eniola and Entebang (2015a), performance is commonly employed as an index of a
firm’s health over a dedicated period. This puts performance as one of the key issues of SMEs.
The capacity to institute change in management of perceiving market opportunities, adapting to
the environment, and possessing certain managerial factors, product innovations, creativity, pro-
activeness, technological change, networking, are all critical factors to bringing about strategic
improvement in firm performance. Performance encompasses various meanings, including
growth, survival, success and competitiveness. Performance can be characterized as the firm’s
ability to create acceptable outcomes and actions (Eniola & Entebang, 2015a).
Financial literacy is seen as having the knowledge, skills and confidence to manage one's
finances well, taking into account one's economic and social circumstances”, where:
“knowledge” means having an understanding of relevant financial matters; “skills” means having
ability use that knowledge to manage one’s personal finances; and “confidence” means feeling
sufficiently poised to form choices concerning one’s personal finances (BOU, 2013).
Lusch and Laczniak (1989) defines financial performance as both intrinsic and extrinsic
economic benefits or results realized by the business or an enterprise from its engagements or
activities. It’s an organization’s value for money (English & Hoffmann, 2018). It is how best an
enterprise in creating wealth and accumulating resources and this depends on the ability of an
organization to make use of both financial and non-financial resources effectively and efficiently
to achieve its set goals and objectives of increasing revenue, firms profit as well as market
expansion.
3. Conceptually, Financial literacy is highly allied with the performance of SMEs both financially
and management wise since their performance is related to how these enterprises effectively use
mobilize resources, manage external debt as well as maintain proper records with fully
accountability. Therefore, this requires specific competences and skills in book keeping, working
management as well as financial planning among others (Ittner & Larcker, 1998). F95-p-5
2.4 Reviewof Related Literature
2.4.1 Financial performance of SMEs
Different scholars have up to conduct empirical studies on financial performance of enterprises
explaining extensively on how firms measure their financial performance (Ittner & Larcker, 1998)
Al-matari (2014) in his empirical study to establish the measures of financial performance of the
firms identified profit growth and asset turnover as measures of financial performance of the firm in
a short time and steady revenue growth rate and growth in the employment size in a long run
operations of the firm. Dewi and Rahman (2018) considered profitability also and return on assets as
the key performance indicators which play a big part in explaining any business financial status. This
21
4. funding was supported by Eniola and Entabang (2014) who also explained that sales and market
explanation for basic financial measures of any well performing firm.
Bowen, Morara and Mureithi (2009) conducted a study on the challenges facing SMEs in Nairobi.
This study employed stratified random sampling to collect data from 198 businesses using interviews
and questionnaires. The data were analyzed descriptively and presented through figures, tables and
percentages. The findings indicate that SMEs face the following challenges; inability to manage
financial systems, competition among themselves and from large firms, lack of access to credit,
cheap imports, insecurity and debt collection. Some studies, however, fail to establish the
relationship between financial literacy on transaction costs and performance of small and medium
enterprises. This is showed by a study conducted by (Hieltjes & Petrova, 2013) on transaction costs
of obtaining credit in rural Iran. Data was collected using observations, questionnaires and survey
design. Simple linear regression was used to analyze the data. The study established that the
transaction costs of receiving a loan are equivalent to nine percent of the total loan size. The study
also revealed that the contractual form, loan size, distances, and borrower peculiarities were
important determinants of transaction costs and not financial literacy.
Wamugo Mwangi, Stephen Makau and Kosimbei (2014) also conducted a study on financial literacy
investigating the relationship between capitals structures on the performance of non-financial
companies listed in the Nairobi Securities Exchange (NSE), Kenya. The study employed an
explanatory non-experimental research design. A census of 42 non-financial companies listed in the
Nairobi Securities Exchange, Kenya was taken. Feasible Generalized Least Square regression results
revealed that financial leverage had a statistically significant negative association with performance
as measured by return on assets (ROA) and return on equity (ROE). 22
5. Njoroge (2013) conducted a study on the relationship between financial literacy and business success
among SMEs in Nairobi County. The study was conducted using a qualitative survey design and data
collected using questionnaires. The data was later analyzed using descriptive statistics and simple
regression analysis. The study found out that most of the entrepreneurs in Nairobi had some financial
literacy and that in some cases those informal SMEs were highly financially literate.
Osinde (2013) conducted an empirical study to examine how business development services affect
performance of SMEs in Kissi town where he found out that business people and entrepreneurs who
access these services enjoys an improvement in sales growth and market share in different business
lines they are running. The study further found out that entrepreneurs who attend training sessions
about how to run operations in their businesses, 83.3% of these who attend such trainings report to
have their sales and profits growing as opposed to 40% of the respondents who rarely access such
services.
Otieno, Lumumba, Nyabwanga, Ojera and Alphonce (2016) in their study of the effect of provision
of micro finance on the performance of youth micro enterprises under Kenya Rural Enterprise
Program (KREP) in Kisii County using a sample of 86 youth micro enterprises established that
training in micro enterprise investment had a significant positive impact on the performance of the
microenterprises with a standardized beta coefficient of 0.281which indicated that a unit increase in
the provision of training to SSEs resulted to a 28.1% increase in performance. The study further
established that majority of the respondents were very satisfied with the provision of capital
investment and basic business skills training in micro enterprise investment. This suggests that the
business skill training accompanying the provision of micro loans most likely improves the capacity
of the entrepreneurs to use funds and hence impacts on business performance in terms of business
risk management, the results showed that respondents were moderately satisfied in terms of
achievement of business risk management skills. With the implication that the youth entrepreneurs 23
6. were inadequately equipped with knowledge and skills of business risk management hence are
unable to adequately deal with business risks and therefore in the event that such risks occur, their
micro enterprises are significantly affected.
2.4.2 Debt management literacy and Financial performance
Gathergood (2012) defined Debt management as the capability of making calculated and informed
decisions concerning debt acquisitions, usage and basic mathematical knowledge application
concerning interest compounding to everyday financial choices.
A person or business who is literate in debt management possess skills, knowledge as well as
information regarding debts and other financial matters for example understanding calculations
involved in ascertaining the interest to be paid on loans, the principal amounts and rightful and
affordable sources of such debts (Casagrande, 2016) It is the understanding of how money and assets
can be managed and financial decisions be taken and implemented in a resourceful manner (OECD,
2016). According to Barnard, Peters, and Muller (2010), household debt generally refers to an
obligation or liability that arises from credit or borrowing financial resources, commonly money, or
the use of goods and services on credit with the commitment to pay at a later date or some specific
point in the future
Several researchers have studied about debt management and performance of firms and enterprises;
Addaney, Awuah, & Afriyie, 2016; Barnard et al., 2010; Hieltjes & Petrova, 2013) and these have
established a positive relationship between debt management and financial performance of these
enterprises and reveal that individuals who are less financially literate always find challenges in ways
how they manage their personal and business debts as well as in making strategic business choices
and in a long run no business success due to limited performance whereas, those with high level of
financial literacy have thrived in business because they find it easy to manage their finances, perform
24
7. better in the stock and exchange market and usually acquire less costly debts avoiding high interest
payments thus achieving growth for their ventures (Lusardi and Mitchell, 2015).
Addaney et al., (2016) have observed and concluded that improper debt management has the capacity
to cause poor performance of small-scale enterprises. It is indeed that majority of the studies
conducted have mainly focused on large scale business in most developed and developing economies
excluding less developed ones (Coleman & Cohn, 2001) yet recently, there has been an increase in
the recognition of the role played by small scale firms in national economies (World Bank, 2018).
Their contribution has mainly been evidenced in job creation for ever increasing world population,
increasing house hold revenues, as well as poverty eradication in most of development economies as
evidenced by the extent at which these enterprises are now being included in their development plans
(Coleman & Cohn, 2001).
Through such plans, support structures are provided for the growth of the small-scale firms’
including funding and concessional loans, usually at concessionary rates. Meanwhile, Biekpe and
Abor (2006) question whether the use of such debt improve businesses' performance and hence
enhancing sustainability.
A study conducted by Yunos, Nazaruddin, Ghapar, Ahmad, and Zakaria (2015) intending to establish
the relationship between working capital management and profitability concluded that firm’s
profitability is actually influenced by how it deploys its debt management strategies. This study
considered data for two years between 2006 and 2008 to gage different listed companies in Vietnam
stock exchange mainly focusing on their cash operation cycle and its embedded elements to measure
debt management. Its findings were that there exists a strong negative relationship between the two
variables. The study went ahead to explain that profits are inversely related to how the firm’s cash
operational and conversion cycle. It further established that firm’s profitability increases as the
debtor’s cash conversion cycle and inventory periods reduces as it was assessing different debt 25
8. management inform of aggressive financing and investment strategies. Pearson and Spearman’s
correlations were run and the study found out that there is significant negative relationship between
profitability and the time it takes for firms to collect cash from their customers. However, the study
established highly significant positive relationship between profitability and the period taken to
convert inventories to sales and the time it takes for firms to pay creditors.
2.4.3 Book keeping literacy and financial performance
Chelimo and Sopia (2014) defined book keeping as the process of recording all the tractions in a
chronological, logical and systematic. These transactions include purchase, sales incomes as well as
payments made incurred by the enterprise. This function is a mainly maintained by a firm’s
bookkeeper as common methods are being deployed Which include double entry as well as single
entry principles. Double entry principles is always followed when a single transaction affects at least
wo more accounts in our books. This normally follows a debit credit entry principle as way of
checking for errors in a traction especially when the debit side of the accounts disagrees in terms of
the total credit side of the same account. Nunoo and Andoh (2012) explains that in most of the
SMEs, this concept if influenced by different firm factors including size of the enterprise, frequency
of the transactions as well as level of growth rate on the industry basis.
Chelimo and Sopia (2014) explains that Every enterprise however small it may be, requires written
records to be used by owners and managers as a direction to actions, taking routine decisions,
developing of general procedure and maintaining working relationships with other entities or with
individuals that help an organization to achieve faster growth.
Different professional bodies have come up to define the concept of book keeping. According to
ACCA (2017) book keeping refers to process of recording, classifying, summarizing and interpreting
financial transactions in the books of accounts in a systematic manner for decision making purposes.
26
9. Bookkeeping is seen as a basic accounting skills and those fundamental competencies in accounting
needed by an organization to operate competently and grow efficiently in the process of conducting
business activities recording and analyzing daily business transactions and also includes skills in
bookkeeping, budgeting, keeping of accurate receipts, sales records, customer records (Sabri, 2017;
Chamwanda, 2015).
On contrary, Fatoki (2014) opine that even though book keeping simplifies a business processes such
filing tax returns, benching its business performance with ventures and help to institute in place
relevant financial controls to prevent early and subsequent business failure most ventures do not keep
proper business records due to lack of accounting knowledge.
Many scholars have come up to conduct an empirical study on how book keeping literacy affects
performance of firms and enterprises (Siekei, Wagoki, & Kalio, 2013; Bongomin et al., 2016;
Wilhelmsson, 2017).
In the empirical conducted by Siekei et al., (2013) to examine the role of financial literacy on
medium enterprises where a case study of equity group foundation program on small and medium
enterprises in Kenya was taken, it was found out that financial literacy plays an important role in
streamlining the performance because employees and management possess skills and competence in
felid of assets, revenue and expenditure management and this enhances performance due to improved
ability in tracking and reconciling business invents and transactions from the transaction process.
Siekei et al., (2013) found out that these enterprises which keep proper books of accounts are in
position to establish the performance of their ventures accurately and their financial growth can
easily be measured basing on their transactional stands. He proceeds to point out in his study that
enterprises 27
10. that maintain proper books of accounts are mostly to enjoy benefits of increased profits as well as
market growth due to effective financial planning
Despite of common conclusions and many suggestions by many scholars from empirical studies
about how book keeping literacy affects financial performance of these enterprises, book keeping is
still a challenge to most of these Enterprises where many of them have failed to maintain proper
books of accounts of their daily transactions (Bongomin et al., 2016).
Okello (2016) in his study findings aiming at examining the effect of book keeping on the growth of
Small and Medium enterprises taking case study of Chukka County in Kenya. The study found out
that most of these enterprises don’t not properly keep their books of accounts and those who try, keep
incomplete ones because of limited and insufficient accounting knowledge and yet the cost of
outsourcing accounting services is high. This therefore leaves a gap in ways of basing on accounting
information to assess and measure financial performance of these enterprises.
Therefore, this makes it difficult for the entrepreneurs, business owners as well as managers to
ascertain how much they have spent and how much they have earned so as to calculate and ascertain
the profits made for a given period. He therefore concluded that financial knowledge in areas of book
keeping is significant in enabling an entrepreneur to acquire more knowledge and run business
activities efficiently to ensure growth of an entity in terms of profits. revenues and in long run
enhance performance.
A study conducted by Chelimo and Sopia (2014) on examining the effects of bookkeeping on the
growth of small and medium business enterprises in Kabarnet Town where its main objective was to
examine the record keeping literacy among these SMEs, analyze their growth levels and to establish
the relationship between bookkeeping and growth of SMEs in Kabarnet Town. 28
11. A descriptive survey research design was deployed where a sample of 72 respondents stratified
randomly selected. descriptive statistics and analyzed were used to analyze data where percentages
and tables were used. This study found out that many operators of these enterprises in Kabarnet town
maintain sales record books using the double entry system. It also reveals that shows that proper
book keeping positively enhances SMEs growth as measured by profitability and increased business
expansion in Kabarnet town. SMEs and bookkeeping could be used to monitor business transactions
although many traders do not use it for this purpose.
2.4.4 Budgeting literacy and financial performance
Different scholars have come up to conduct empirical studies on how budgeting literacy and
processes affects firm’s performance (Qi ,2010; Mohammed and Ali ,2013; Gonçalves,
2014;Onduso, 2013)
An empirical study conducted by Sugioko (2010) on the impact of budgeting process on SME
Performance in china mainly to access whether the budgeting process has a statistical and positive
impact on the performance of Chinese small and medium sized enterprises. The study found out that
their budgeting process positively affects their level of performance. it also revealed that more
formalized processes in budgeting results in increased sales revenue as well as affects budgetary
performance of these enterprises hence clearly indicating that clear and attainable budget goals lead
to firm’s goal attainment while difficulty but achievable enhance employee motivation to attain
budget standards. The study also found out that such budgetary control tends to lead to a higher
growth in profit of a firm.
Gonçalves (2014)’s study on the impact of participative budgeting process on expenditure, stated in
his conclusion that, participating budgeting is a difficult process which is affected by many
conditions 29
12. and therefore it is hardly easy to ascertain its absolute effect on the performance of employees as it
tends to be insignificant as some level.
In the study conducted by Mohammed and Ali (2013) aiming at establishing the relationship between
budgeting and performance of Remittance companies in Somalia” found out that there is a positive
correlation (r = 0.514) between budgeting and firm performance implying that effective budgeting
increase performance by 0.514. therefore, shows a statistically positive relationship between the
variables.
Also, in the study conducted by Faith (2013) examining how budgeting process affect financial
performance of manufacturing parastatals in Kenya found out that more formal budgeting planning
escalates higher growth in sales of these particular parastatals. These controls enhance profit growth
and leads to effective managerial performance
The study conducted by Onduso (2013) in examining the effect of budgets on financial performance
of companies taking an empirical investigation in Nairobi county concluded that company’s financial
performance is mainly measured by the return on assets and this was bearing a significant influence
on the budget usage on managerial financial performance
In an empirical study by Adomako and Danso (2014) to examine how budgeting affects performance
of non-financial institutions in Ghana. During this study, qualitative study design was adopted and
primary data was collected from 89 non-bank institutions by use of a questionnaire tool so as to
importance of budgets as a financial management tool among these institutions. Step wise method
was applied for model generation and regression analysis adopted to measure the extent of the cause
and effect of budgeting on the performance. The study found out that budgeting influences
performances as most of the respondents were agreement with the subject matter indicating that
effective budgeting increases profits (3.99), enhances ROI by shareholders (3.83) and streamlines 30
13. growth of market hence increase in firm’s sales (3.61). therefore, the study concluded that budget
processing has a statistical significance on the performance of the firms.
2.5 Summary of Literature Reviewand the literature gap
Small and Medium Sized Enterprises are a major economic driver in Uganda’s economy as they play
a fundamental role of wealth and job creation to ever increasing Uganda’s population. Different
empirical studies by different scholars have established that financial literacy levels among
companies and firms has an effect on their growth and performance. Still, many studies have used a
resource-based theory upholding that financial literacy is an intangible, immovable and a rare
resource and if well utilized can give an enterprise a competitive advantage and enhance growth and
performance. Few scholars in Uganda have come up to conduct empirical studies on financial
literacy and how it affects the financial performance of small and medium enterprises and most of the
existing studies done have been focusing on large firms and companies. Substantial support in from
of funding and finances have been extended by governments and other development partners to boost
their performance and strengthen their survival but, there is limited understanding on whether these
firms are financially literate enough to make use of these financial resources extended and apparently
limited follow up has been done to access whether these funds have been effectively and efficiently
fully deployed and managed.
Even considering existing studies, the current studies have not clearly explained how these
enterprises can deploy financial` literacy as a resource to reduce or avoid failure and achieve faster
business growth. Several scholars have studied financial literacy and performance (Eniola &
Entebang, 2014; Chepkemoi et al., 2017; Nanziri & Leibbrandt, 2018). However, most of these
studies are focusing on how financial literacy affect company performance and few of them are
looking at the how financial literacy affect financial performance especially looking at those specific
dimensions of financial literacy. Some of these studies have produce mixed results and therefore 31
contracting conclusions. Some studies have established a relationship between the variables and
others established no relationship existing. This is shown by Hoseini et al, (2012) on a study financial
literacy on transaction costs of obtaining credit in rural Iran where he failed to establish any
relationship. Also, financial literacy has been linked to influence the performance of firms as
portrayed by Nanziri and Leibbrandt (2018). Therefore, this study sought to bridge this literature
gap and expand on the literature about how financial literacy affect financial performance
specifically among SMEs in Uganda. F95