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The Impact of Financial Management Practices on Firm Performance: A Study of the Manufacturing Sector in Indonesia Rizka Ar Rahmah; Fred Ojochide Peter
Involvement International Journal of Business Vol. 1 No. 1 (2024): January 2024
Publisher : PT Agung Media Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.62569/iijb.v1i1.2

Abstract

This study aims to examine the impact of financial management practices on the performance of firms operating in the manufacturing sector in Indonesia. In this study, we collected data from a number of manufacturing companies in Indonesia and analyzed the relationship between financial management practices and key performance indicators such as profitability, liquidity, and solvency. The findings of this study indicate that effective financial management practices have a positive impact on the performance of companies in the manufacturing sector in Indonesia. Disciplined and measurable budgeting practices have been shown to significantly contribute to increased profitability. Careful and regular financial analysis also helps companies identify performance trends, measure operational efficiency, and make better decisions. Furthermore, efficient working capital management practices have a positive impact on the liquidity of companies. Companies that are able to manage inventory effectively and implement prudent credit policies tend to have healthy cash flow and avoid liquidity problems. Additionally, making smart investment decisions based on thorough analysis also contributes to improved solvency. Companies that carefully consider risks and potential returns in investment decision-making have a healthier capital structure and are better able to meet their financial obligations. The findings provide a better understanding of the importance of effective financial management practices in enhancing the performance of companies in the manufacturing sector in Indonesia. 
Covid-19 and Its Effect on Small Businesses in Nigeria: A Rational Choice Theory and an Empirical Approach Ademola Samuel Sajuyigbe; Anthony Abiodun Eniola; James Nwoye Obi; Fred Ojochide Peter
JASF: Journal of Accounting and Strategic Finance Vol. 4 No. 1 (2021): JASF (Journal of Accounting and Strategic Finance) - June 2021
Publisher : Accounting Department, Faculty of Economics and Business, Universitas Pembangunan Nasional Veteran Jawa Timur

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.33005/jasf.v4i1.169

Abstract

The misery and difficulties of the novel deadly infection (COVID-19) are of great concern to analysts, researchers, policymakers, and government agencies over the globe. This investigation examines the effect of the deadly infection (COVID-19) on small businesses in Nigeria, with particular reference to Lagos State. A purposive examining procedure was utilized to choose each of the 321 small businesses owner of Nigeria (ASBON) enlisted in the Lagos Business Directory. Close-ended questionnaires were used to gather data from the members. The data analysis was performed with percentage, mean, chi-square, and component factor analysis. The outcome uncovers that the deadly infection (COVID-19) has injured all the SMEs surveyed. It was discovered that most small businesses are doomed as a result of the negative impact of COVID-19. The assessment using rational choice theory derives that credit accessibility, tax waiver for sectors, the introduction of emergency advances, and flexibility of repayments of existing loans by financial institutions are solid palliative measures that can cushion the effect of the deadly infection (COVID-19).