Financial Management Practices Research Articles

The Modern Economic, Technological, and Societal Trends: New Challenges or Opportunities. Conference Proceedings, November 27-29, 2024

The conference proceedings include abstracts from presentations at the Fifth International Scientific Conference on Accounting, Audit, and Analysis, titled “The Modern Economic, Technological, and Societal Trends: New Challenges or Opportunities”. This conference is dedicated to evaluating the evolution and modernization of accounting, auditing, and financial analysis, covering trends in accounting theory, practice, and regulation; technological transformations; shifts in audit methodologies; advancements in financial and business management practices; and the role of governance and accountability in addressing sustainability and climate-related challenges.

Analysis of ABSL Multicap Fund and Textile sector with Innerwear and Hosiery as a Subsector with reference to Lux Industries Ltd

The internship project entitled "Analysis of ABSL Multicap Fund and Textile Sector with Innerwear and Hosiery as a subsector with reference to Lux Industries Ltd." was taken up at Aditya Birla Sun Life Ltd. by Rohan Ganesh Kolhapure. The project would involve assessing the performance, strategies, and market positioning of the ABSL Multicap Fund for the period between June-August 2024. This also included assessing the textile sector dynamics, with special inward titude toward the innerwear hosiery subsector, using Lux Industries Ltd as a case study. The main tasks were related to the assessment of historical performance of ABSL Multicap Fund and its investment strategies, as well as the analysis of sectoral trends influencing the innerwear market. Specific methodologies included quantitative analysis of financial statements, asset allocation, and risk management practices, in addition to strategic frameworks like SWOT, PESTEL, and Porter's Five Forces.

ANALISIS PRINSIP AKUNTABILITAS, TRANSPARANSI, DAN EFEKTIVITAS DALAM PENGELOLAAN KEUANGAN SEKOLAH DASAR SWASTA SANTA THERESIA I PANGKALPINANG

This research is an analysis of the principles of accountability, transparency and effectiveness of school financial management at the Santa Theresia I Pangkalpinang Private Elementary School. This research aims to evaluate the application of the principles of accountability, transparency and effectiveness of school financial management at Santa Theresia I Pangkalpinang Private Elementary School. The method that researchers use is a qualitative descriptive analysis method where data collection uses observation, interview and documentation techniques. In this research, the author interviewed several sources including: School Principal, School Treasurer, and Chair of the School Committee. The research results show that Santa Theresia I Pangkalpinang Private Elementary School has demonstrated a commitment to accountability, legal compliance and integrity in its financial management. However, there are still areas that need improvement, such as increasing information transparency, active involvement of school committees, and evaluating the effectiveness of educational programs. Financial documentation is good but access to information is still limited, and supervision of the use of funds is not optimal. For future research, it is recommended to carry out further evaluation of the implementation of the recommendations proposed in this research. Additionally, the research focus could be expanded to explore the impact of improvements in school financial management on student academic achievement and parental satisfaction. Longitudinal studies can also be conducted to see developments and changes in school financial management practices over time.

The Influence of Financial Report Quality on Performance Accountability in the Regional Financial Management Agency of Mamasa Regency

This study employs a quantitative methodology to evaluate the impact of financial report quality on performance accountability within the Regional Financial Management Agency of Mamasa Regency. Data was collected through a structured questionnaire distributed to all agency employees, ensuring a comprehensive understanding of their perspectives. The analysis utilized hypothesis testing and basic linear regression to derive meaningful conclusions from the data collected. The sample for this investigation comprised all 52 employees from the Regional Financial Management Agency, allowing for an inclusive representation of the population. The results of the hypothesis test yielded a significance value (Sig.) of 0.001, which is less than the threshold of 0.05. This statistical finding leads to the conclusion that the quality of financial reports (variable X) significantly influences performance accountability (variable Y) in the agency. These findings underscore the importance of maintaining high standards in financial reporting, as it directly correlates with enhanced accountability in performance. The study highlights the need for continuous improvement in financial report quality to foster greater transparency and responsibility within public financial management practices.

The Financial Risks in Toll Road Development in Indonesia: Challenges and Development Strategies for the Probowangi Toll Road

Probolinggo-Banyuwangi toll road, which crosses mountainous areas in East Java. Toll road construction in areas with varying topography often faces significant technical and environmental challenges, which can affect costs, completion time, and project sustainability. This study uses a quantitative approach with a descriptive method to evaluate risk factors that impact project finances, such as construction costs, dependence on funding sources, interest rate fluctuations, and traffic volume predictions. Primary data was collected through questionnaires, while secondary data was obtained from financial planning documents and related project topography. Data analysis was conducted using multiple linear regression with a path analysis model. The results of this study are expected to identify key variables that influence financial risk and provide recommendations for effective mitigation strategies. This research is expected to contribute to the development of policies and financial risk management practices for similar infrastructure projects in the future.

Determinants of Students' Decisions to Use Paylater Digital Financial Products

The use of digital financial technology is increasingly widespread among society, especially among students who are digitally active. One product that is increasingly popular is PayLater. This research aims to analyze the influence of digital financial literacy, lifestyle, social influence, and ease of use on the decision to use PayLater among students in Malang City. The t test is used as a data analysis method. The unit of analysis in this research is students who live in Malang, totaling 106 respondents. The research results show that digital financial literacy, lifestyle, social influence, and ease of use influence students' decisions to use digital financial products such as PayLater. It is hoped that this research will provide a deeper understanding of the factors that influence the use of PayLater among students and the implications for future financial management policies and practices.

The Interpretation of Public Administration Controlling From an Economic Perspective

Objective: The primary objective of this study is to assess the adherence of state/municipal economic companies to the requirements outlined in Government Decree 339/2019 (XII. 23.) concerning the use of budgetary funds. Furthermore, the study aims to evaluate the effectiveness of internal and external control systems and propose measures to enhance the efficiency and transparency of these companies' financial management. Theoretical Framework: The research builds on the principles of public sector governance, focusing on the role of internal control systems and external monitoring in ensuring the proper use of public funds. Government Decree 339/2019 serves as the regulatory basis for evaluating performance, while theories on financial control, transparency, and accountability in public administration are employed to interpret the findings. Method: A qualitative approach was employed, including an audit of selected state/municipal companies. The study utilized data from the ÁSZ (State Audit Office) reports, internal control mechanisms, and management reviews. Performance evaluations were conducted in light of the companies' compliance with regulatory requirements, with a focus on identifying systemic shortcomings and proposing improvements. Results and Discussion: The audit revealed that while the companies generally complied with Government Decree 339/2019, several shortcomings were noted, particularly in the areas of internal control and economic management. External monitoring by the ÁSZ and existing internal control systems contribute to ensuring the proper use of budgetary funds. However, there is a need to strengthen these systems further to address the observed issues. The study suggests the implementation of a management-oriented controlling system, which would emphasize economic decision-making and improve overall performance and transparency. Research Implications: The findings have significant implications for state and municipal economic companies. By adopting a more economically focused internal control system, these entities can enhance their financial management practices, optimize the use of public funds, and foster greater transparency and efficiency in their operations. This approach would not only benefit public administration but also improve service delivery to the general public. Originality/Value: This study contributes to the existing literature by highlighting the importance of a management-oriented controlling system based on economic principles in the public sector. It provides practical recommendations for enhancing the internal control and audit processes of state/municipal companies, offering valuable insights for policymakers and public administration professionals striving for greater fiscal responsibility and transparency.

Building a theoretical framework for financial risk management in emerging markets: Applying global best practices to the oil and gas industry in developing economies

Financial risk management is crucial for the sustainability and growth of the oil and gas industry in developing economies, where volatility and regulatory uncertainties present significant challenges. This abstract explores the construction of a theoretical framework for financial risk management, adapting global best practices to the specific contexts of emerging markets within the oil and gas sector. In developing economies, the oil and gas industry faces unique risks such as geopolitical instability, currency fluctuations, and regulatory changes. Effective financial risk management mitigates these risks through proactive strategies that balance risk exposure with strategic objectives. Adopting global best practices involves the integration of comprehensive risk assessment methodologies, scenario planning, and hedging techniques tailored to local market conditions. Key components of the theoretical framework include risk identification through comprehensive analysis of market, operational, and financial factors. This approach enables oil and gas companies to anticipate and mitigate risks before they escalate, ensuring financial stability and resilience in volatile environments. Furthermore, the application of global best practices in financial risk management fosters transparency and accountability, enhancing investor confidence and facilitating access to capital. By aligning risk management strategies with international standards and benchmarks, developing economy oil and gas firms can navigate uncertainty more effectively, thereby optimizing operational performance and sustaining long-term growth. However, challenges such as limited access to sophisticated financial instruments and expertise may hinder effective implementation. Overcoming these barriers requires capacity building, collaboration with experienced partners, and continuous adaptation of strategies to evolving market dynamics. In conclusion, building a theoretical framework for financial risk management in the oil and gas industry in developing economies is essential for mitigating volatility and maximizing opportunities. By applying global best practices tailored to local contexts, companies can strengthen their resilience, attract investment, and drive sustainable development in emerging markets.

Research on the Application of Blockchain Technology in Financial Risk Management

This paper explores the application of blockchain technology in financial risk management. By analyzing foundational blockchain concepts such as public and private chains, smart contracts, and consensus mechanisms, the paper first illustrates how blockchain is transforming financial risk management practices. Additionally, it highlights challenges related to scalability, interoperability, and regulatory/legal barriers. Finally, the paper discusses innovative opportunities that blockchain presents for financial risk management, aiming to provide financial institutions with new strategies and insights to tackle modern financial challenges.

Members’ Awareness in Financial Management and Financial Performance of Tarlac College of Agriculture- Faculty Association-Multipurpose Cooperative

It is recognized that cooperatives help uplift the lives of their individual members. In a broader sense, this is one of the many ways in which people join together to create a better quality of life for themselves. The financial performance of the cooperative is essential for it measures how profitable the organization is, in a specific period. In this context, understanding the relationship between financial performance and the management skills of its leaders is important for overall success. This study was conducted to determine the financial performance and level of awareness in the financial management of the officers and management staff of Tarlac College of Agriculture Faculty Association Multipurpose Cooperative (TCA-FA MPC) at Tarlac Agricultural University. A total of eight (8) officers and staff served as respondents in this study. The study used a descriptive research method to describe the level of financial management awareness of its officers and management staff. The preliminary information was gathered using a questionnaire distributed personally to the respondents. The study divulged that the management staff and officers are aware of the financial management practices of the cooperative. Additionally, the cooperative's financial performance is contingent upon the extent of awareness with financial management practice.

The Role of Gender in Managing Finances among Newly Married Couples in Klang Valley, Malaysia

This study explores the couple's role in managing finances and marital satisfaction from the perspective of newly married couples. By delving into individual demographic and behavioral segments, we reveal how couples manage and plan finances to achieve financial well-being and marital satisfaction, further identifying the role of gender in household financial management. Through a phenomenological method, we conducted semi-structured interviews with seven middle-income newly married couples residing in Klang Valley. Interviews with informants took 6 months between February 2022 and July 2022. The duration of the interview is between sixty and ninety minutes. The interpretation of qualitative data was analyzed thematically using N-Vivo 13 software. The results of the study shed light on the couple's financial management practices to achieve financial well-being and marital satisfaction. The husband is the main pillar in the household's financial affairs. This study offers value in the enrichment of data that reveals couples' understanding of managing finances and plans for their future. By focusing on newly married Malay couples, we gained a deeper insight into simple strategies implemented by household financial managers, division of financial responsibilities, and course of action. Findings that reveal the understanding and behavior of middle-income newlyweds in the Klang Valley towards financial well-being can be used by policymakers, governments, and non-governmental organizations to formulate financial health policies, programs, and campaigns to educate the public about early planning towards financial well-being and enjoying marital satisfaction.

The importance of financial controls for maximizing results for small rural entrepreneurs

Brazil's agricultural sector is crucial for the economy and global food security, encompassing about 41% of the country's total land area and housing over 5 million agricultural establishments. According to the Brazilian Confederation of Agriculture and Livestock (CNA), agribusiness contributed 23.8% to the Gross Domestic Product (GDP) in 2023, highlighting its diverse production of agricultural commodities. While technological advancements have boosted productivity, a significant gap exists between large and small producers. Large producers often benefit from technological progress, whereas small producers—a significant portion of family farming—face substantial challenges. Family farming accounts for 67% of agricultural activity and 80% of global food production, yet it struggles with financial management, lack of knowledge, and limited access to credit and technology. Efficient rural management is essential for optimizing resources, reducing costs, and enhancing productivity on small farms. Implementing financial management practices, such as budgeting, cost analysis, and cash flow control, can help small producers make better use of their resources and lower expenses. Public policies like the National Program for the Strengthening of Family Farming (PRONAF) and the Food Acquisition Program (PAA) aim to support these producers by providing financing and securing markets for their products. Family farming holds significant potential for sustainable practices. With the right support, it can continue to play a vital role in the Brazilian economy and global food security, fostering a sustainable and prosperous future for the agricultural sector.

Managing Financial Risks of Global Companies Through Corporate Social Responsibility: The Specifics of Sustainable Employment in Developed and Developing Countries

The motivation for this research was the desire to disclose the social nature of the financial risks of global companies: the authors attempted a scientific explanation of the influence of corporate social responsibility, which is manifested through the preservation and creation of additional jobs, on the financial risks of global companies. The research aims to establish the interdependence between financial risks and sustainable employment in global companies. This goal is achieved using the SEM (structural equation modeling) method based on corporate statistics from the Fortune “Global 500” rankings for 2021–2023. As a result, the consequences of global companies’ CSR (corporate social responsibility) practices in personnel management and financial risk management are modeled and described through quantitative and qualitative patterns. The established regularities proved that for developed and developing countries, the larger the number of employees, the lower the financial risks of global companies—the risk of a decrease in profitability, the risk of loss of profit, and the risk of depreciation of assets. The main conclusion is that there is a close systemic relationship between the financial risks of global companies and their workforce size, suggesting that CSR is key to highly effective financial risk management. A clear distinction between the practices of financial risk management through CSR in developed and developing countries forms the basis of the theoretical significance of the research results. The authors provide recommendations to improve the current practice of financial risk management in global companies by integrating it more closely with personnel management practices, highlighting their managerial relevance. It is proposed that corporate strategies for global companies in developed countries should focus on reducing the risk of declining profitability, as CSR has the most pronounced and consistent impact on this particular financial risk. In developing countries, corporate strategies are recommended to be structured by diversifying the areas of CSR application, with the most promising in financial risk management being the reduction in asset depreciation risk and the reduction in profitability risk. The findings of this research have practical significance because they enhance the predictability of CSR activities of global companies and open up opportunities for highly accurate forecasting of the financial risk implications of ensuring sustainable employment by global companies, considering the specificities of developed and developing countries.

Assessing the Influence of Financial Management Practices on Selected Small and Medium Scale Enterprises in Delta State Nigeria

Assessing the Influence of Financial Management Practices on Selected Small and Medium Scale Enterprises in Delta State Nigeria

Systematic Review of the Effect of Financial Management Practices on Service Delivery in Secondary Schools

In this systematic review analysis design, we explore the available peer-reviewed literature on the effect of financial management practices on service delivery in African secondary schools. Specifically, we reviewed the effect of budgeting, auditing and financial internal control on the service delivery in secondary schools. Study findings reveal that budgeting ensures effective implementation of education programs. In addition, the activities in the secondary school system are adequately planned and allocate resources apportioned to ensure effective execution and implementation. Besides, audits of school accounts result in good financial management and effective control mechanism that ensures overall operational efficiency. From the results of this review, we hereby suggest that Head teachers need to manage financial resources more responsively for effective performance and fulfilling of institutional needs, those of the teachers, students and other stakeholders of respective secondary schools. It is very crucial for school administrators and support staff in charge of finances and resource mobilization to regularly attend professional development course in order to acquire relevant financial skills and competencies required for effective management of resources in the school so as to tremendously improve on the quality of secondary schools’ service delivery.

Implications of Financial Understanding and Attitude in The Context of Financial Management MSMEs

The purpose of this study is to find out how the attitudes and knowledge of MSMEs about money influence the financial management practices of MSMEs. The result show that financial knowledge has a substantial impact on financial management behavior. This is supported by the t-statistic value of 4.626> t table value of 1.679 and p-value of 0.000 <0.05, which show that a person's level of financial education improves the behavior they use for money management. The successful achievement of a t-statistic value of 3.363>t table value 1.679 and a p-value of 0.001 <0.05 indicates a strong association between financial attitudes and financial management behavior. The coefficient of determination test findings indicate that there is a 47.4%, or 0.474, influence of financial attitudes (X2) and financial knowledge (X1) on financial management behavior (Y). This research offers an insightful new viewpoint and fully and completely demonstrates the influence of financial attitudes and awareness of the behaviors associated with financial management.

Strategic Financial Planning for Long-Term Sustainability in Madrasah Aliyah

This study investigates strategic financial planning for long-term sustainability in Madrasah Aliyah Siti Mariam Banjarmasin. The objective is to analyze the institution's financial challenges, explore strategies for enhancing financial sustainability, and propose recommendations for effective financial management. The research employs qualitative methods, including interviews and observations, to gather data on financial practices, challenges, and strategies within the institution. The findings reveal significant challenges in allocating financial resources effectively, including dependence on Government funding and limited investment in critical areas such as infrastructure and staff development. However, the study also identifies promising strategies for improving financial sustainability, such as diversifying revenue streams through fundraising events and partnerships, optimizing resource utilization, and implementing prudent financial management practices. Based on these findings, recommendations are proposed to prioritize investments in key areas, enhance revenue diversification efforts, and foster a culture of financial responsibility within the institution. Overall, the study contributes to understanding strategic financial planning in educational institutions and provides practical insights for enhancing long-term sustainability in Madrasah Aliyah Siti Mariam Banjarmasin.

Analisis Pengelolaan Keuangan Usaha Mikro Kecil dan Menengah Berdasarkan SAK EMKM di Toko Nabila Desa Sitail Kecamatan Jatinegara Kabupaten Tegal

MSMEs are productive businesses that stand alone, which are carried out by individuals who meet the criteria for MSMEs as stipulated in Law Number 20 Article 1 of 2008. Nabila shop sells daily necessities. To run the business, financial management must be done well, and the purpose of this study is to find out the financial management practices of Nabila shop. Qualitative descriptive methodology was used in this study. Three data collection methods were used: documents, interviews, and observations. This research found that Nabila shop has an automated accounting system that only tracks sales transactions. It does not have a liability account on the balance sheet and income statement, and does not provide notes to the financial statements. the researcher recommends that using the accounting application that is already available in the store properly and correctly, doing complete recording and bookkeeping and having detailed and accurate financial reports. And the owner and staff Nabila shop should attend training on the application of SAK EMKM as a whole at the Tegal Regional Cooperative, MSME and Industry Office so that they can fully implement the three components of SAK EMKM and can also explore learning information on the internet. .

Media Coverage of Treasury Single Account Introduced by Abia State Government and Its Effect on Abia State University, Nigeria

This research brief focuses on the analysis of the media coverage of the introduction of the Treasury Single Account (TSA) by the Abia State Government and its impact on the Abia State University in terms of autonomy, salaries, research and academic activities. The implementation of the Treasury Single Account (TSA) has been the subject of intense media scrutiny, with attention focused on its implications for the autonomy of Abia State University. This study examines how the centralization of financial resources through the Treasury Single Account (TSA) framework can affect university decision-making processes, academic freedom and general governance autonomy. In addition, the research examines the effects of the Treasury Single Account (TSA) on the timely payment of salaries to university staff. By analyzing media reports and conducting interviews with stakeholders, the study aims to assess whether the implementation of the TSA has had an impact on the payment of wages, financial stability and employee morale in the university Furthermore, the study explores how the introduction of Treasury Single Account (TSA) has affected research activities in Abia State University. By examining media stories and academic publications, the research seeks to understand whether changes in financial management practices have affected the university's research output, funding opportunities and collaborative initiatives. Finally, the impact of Treasury Single Account (TSA) on academic activities in Abia State University is a major focus of this research. Through content analysis of media coverage and interviews with teachers and students, the study aims to assess whether financial reforms have improved or hindered the quality of teaching, learning experiences and the academic programs in the university. By examining the media coverage of the introduction of Treasury Single Account (TSA) and its effects on autonomy, salaries, research and academic activity in Abia State University, this research contributes to a deeper understanding of the implications of financial reforms in higher education institutions and provide policy makers with information. university administrators and stakeholders in the education sector.

Assessing the Challenges in Managing School Funds for Heads of Secondary Schools in Kilolo District, Tanzania

This study sought to identify the “Challenges in Managing School Funds for Heads of Secondary Schools in Kilolo District, Tanzania” through a mixed approach with the population of one District educational officer, six heads of schools, six school bursars and sixty-three secondary school teachers who obtained through purposive sampling and simple random techniques. Questionnaires and interviews used to collect data. Data analysed through thematic analysis and descriptive statistics with the aid of the Statistical Package for Social Sciences (SPSS) computer software. The findings found that heads of secondary schools faced numerous challenges such as inadequate funds from the government, inconsistencies disbursement of money from the government and bureaucracy. In addition, distance (remoteness of the schools), transport cost and time consumer when heads of schools needs procurement budgets approved from the District Educational Officer, poor support from the parents and some staff as well as denying school management training on financial management issues were among the challenges. Lastly, the findings found that training, workshops, provision of seminars will enhancing the heads of schools’ financial management literacy. Moreover, heads of schools should involve other staff members, school management team (SMT), and the use of educational financial guidelines as a source of knowledge and skills to manage schools’ fiscal resources. It also recommended that the heads of schools should adhere to the proper practices of financial management through monetary auditing. Likewise, Tanzania government should provide managerial training, workshops and seminars as the best strategies to diminish financial management challenges as well as introducing financial management courses in teachers’ colleges and universities prepare experts in the schools’ financial management activities.