Financial Managers Research Articles

Exploring the Evolution of Budgeting Practices from Traditional to Technology

Purpose: This study explores the evolution of budgeting practices from traditional to contemporary technology-driven approaches. It examines how technological advancements and organizational changes have transformed budgeting processes, highlighting the shift towards more flexible and data-driven methodologies. Research Design and Methodology: This study embarks on a journey of comprehensive literature review using a qualitative research approach. The methodology involves systematic searches of academic databases, thematic analysis and synthesis of findings from relevant studies. The research focuses on the design, implementation, and impact of both traditional and modern budgeting practices, as well as the challenges associated with technological adoption. Findings and Discussion: The findings reveal that traditional budgeting methods, characterized by hierarchical and fixed targets, must be revised in dynamic business environments. Technological innovations, such as ERP systems and cloud-based platforms, significantly improve efficiency, accuracy, and decision-making. Alternative frameworks like the Balanced Scorecard and Beyond Budgeting promote strategic alignment and organizational agility. However, challenges such as data security, integration complexities, and resistance to change remain significant barriers to full adoption. Implications: This study's findings have direct and practical implications for financial managers and policymakers seeking to optimize budgeting processes. Investing in robust data infrastructure and fostering a culture of continuous improvement is essential for leveraging the benefits of technological innovations. Future research should focus on the long-term impacts of these practices and explore strategies to overcome implementation challenges. This will help organizations achieve greater agility, responsiveness, and competitiveness in an increasingly digitalized business landscape.

Capital Allowance and Financial Performance of Manufacturing Firms

Purpose: The main objective of this study was to examine the effect of capital allowance on the financial performance of manufacturing firms in Nyeri County
 Methodology: A descriptive research design was adopted. In this study, the population comprised all the 15 manufacturing firms in Nyeri County that are registered by the Nyeri County finance department; licensing office 2023. The study used census methods to acquire information from finance managers, tax managers, and senior managers of the targeted manufacturing firms. To gather primary data, questionnaires with Likert scales were used. The study collected secondary data from the manufacturing firms' internal sources for six years. The researcher utilized descriptive statistics, including measures like the mean, standard deviation, and frequency, to analyse the data. Additionally, the study employed Pearson correlation and regression analysis to investigate the relationship between the variables and ascertain whether the independent variables could predict the dependent variable in the study. The program Statistical Package for Social Sciences (SPSS) was used to analyze the data. Data was presented in the form of tables and graphs.
 Findings: The study findings established that there exists a significant relationship between capital allowance and the financial performance of manufacturing firms in Nyeri County. Capital Allowance emerged as a crucial predictor of financial performance (Beta = 0.766. Participants expressed a positive perception regarding the influence of capital allowances on their respective firms' financial performance, with strong agreement on investment deductions, wear and tear allowance, capital allowance incentives, and overall satisfaction with the current level of capital allowances. 
 Unique Contribution to Theory, Practice, and Policy: The study was anchored on tax discrimination theory to show the effect of capital allowance on the financial performance of manufacturing sectors. The study recommended that there is a need to maintain and even improve capital allowance laws to meet taxpayers' demands and expectations and encourage investment.

Extending application of explainable artificial intelligence for managers in financial organizations

AbstractAnomalies are a significant challenge for businesses in all industries. Artificial intelligence (AI) based machine learning (ML) detection models can help find aberrant customer transaction behaviour in financial datasets. However, the output responses provided by these AI-based ML models lack transparency and interpretability, making it challenging for financial managers to comprehend the reasoning underlying the AI detections. Suppose managers cannot comprehend how and why AI models develop responses based on the input information. In such cases, AI is unlikely to enhance data-driven decision-making and add value to organizations. This article’s primary objective is to illustrate the capacity of the SHapley Additive exPlanations (SHAP) technique to give finance managers an intuitive explanation of the anomaly detections AI-based ML models generate for a specific customer transaction dataset. Theoretically, we contribute to the literature on international finance by offering a conceptual review of AI algorithmic explainability. We discuss its implications for sustaining a competitive advantage using the concepts of action design research methodology following the research onion framework. We also suggest an explainable AI implementation methodology based on SHAP as a valuable guide for finance managers seeking to boost the transparency of AI-based ML models and to alleviate trust difficulties in data-driven decision-making.

Preface: 4th International Symposium on Economics, Management, and Sustainable Development (EMSD 2023)

The volume is the collection of papers presented as the 4th International Symposium on Economics, Management, and Sustainable Development (EMSD 2023), which was held on December 30-31, 2023 in Hangzhou City, China. It was co-organized by Suzhou Branch of Zewang Investment Co., Ltd. and Hubei Yanxue Boke Cultural Communication Co., Ltd.
 The aim of EMSD 2023 is to provide a platform for accountants, financial industry practitioners, scholars, managers and graduate students from different cultural backgrounds to present and discuss research, developments and innovations in all fields of Economics, Management, and Sustainable Development. It provides opportunities for the delegates to exchange new ideas and application experiences, to establish business or research relations and to find global partners for future collaboration.
 All full paper submissions to the EMSD 2023 could ONLY be written in English, and will be sent to 2-3 reviewers and evaluated based on originality, technical or research content or depth, correctness, relevance to conference, contributions, and readability. EMSD 2023 received 71 manuscripts. And 27 submissions had been accepted by our reviewers. The Committees of EMSD 2023 invested great efforts in reviewing the papers submitted to the conference and organizing the sessions to enable the participants to gain maximum benefit.
 Conference Organizing Committees

Optimizing Portfolio Performance at PT. IAI Financial

The aim of the research carried out by the author is to analyze the composition of investment portfolios (asset allocation) that can provide the most optimal returns to provide high returns with certain risks. The approach used in this research is the case study method. The data analysis used is a descriptive method and a quantitative method, which is limited to the Pension Fund investment portfolio data at PT. IAI Financial for the 2019-2022 period. This research shows that the first proportion shows the average return generated is 12.5 with the same risk, namely 1.44. The second proportion uses the Markowitch approach. The average return generated is 5.20 with the same risk, namely 1.44. Based on the analysis of optimizing investment instruments at PT. IAI Financial above shows that the IAI Pension Fund investment results have not been able to provide optimal results, so the financial manager at PT. IAI Financial needs to look for new investment alternatives with proportions that can increase risk and return.

The Governance of Sports Organizations in Morocco: the Case of the Royal Moroccan Federation of Judo and Related Martial Arts

Governance is crucial for effective sports organization management, particularly as sports organizations increasingly adopt business models. Research inquiries into suitable governance practices in sports have grown, reflecting the evolving landscape of sports management. This qualitative research examined the governance of the Moroccan Judo Federation through semi-structured interviews and analysis using Voyant Tools. Stakeholders, including the vice president, board members, coaches, athletes, referees, technical committee members, and financial manager, provided insights on key aspects of governance. The findings emphasized the importance of strong leadership, effective decision-making processes, transparent governance structures, stakeholder engagement, and ethical conduct. However, challenges were identified in decision-making, stakeholder engagement, conflict resolution, and financial management. Stakeholders highlighted the need for inclusive decision-making processes and transparent and accountable governance practices. By addressing these challenges, the federation can strengthen its governance, support judo's growth, and foster fairness and inclusivity.

Manager sentiment and conditional conservatism

AbstractThis study examines the effect of manager sentiment on conditional conservatism. Manager sentiment refers to widely held beliefs of financial managers about their firms’ future economic prospects that are not justified by available economic fundamentals. Manager sentiment is likely to affect conditional conservative reporting because the decision to recognize unrealized economic losses in a timely manner flows from financial managers’ beliefs about their firms’ future cash flow prospects. We predict and find that manager sentiment is negatively associated with conditional conservatism, indicating that firms report less conservatively during periods of high manager sentiment (over‐optimism) and more conservatively during periods of low manager sentiment (over‐pessimism). Moreover, the effects of manager sentiment on conditional conservatism remain strongly negative after controlling for manager overconfidence. We further find that asset write‐offs are lower during high sentiment periods but higher in subsequent periods. Importantly, the manager sentiment effect on conservatism is incremental, and the opposite in sign, to the effect of investor sentiment, which has not been demonstrated in prior literature.

Determinants of capital structure in Nigeria’s quoted consumer goods firms

Although the factors that influence capital structure have been the subject of numerous prior studies, the topic of what determines the best financing combination to maximize a firm's value is still one of the most contentious in corporate finance. Furthermore, a large number of earlier research paid little attention to emerging countries and instead concentrated mostly on developed markets. To fill the gap, this study examined the factors that influence capital structure decisions in quoted Nigerian consumer goods companies that are publicly traded. The study used secondary data from the annual reports of 15 of the mentioned corporations, spanning ten years from 2011 to 2020. The association between the leverage ratio and the five explanatory variables in the model was investigated using the Panel Least Square regression approach. The study's findings showed that while growth is not statistically significant, firm size, non-debt tax shield, and firm growth all positively and significantly affect leverage. Furthermore, tangibility and profitability are negative and have a large impact on leverage. Based on the study's findings, it can be said that the capital structure of listed consumer products companies in Nigeria is significantly influenced by factors such as size, non-debt tax shield, profitability, and tangibility. The study then suggested that financial managers of listed firms in Nigeria should deploy effective measures to boost these important variables to have an optimum financing mix for their firms.

COVID-19 and CFO performance: evidence of large and medium-size companies

Purpose This paper aims to investigate the relationship between the impact of COVID-19 on the performance of financial managers of medium and large companies. Design/methodology/approach This research used the data of 173 listed large and over-the-counter as medium-size companies from 2018 to 2021. The results of these tests have been analyzed using panel data and STATA 15 software. Findings The results showed that COVID-19 has no significant relationship with the return on equity in large and medium-size companies. This variable does not significantly affect Tobin’s Q index in medium-size companies either. Other financial indicators examined in this research have decreased considerably in all companies under the influence of COVID-19. Still, the intensity of this effect is different in large and medium-size companies. Funds from borrowings and Tobin’s Q ratios in medium-size companies compared with large companies have been more severely affected by the COVID-19 disease; the return on assets, book value to market value and large companies compared with medium-size companies have been more severely and significantly affected by COVID-19; and financing funds through the issuance of shares in large companies and medium-size companies have been affected by COVID-19 almost equally. Originality/value Despite the studies related to financial crises and their effect on the performance of companies, no research has examined the financial performance indicators during the outbreak of COVID-19 in large and small companies. Therefore, the results of this research can affect different groups: financial managers and the board of directors of companies to better understand the impact of the corona disease on the company’s performance; investors benefit from research results in line with investment decisions; developing theory and educational topics for the benefit of students and studying and conducting more experimental research in this regard; and the stock exchange organization and regulatory and support institutions need to find out the depth of the disaster and the effect of COVID-19 on the performance of companies.

Sistem Pengendalian Internal Kas Pada PT XYZ

The internal control system is important for companies to maintain company assets, accuracy and reliability of data, encourage efficiency, and encourage compliance with management policies. The cash control system also needs to be considered as an effort to monitor and supervise the company's cash activities. This research aims to evaluate and determine the implementation of the cash internal control system at PT XYZ. The type of research used is qualitative with a case study approach. The data sources used in this study are primary data and secondary data. The data collection techniques in this research used interviews and documentation. The determination of informants was carried out using the snowball sampling method and the data analysis used was the Miles and Huberman model, and to test the validity of the data using triangulation techniques. The results of the research obtained data based on 4 (four) elements of the internal control system show that the existing organizational structure at PT XYZ is appropriate, then in document authorization there are documents that do not have the signature of the finance director so that it is lacking in authorizing company documents, company activities have reconciliations that are carried out regularly, and in the recruitment process there are several criteria required. So it can be concluded that PT XYZ has been said to be quite good in internal cash control so that the objectives of implementing control are achieved quite well.

Navigating Financial Distress: Altman Z-Score Predictive Power on Stock Performance

The study aims to analyze the effect of the financial ratio component in the Altman Z-Score model on the stock price. The data used is the financial report data of the agro- and marine-industry companies listed on the Indonesian Stock Exchange from 2018 until 2020. The data is analyzed using panel data analysis methods. The calculation of the Z-Score value shows how many companies in the agro- and marine sectors are potentially bankrupt. Research results show that the RE/TA ratio has a positive and significant effect on the stock price, while the WC/TA, EBIT/TA, and MVE/BVL ratios have a negative effect on the stock price. The results of this research will imply that financial managers, auditors, lenders, and investors can make the Z-Score model a valuable instrumental indicator in making the right decisions in the face of financial distress.Keywords : Financial distress; Stock Price; Financial Ratio; Altman Z-Score

MENGUASAI KEUANGAN RUMAH TANGGA DENGAN TEKNOLOGI: PELATIHAN LITERASI DIGITAL BAGI WARGA ‘AISYIYAH KECAMATAN CIBODAS KOTA TANGERANG

Financial managers using digital literacy in the family are still unfamiliar at this time. The lack of financial management in a family can trigger greater problems within it. However, when the family's finances are well planned and managed, then every member of the family will feel peace in his home. With the socialization of the use of digitalization on financial management for household mothers as well as technical guidance on using existing family financial management applications, the financial issues faced will be easier to anticipate in advance. If this problem can be solved by every family, then the purpose of a prosperous family can be realized. The dedication to the community is aimed at explaining the mastery of family financial management and providing technical guidance using Android-based financial management applications for household mothers. The post-test results showed that 79% of participants had a better understanding of how to use a family financial management app using a handheld phone device they had. This figure increased 41% of the pre-test result done before the activity was carried out.

Excel templates for an accountant and financial manager

Introduction. In today's world, where data has become a valuable currency for business, science, and society as a whole, the use of information technology is becoming increasingly important. Information technology provides us with the means not only to collect, store, and process data but also to modify, graphically represent, model, and analyze it. Today, thanks to fast and efficient transmission, data can be easily accessible and used in real-time, facilitating informed decision-making and responses to changes in the surrounding production environment. Additionally, information technology allows for the creation of convenient and intuitive interfaces for interacting with data, making it easier to work with and promoting better understanding and utilization. Purpose. Based on Microsoft Excel spreadsheet information technology, templates have been developed that can be useful for various fields of activity, especially for the work of an accountant or financial manager of an enterprise or organization. Methodology. During the research process, templates for checking and analyzing deadlines for bank payments, customers, inventory, or payroll, based on the example of a company or organization, have been developed. Also, a template for keeping a work schedule, a template for a business car travel log, and a template for an employee hiring order have been developed. All templates are adapted for use by any company, organization, or enterprise in Ukraine. Modern software, namely Microsoft Excel spreadsheets and Google Sheets tools, were used to work with the templates. Results. Using examples, it has been demonstrated that the results of using pre-designed templates allow for the most efficient utilization of the professional experience of accountants and financial managers, resulting in minimal time expenditure when compiling reporting documentation. Such an approach to the application of information technology in the professional activities of accounting, finance, and other departments of an enterprise can be used for document flow and the formation of accountability information in the operation of any enterprise over different periods of time. It also serves as an example of the work of professionals not only in the enterprise as a whole but also in its individual departments. Furthermore, the rapid compilation and analysis of reporting information using templates enable timely decision-making at various stages of small and medium-sized enterprise operations.

THE HUMAN VARIABLES WITHIN BUDGETARY CONTROL AND THEIR IMPLICATIONS ON FINANCIAL PERFORMANCE AT HEIS

Budgets and budgetary controls are important components of management control intended to encourage resource utilization efficiency in support of the achievement of company strategic goals. Budget control aims to observe transparency and legality at all stages of the budget process to ensure responsible and effective performance by the state of its functions and tasks regarding the formation and spending of budget funds. This study evaluates how employee budget involvement and performance relate in a Ghanaian public university, specifically the University of Education. The University of Education was chosen as the study location to determine the relationship between budget participation and employee performance in Ghana's public universities. Because the government owns 100% of Ghana's public universities and because these institutions are subject to government oversight, the researchers believe that using a single case study is suitable. Throughout the investigation, a multi-analysis and participative strategy was used. Employee performance is evaluated for the research based on how well they contribute to the organization's achievement of the budget objective. The study's particular focus is on the behavioral aspects of budgeting procedures and the effect of budget participation on employees' effectiveness in meeting defined budgetary objectives. The researcher chose 110 respondents who are University of Education staff members using basic random sample and convenience sampling procedures. It is clear from our study that employee participation in the budgeting process is the cornerstone of achieving budget goals because it will enable employees to have a clear understanding of what the budget is meant for, have a voice by ensuring that resources are distributed fairly among departments and faculties of the university. From this, it is obvious that we accept our null hypothesis, according to which budget participation increases employees' performance and their view of the fairness of resource distribution and budget goal clarity. Future studies might also encompass the perspectives of key management figures such as Registrars, Directors of Finance, Vice Chancellors, and other essential officers who play significant roles in the budgeting process of these public universities.

The Extent to Which Industrial Companies in Aqaba Apply Budgetary Estimates As A Tool For Planning And Control

The research aims to study The Extent to Which Industrial Companies in Aqaba Apply Budgetary Estimates As A Tool For Planning And Control, The study utilized a descriptive-analytical methodology, where the primary data collected from the sample individuals will be described and analyzed. The study will employ appropriate statistical methods such as the mean, t-test, and standard deviation. The SPSS system was employed for data analysis, where A random sample of industrial companies was selected, and questionnaires were distributed to department heads, financial managers, cost accountants, and administrative accountants. finally, the research provided many results, such as: (a) Industrial companies’ managements in Aqaba city recognize the importance of applying budgeting in the planning and control process, with a rate of 78%. The highest awareness is related to the control and regularity of cash flows, while the lowest awareness pertains to the budget as an organized means to communicate plans at all management levels. (b) Industrial companies in Aqaba city adhere to the principle of flexibility in preparing budget estimates, with a rate of 68%. The highest score is associated with considering the budget as an ongoing process that always spans 12 months. Conversely, the lowest adherence is observed in adjusting budget figures based on changing circumstances. Keywords: Planning And Control – Industrial Companies – Aqaba

Capital Structure, Dividend Policy and Firm Value of Listed Non-Financial Companies in Nigeria.

A balance is required for optimal capital structure and dividend policy becomes crucial, as an imbalance could result in increased debt burdens, higher interest payments, and reduced overall profitability. Additionally, such misalignment might erode investor confidence, causing fluctuations in stock prices and, in extreme cases, leading to a decline in market capitalization. Given the foregoing, this study examined the effect of capital structure and dividend policy and firm value of listed non-financial firms in Nigeria. To achieve these objectives, ex post research design was employed and the study utilized seventy (70) selected listed non-financial firms that had consistently published their audited annual financial reports from 2011 to 2022. The study analyzed the data using panel multiple regression technique with the help of statistical tools (E-view 10). The result of the study revealed that debt-to-equity ratio has negative and insignificant effect on firm value of listed non-financial firms. On the other hand, the study found that dividend per share has a significant effect on firm value. Thus, the study recommended that financial management decisions related to capital structure of non- financial companies should take into account the trade-off between potential benefits and risks associated with debt financing. Also, financial managers are advised to integrate thoughtful dividend management seamlessly into their broader corporate finance strategy. This proactive and adaptive approach ensures that companies remain competitive, responsive to changing circumstances, and capable of optimizing their overall value in the market.

Artificial intelligence and financial decisions: Empirical evidence from developing economies

Recent technological advancements are endless and have had a profound influence on everyone in every part of life throughout the preceding decades. Artificial intelligence is one such invention that has the potential to change the world. Now, artificial intelligence is being used in almost all commercial operations. Hence, this research attempted to investigate the impact of artificial intelligence dimensions, including natural language processing, machine learning, expert systems, and computer vision on the financial decisions of pharmaceutical companies in Jordan. A cross-sectional approach was used through a comprehensive survey to collect research data from 148 accountants and financial managers in pharmaceutical companies listed on the Amman Stock Exchange with a response rate of 81.3%. The research hypotheses were examined using structural equation modeling of the collected quantitative data. The results indicated that the dimensions of artificial intelligence positively impact financial decisions. Accordingly, companies should spend on building strong artificial intelligence infrastructure and skills. Access to modern artificial intelligence technology, data analysis tools and cloud computing resources are also essential to rationalizing financial decision-making. Besides, Jordan's pharmaceutical sector can overcome these limitations and realize the full potential of artificial intelligence in financial decision-making by solving data privacy issues, encouraging ethical AI re-search, investing in artificial intelligence expertise, and enhancing collaboration.

ПРИКЛАДНИЙ АСПЕКТ ДИСКОНТУВАННЯ ТА МОДЕЛЬ РОЗРАХУНКУ АМОРТИЗАЦІЇ ДИСКОНТУ ПРИ ОЦІНЦІ ДОВГОСТРОКОВИХ АКТИВІВ ТА ЗОБОВ’ЯЗАНЬ

The article is dedicated to substantiating the methodology for calculating the discounted value of long-term assets and liabilities and the calculation of discount amortization. It is noted that long-term assets and liabilities should be presented at their current value, necessitating the use of discounting as a tool. This process, however, is interpreted differently by accounting professionals, financial managers (as internal stakeholders), and tax authorities (as external stakeholders). Additionally, it involves numerous factors that cannot be strictly regulated, potentially leading to risks of misrepresenting income in financial statements. Therefore, to coordinate actions among various levels of a company’s financial department and to avoid legal disputes with fiscal authorities, it is crucial to justify at all management levels the importance of bringing long-term cash flows to their present value and reflecting them at this value in financial statements. he main objective of the article is to develop and substantiate an algorithm for calculating discount amortization, which is used in the valuation of long-term financial assets and liabilities. By applying the classical model of present value calculation through discounting, the authors demonstrate how this algorithm can be used to obtain an accurate valuation of assets and liabilities at different stages of their life cycle. Through a systematic approach and the use of general scientific and specialized methodological techniques, it is shown that the calculation of discount amortization for longterm assets and liabilities is based on a standard discounting model and produces derivative results used in accounting in accordance with national and international standards. The article includes an analysis of a practical example illustrating the application of the developed algorithm. Based on this example, it is proven that the proposed algorithm aligns with the fundamental principles of financial mathematics and has significant practical potential. The authors emphasize the importance of this approach in ensuring the accurate accounting of long-term liabilities and assets, which, in turn, contributes to the accuracy of financial reporting and reduces risks associated with tax obligations.

The Impact of Financial Management Efficiency on the Financial Solvency of Banks on Iraq

The study aims to investigate the impact of financial management efficiency (financial planning, internal control, administrative control) on the financial solvency of Iraqi banks. The quantitative approach was used by developing a digital questionnaire that was distributed to a purposive sample of the study population, which includes senior management employees (General Director, Deputy Director, Financial Manager Administrative Manager) in the Iraqi banking sector, which number (13) banks. 99 valid questionnaires were retrieved for statistical analysis, and to answer the study’s questions and hypotheses, the data were analyzed using SPSS.

The Impact of Capital Structure on Firm Financial Performance in Oil and Gas Sector in Sultanate of Oman

This study examines the relationship between capital structure and financial performance within the oil and gas sector in the Sultanate of Oman, focusing on companies listed on the Ministry of Energy and Minerals over the period of 2021-2023. The research investigates how different capital structure components, such as debt-to-equity ratio, leverage, and debt maturity, influence various financial performance indicators, including profitability, liquidity, and shareholder value. The study aims at offering insights into the best capital structure strategies for oil and gas firms in Oman to improve their financial performance and sustainable growth using quantitative analysis methodologies, such as regression analysis and financial ratio analysis. It is anticipated that the research’s conclusions will add to the body of knowledge already available on capital structure and financial performance, with important ramifications for investors, financial managers, legislators, and other industry participants in Oman’s oil and gas sector and beyond.