Effective Financial Management Research Articles

ФИНАНСОВЫЕ РИСКИ В ЭПОХУ КРИЗИСА

The article discusses the problems of effective financial risk management. Financial risk management is an important mechanism that allows an organization to function effectively during a crisis period. Special attention is paid to management methods, types of financial risks are analyzed. The paper mentions such important areas as SWOT and PEST analyses, which help to better manage risks. The theoretical base accumulated during the evolution of risk management allows us to characterize the nature of financial risks and their impact in the current realities in a rather multifaceted way. The final part of the article identifies the main methods and approaches to financial risk management, the impact of new technologies in this area and the direction of development.

ФІНАНСОВА СТІЙКІСТЬ ПРОМИСЛОВИХ ПІДПРИЄМСТВ УКРАЇНИ

The article investigates trends in the financial stability of Ukrainian enterprises, in particular industrial ones, in modern operating conditions. Effective management of the financial stability of the enterprise is a guarantee of its successful development, as well as entrepreneurship in general and the economy of the state. In order to form an effective financial stability management system, it is necessary to evaluate it. About a third of the assets of enterprises belong to industry. The rate of growth of non-current assets and equity of industrial enterprises significantly exceeds the rate of growth of these indicators of entrepreneurship in general. However, the share of industrial enterprises' capital is smaller, which is reflected in their financial stability. At the same time, the amount of non-current assets significantly exceeds the amount of equity, so the amount of own working capital is negative, as well as other absolute indicators of the financial stability of industrial enterprises. The evaluation of indicators of financial stability indicated its rather low level. The full-scale war in Ukraine led to a negative financial result of entrepreneurship, especially in the industrial sector. Profit is an important factor of financial stability, a source of equity growth, an indicator of entrepreneurship development. In the current conditions, it is necessary to find new ways to increase profitability, reduce cost without reducing product quality, implement energy-saving measures, increase energy efficiency of production, optimize production capacities, increase the efficiency of resource use, and develop a successful marketing policy. In order to improve financial stability, in addition to increasing profitability, it is also proposed to issue new shares, additional contributions of founders, revaluation of fixed assets and search for opportunities to receive irrevocable financial assistance, values from organizations, individuals, and states. The given ways of improving financial stability will make it possible to ensure its sufficient level, which is currently an important element of stabilizing the financial condition of enterprises and the economy of Ukraine.

Ways to Develop Financial Resources in the Innovative Development of the Economy

This article examines strategies for amassing financial resources to spur innovative economic development, a pressing global issue, particularly in light of the recent pandemic. Emphasis is placed on maintaining operational continuity in production and services by funnelling funds from national and international capital markets into the corporate sphere, preserving the financial stability of joint-stock companies, ensuring employment, and introducing novel financing mechanisms. The paper also provides a detailed analysis of economic studies on the structure and characteristics of capital markets. The process of garnering financial resources from capital markets, guided by cash flow direction and the deployment of hybrid financial instruments during finance agreement negotiations, is also discussed. Overall, the article seeks to elucidate and address the challenges of driving innovation in economic growth through effective financial resource management.

МЕТОДИ ОЦІНКИ ФІНАНСОВИХ РИЗИКІВ В СИСТЕМІ ПУБЛІЧНОГО УПРАВЛІННЯ

The article notes the importance of state internal financial control as a public administration tool, explores the essence of financial risk in the public administration system. In general, risk management can be viewed as a specific management process consisting of several stages, namely: stage 1 - risk identification (for implementation, it is necessary to have a wide range of practical and theoretical knowledge in this area, qualitative and quantitative approaches); Stage 2 - making a decision regarding the risk assessment method, risk assessment (there are three groups of assessment methods: economic-statistical, expert, analog); Stage 3 - making a decision on methods of influencing the risk (method of managing or avoiding risks, or preventing damage, or redistributing risk, or taking on the risk in accordance with the financial capabilities of the enterprise and the total amount of potential losses); Stage 4 - implementation of the selected methods of influencing the risk and adjusting the risk management system at the enterprise after monitoring the management results. It was found that the second stage has the main influence on the decision-making results, provided that the risk assessment methods and their main techniques (tasks) are correctly compared. As a result of the analysis of existing methods and models for assessing financial risks, it was found that expert methods dominate in practice. In general, it was noted that an effective financial risk management process is an important condition for improving the public administration mechanisms existing in Ukraine. It has been determined that premature monitoring of the effectiveness of all stages of the financial risk management process, taking into account “weak points” forms the basis for timely adaptation to them. The lack of this ability can be the main cause of emerging crisis situations in public administration.

The management of fiscal risks as a source of effective financial management: case of Moroccan companies

The objective of our study is to obtain a clearer vision of the origins of the sources of fiscal risks. In order to conduct our research, we realised a survey to determine the real origins of the sources of fiscal risks faced by Moroccan companies. The findings indicate that fiscal risks have both internal and external origins, which brings Moroccan companies to ask themselves how to deal with these risks in order to enhance their results and attain performance.

РОЛЬ БУХГАЛТЕРСКОЙ ОТЧЕТНОСТИ В ПОВЫШЕНИИ ЭФФЕКТИВНОСТИ МЕНЕДЖМЕНТА НА ПРЕДПРИЯТИИ

The relevance of the issue of preparing financial statements to improve the efficiency of management at the enterprise is due to the fact that the interaction of the work of the accounting department and the financial management service will make the information received more useful for the company’s management. This task should be one of the priorities in any company. It is impossible to remember all the numerous facts that an organization carries out every day, but they are all recorded and reflected in accounting. The results of operations can be gleaned from the balance sheet, income statement and other forms of reporting. But you need not only to see this data and know what report you can take it from, but also be able to analyze it. Therefore, when building an effective financial management system, it is necessary to ensure the maximum information content of the reporting forms used.

A Holistic Approach towards Leadership and Management Small and Medium Enterprises (SMEs): An Empirical Study

Small and medium-sized firms (SMEs) require effective leadership and management to succeed. A holistic approach to leadership and management entails considering all aspects of the business and its surroundings and establishing strategies to optimize them. Leaders of SMEs must understand the organization's aims and objectives and be able to successfully communicate them to their teams. They must also develop a positive workplace culture that encourages creativity, innovation, and collaboration. Moreover, effective management entails ensuring that the company runs efficiently and successfully. This encompasses budgeting, operations, and human resources. Monitoring cash flow, developing budgets, and making smart investments are all part of effective financial management. Optimizing processes and systems to maximize efficiency and minimize waste is what operational management entails. Hiring and maintaining top employees, offering training and development opportunities, and fostering a healthy company culture are all part of human resource management. Aside from these essential activities, successful SMEs must also adapt to changing market conditions and leverage technology to create a competitive advantage. SMEs can develop sustainable and healthy firms by embracing a holistic approach to leadership and management.

The Management of Fiscal Risks as a Source of Effective Financial Management: Case of Moroccan Companies

The Management of Fiscal Risks as a Source of Effective Financial Management: Case of Moroccan Companies

АНАЛИЗ ФАКТОРОВ ПРИНЯТИЯ ИНВЕСТИЦИОННЫХ РЕШЕНИЙ РЕГИОНАЛЬНЫМИ ПРЕДПРИЯТИЯМИ

The article discusses aspects and factors that can play a role in making managerial decisions in regional enterprises. Rational choice of investment direction is necessary for effective financial management, planning and forecasting of economic activity for the long term. The key factors that can influence the adoption of investment decisions are analyzed, the criteria for investment decisions are considered. It is noted that despite the known factors influencing investment decisions, there is a need for additional research and study of the influence of several combined factors on making a proper investment decision, including the nature of information, its disclosure and perception. The authors also proposed a scheme of the investment decision-making process.

The Intersection of Finance and Healthcare: Financing Healthcare Delivery Systems

The Intersection of Finance and Healthcare: Financing Healthcare Delivery Systems" explores the complex relationship between finance and healthcare, focusing on the financing of healthcare delivery systems. The article discusses the importance of effective financial management in healthcare organizations, including budgeting, revenue cycle management, cost containment, and financial reporting. It also examines the role of finance in promoting patient care and saving costs through strategies like accountable care organizations and value-based care models. The article highlights the significance of financing for medical innovation, research, and the creation of novel treatments and cures. The article also discusses the importance of financing for attracting, training, and retaining a competent healthcare workforce. The article emphasizes the significance of sustainable finance in accomplishing universal health coverage and mitigating inefficiencies within the health system. The article examines various healthcare financing models, including tax-funded healthcare systems, social health insurance programs, private health insurance models, and hybrid healthcare finance models. The article also discusses the historical perspectives of healthcare financing, including the creation of publicly funded healthcare systems and the Affordable Care Act. The article concludes by examining the current landscape of healthcare financing, including global trends in healthcare spending and funding schemes. The article emphasizes the importance of balancing clinical efficacy and financial efficiency in healthcare finance systems and overcoming obstacles like fragmentation of services, bureaucratic obstacles, and administrative inefficiencies.

Медико-соціальне обгрунтування фінансово-економічного стану Снятинської ЦРЛ до та після запровадження госпітального округу

The article is devoted to the study of the issue of medical and social substantiation of the financial and economic status of the Snyatyn Central District Hospital before and after the introduction of the hospital district. The purpose of the study was to analyze the financial economic status of the Snyatyn Central District Hospital in order to determine the efficiency of the introduction of the hospital district. Materials and methods. The object of the study of this scientific article is the activity of the Snyatyn Central District Hospital, which experts have recognized as one of the most successful not only in the region, but also in Ukraine. It is a unique experience in building an effective financial and economic system, which should be taken into account almost by every hospital district when building an effective system of medical services. Results and discussion. Despite the fact that the financial result of the Snyatyn Central District Hospital during the period being studied is negative, the financial condition is determined by stability, autonomy, independence, liquidity and solvency. These are the indicators that allow the organization to plan their expenses according to the needs, to improve the staff and to expand the material and technical base. With regard to the medical and social aspect of the formation of finances during the formation of hospital districts, it should be noted that the reorganization changes have been negatively reflected in the organization's activities, as 45 employees had to be reduced. However, this fact allowed to increase the salary of the staff and to make minor investments in the upgrade of fixed capital. The financial system of the institution continues to improve, and its main purpose is to form the conditions for providing quality services to the population through the use of modern medical technologies and through consultations of highly qualified workers. Conclusion. Based on the results of the research, it can be concluded that the Snyatyn Central District Hospital is one of the most successful in the country, which is confirmed by the relevant certificate. The medical institution effectively manages its own finances and the funds allocated by the state are almost enough for it. The Snyatyn Central District Hospital really deserves a high rating for effective financial management, particularly important are the indicators of the organization's liquidity, which allows solving all the necessary needs of the institution, including the renewal of the material and technical base. Such financial system allows the organization to develop and create a competitive product

Implementasi Manajemen Keuangan Madrasah Dalam Rangka Meningkatkan Mutu Pendidikan Islam

This article focuses on discussing the implementation of financial management in madrasas, management connotes everything related to administrative control or management. This article also discusses various education financing management which play an important role in achieving educational goals and improving the quality of education. One of them is by improving the quality of education by knowing the national education standards that apply in Indonesia. Effective financial management will guarantee the benefit of educational institutions, so madrasah financial management must be handled seriously and responsibly to avoid unwanted things and can improve the quality of Islamic education.

ТРАНСФОРМАЦІЯ ФІНАНСОВОГО УПРАВЛІННЯ В БАНКІВСЬКОМУ СЕКТОРІ УКРАЇНИ ПІД ЧАС ВІЙНИ

Introduction. None of the spheres of social life, including the economic, can take place according to established approaches and mechanisms. Banking is no exception, first of all, the development of the banking sector, in which ambitious goals that lead to the acceleration of its transformation processes are always prominent. A key issue in the functioning of the banking sector at any stage of its development is ensuring financial stability in the short term and financial stability in the long term. This issue became even more relevant during the COVID-19 pandemic, and gained importance with the full-scale invasion of the aggressor country on the territory of Ukraine. The purpose of the article is to define the features of effective financial management, and substantiate the main parameters of the banking institutions business processes organization in the conditions of military aggression Results. The article formulates the main goal and principles of effective financial management in banking sector, namely: transparency, variability, reflexivity, informativeness, hierarchy, adaptability and corporateness. It has been proven that integration and process approaches to management are used in banking to ensure its effective functioning,. The effectiveness of financial management in the banking sector of Ukraine during 2021-2022 was studied through the analysis and assessment of the changes dynamics in banks' financial results, the amount of deductions to reserves for the depreciation of bank assets, the amount of non-performing loans, and the capital standards of banks. The key decisions of effective financial management by the National Bank of Ukraine after the full-scale invasion of the Russian Federation are diagnosed. Conclusions. The main parameters for organizing the business processes of the vast majority of banking institutions for effective bank-client communication are proposed, in particular, the organization of remote access, ensuring a smooth process of customer service, work on minimizing losses, reassessing the state of the loan portfolio and finding out its level of deterioration, duplication of personnel functions and others. It has been proven that in modern conditions effective financial management in banking is transformed in view of modern challenges and should be situational, fast and economically justified.

PELATIHAN DAN PENDAMPINGAN PENGELOLAAN KEUANGAN DAN OPTIMALISASI USAHA PADA CV ZERONE

The challenges for Micro, Small and Medium Enterprises (MSMEs) are getting bigger as a result of the complex economic environment. MSMEs need to have good financial management skills. Financial management is an important element of overall business management. With financial management, MSMEs can make decisions about inventory planning and pricing, sufficient cash flow to maintain business operations and for better business forecasting and projections. Effective financial management will affect the overall profit of MSMEs. Financial management through the preparation of financial reports will have a positive impact on MSMEs in optimizing their business in the long term.This community service program is designed to provide solutions and assist CV Zerone in conducting financial management. This community service program is carried out because there is no comprehensive financial reporting system at CV Zerone so that owners have difficulty measuring the company's financial performance. This activity is carried out by providing training and assistance in making financial reports. The objectives of this community service program are: 1) providing education on the importance of financial reports for the company, 2) assisting CV Zerone in preparing comprehensive financial reports to show financial performance, 3) assisting CV Zerone in analyzing financial reports to improve company performance. This community service program makes CV Zerone able to make comprehensive financial reports, gain skills to analyze the results of financial reports and be able to make strategic decisions to optimize its financial performance.

BUDGET MANAGEMENT FOR THE NON-PROFIT ORGANIZATION

Non-profit organizations rely on effective financial management that enables the leadership and the workforce to use the funds to the advantage of the population in need. Since non-profit organizations cannot generate substantial revenues without the support of the government, individual donors, and/or the community, all resources must be allocated and distributed to achieve benefits and outweigh the costs. In other words, the budget of the proposed program on domestic violence must address all needs and meet social outcomes to undergo substantial improvements, such as decreased time in jail and reduced number of domestic crimes. For example, creating a domestic violence program should focus on providing education to prevent people from resorting to violence in domestic conflict resolution. It is anticipated that the program would help the community to witness a decrease in violent domestic crimes and time in jail for domestic violence-related crimes.

IMPLEMENTATION OF FINANCIAL LITERACY ON COMMUNITY FINANCIAL MANAGEMENT IN TOMOHON CITY

During the current pandemic, people are required to be able to manage their finances well in order to survive difficult times when facing difficult situations. However, in reality, not a few people still have difficulty in managing their finances due to lack of knowledge about good financial management, so that many people suffer from economic downturns that have even more severe impacts on the decline in the level of community welfare in the City of Tomohon. This study aims to determine and analyze the extent to which the implementation of financial literacy on the financial management of the people in the city of Tomohon. This research is quantitative research using multiple linear regression analysis method. Based on the results of the analysis, financial literacy has a significant and positive effect on people's financial management, so with high financial literacy, one can form wise financial behavior and effective financial management.

ІННОВАЦІЙНІ ІНФОРМАЦІЙНІ ТЕХНОЛОГІЇ У ФІНАНСОВОМУ УПРАВЛІННІ

The development and implementation of the latest technologies requires certain changes in the management of enterprises, organizations and banks that seek to be competitive in the market. Many studies state that enterprises and organizations that are flexible and quickly adapt to changes in the external environment, quickly improve management, taking into account all approaches and methods, are successful in the market and successfully adapt to changes. Financial management in enterprises, organizations and banks through processes that enable effective management is an important and rather complex issue. It should be noted that in Ukraine, the improvement of financial management through the use of the latest technologies, such as, for example, digitalization, is not very active. At the same time, most enterprises in developed countries demonstrate examples of the implementation of various innovative financial management tools. These and other important questions need to be explored. In the scientific article, the analysis of information software, which is the most common in use, is carried out, their distinguishing characteristics are given, and the expediency of introducing innovative information technologies into the financial management system of domestic enterprises, organizations, financial and banking institutions to automate the planning and forecasting process is justified. The experience of 25 foreign industries that use information software was considered, and those that are most popular among foreign enterprises were determined. The authors considered the most prevailing in use foreign software, which can be used by domestic companies, provided the distinctive characteristics of such software and cited the examples of foreign companies that have already had experience in using the specified programs to automate the planning and forecasting process. The experience of 25 foreign industries was examined in this regard. There was created a comparison matrix between functions of the foreign software for automation of the processes of financial planning and forecasting: functions of the planning process, forecasting, reporting, and conducting analytics. Based on the results of the analysis, foreign software for automation of the planning and forecasting processes at enterprises was ranked according to four criteria: general rating, ease of use, quality of support, and ease of configuration. Special attention was paid to the most modern new generation business platform for financial planning and forecasting called Oracle Enterprise Performance Management (EPM) System, its modules were considered and advantages in practical use were determined. The list of the most popular information programs that can be used by domestic enterprises, organizations, and financial and banking institutions for effective financial management was given. These are BAS ERP, SAP ERP, “Galaxy ERP”, SyteLine, “Parus ERP”, Oracle E- business Suit, and Microsoft Dynamics AX. Conclusions and proposals were made regarding the implementation of information technologies for the purpose of effective financial management of domestic enterprises, organizations, and financial and banking institutions.

Prospective areas for managing the financial potential of sustainable development of territorial communities

Low income and considerable amounts of local budget expenditures, dependence on interbudgetary transfers, and the lack of an effective financial resource management system do not allow local authorities to fully implement the functions assigned to them and fulfil the community's financial potential. In this context, the search for promising areas for managing the financial potential of sustainable development of territorial communities is considered particularly relevant. The purpose of this paper is the theoretical and methodological substantiation of promising areas for managing the financial potential of sustainable development of territorial communities. It has been established that in the conditions of martial law, the tasks of local authorities have significantly expanded. Specifically, the issues of social and household services for internally displaced people, the formation of food reserves, and the application of security measures to protect the community, the implementation of which require adequate funding, have become relevant. It has been proven that local budget revenues are a key indicator of the financial potential of territorial communities. Using the method of economic and mathematical modelling, it is argued that the progress of the financial potential of territorial communities both during the martial law and in the post-war period will depend on capital investments in the development of the economy, the growth of the employment of the working population, as well as the increase in its income as the main source of the formation of financial bases of local budgets. It has been empirically confirmed that the state of war and the need for post-war reconstruction of territorial communities requires their classification depending on the degree of human, infrastructural, and economic losses. It has been proven that such a gradation allows developing an algorithm for managing the financial potential of sustainable development of territorial communities depending on their immediate needs and requests, and for state authorities and management bodies to find out the necessary amounts of financial and other support as soon as possible. The need to develop conceptual approaches to the development of a sophisticated management mechanism for the restoration of the financial potential of communities synchronized with the EU membership plan is argued. Such approaches can be used by local government and management bodies when developing strategic plans for the sustainable development of territorial communities, developing financial potential capable of ensuring the implementation of measures to manage their economic, social, and environmental advance

Financial Management Practices and Financial Performance of Deposit Taking Saccos in Nairobi City County, Kenya

Purpose: The purpose of this study was to examine the effect of financial management practices on financial performance of SACCOs in Nairobi City County, Kenya.
 Methodology: This study adopted an explanatory research design. The target population consisted of the 215 deposit taking SACCOs in Kenya. A sample of 41 deposit taking Saccos in Nairobi city County registered by SASRA for the period 2015 to 2019 was drawn from the target population. Thus, the 41 deposit taking SACCOs as registered by SASRA and their published financial statements constitute the unit of analysis and unit of observation respectively. The census sampling method was used in order to gather enough information since the number of SACCOs is limited and justifies the requirements of efficiency, reliability and representativeness. Further, secondary data was also collected through data collection schedule. Facts and figures were collected through published financial reports and statements of deposit taking SACCOs licensed by SASRA in Nairobi County for the period 2015 to 2019 and the key financial information on the variables of concern were discerned from these reports. The data for this study was panel and therefore the STATA software was used for analysis under panel regression model. Descriptive analysis were done to explain the basic features of the data. Inferential analysis was done afterwards based on panel regression which was then used to test the research hypothesis according to the research specific objectives. The testing was under the 5% significance level.
 Findings: The results of the study revealed that fixed asset, loan portfolio, cash asset and financial investment management practices were positive and significantly correlated to financial performance of DT-Saccos in Nairobi City County. In addition, the results also indicated that financial investment management practices had a more positive and significant effect on financial performance, followed by loan portfolio management practices, then cash asset management practices and lastly fixed asset management practices. The moderating variable, sacco size was found to have a moderating effect on the relationship between financial management practices and financial performance of DT-Saccos in Nairobi City County.
 Unique Contribution to Theory, Practice and Policy: The study recommended that the management of DT-Saccos should consistently ensure they prepare cash budgets and maintaining a cash book so as to be able to manage their cashflows especially from the account receivables and account payables. They should also implement effective financial investment management practices that can help them reduce the risk of financial losses from investments such as projects or securities. The study findings may help policymakers in DT-Saccos such as the SASRA to enforce better loan portfolio management policies that encourage their customers to purchase loans and reduce cases of loan defaulting. Moreover, these policies may also be used to reduces the number of non-performing loans which have a significant effect on the ROA of the DT-Saccos. Researchers and Scholars could benefit from this study by use of the theories that were discussed in this study. They can also use the results to validate and corroborate findings of their own study.

The Impact of Internal Audit Practices on Financial Management of Local Government Authorities: The Case of Morogoro Municipality in Tanzania

This study intended to explore the impact of internal audit practices on financial management of the Tanzanian LGAs, mainly at Morogoro Municipal. Descriptive and multiple regression analysis were applied on the collected data through survey instrument. Our findings indicate internal audit independence and quality of internal audit work significantly affect financial management in the stated LGAs. On the other hand, internal audit proficiency has no negative insignificant impact on financial management. It is recommended that LGAs should ensure that internal auditors are always equipped with relevant audit experience to enable them carry out their activities with confidence. Also, independence of internal auditors in Tanzanian LGAs must be significantly emphasized in order to ensure effective operations and management of public resources. Since our study concentrated only in one Municipal Council (Morogoro Municipality), it is recommended that future studies should consider the remaining Municipals in Tanzania. Morever, consideration of qualitative research approach will add more in-depth understanding on how internal audit practices explain effective financial management principles in Tanzania. This can be achieved by applying focus group discussion, interview and other relevant means of data collection apart from survey instrument which is constrained by biasness.