Evaluating the Impact of Financial Management Practices on an Organization’s Financial Performance: A Case Study of Hwange Colliery Company


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Authors

  • Newman Wadesango University of Limpopo, South Africa
  • Justice Walter Ruwende Midlands State University, Zimbabwe
  • Lovemore Sitsha Midlands State University, Zimbabwe

DOI:

https://doi.org/10.32479/ijefi.14275

Keywords:

Financial Management Practices, Fixed Assets Management, Capital Structure, Investment Practices

Abstract

The purpose of the study was to establish the impact of financial management practices on an organization’s financial performance. This analysis was driven by the organization’s declining profitability despite the efforts to deploy cost-cutting initiatives. As a consequence, the research looked into the impact of existing procedures in working capital management, fixed assets management, capital structure and investment practices. The descriptive research design was used in the study and quantitative research approach was adopted. The administrative personnel at Hwange Colliery Company, which numbered forty six, comprised the population and a sample of 30 was used. A questionnaire survey with structured questions was utilized. In the study, regression analysis and Pearson coefficient of correlation were employed to determine the link between the factors of financial performance and financial management techniques. It emerged that the financial management strategies had a substantial impact on Hwange Colliery Company financial performance. To maintain resource efficiency, the research recommends improvements in the areas of accounts receivable management and investment decision that is leading to losses if wrong decision are made.

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Author Biographies

Justice Walter Ruwende, Midlands State University, Zimbabwe

Student in the Faculty of commerce 

Lovemore Sitsha, Midlands State University, Zimbabwe

Lecturer in the Faculty of Commerce 

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Published

2023-11-11

How to Cite

Wadesango, N., Ruwende, J. W., & Sitsha, L. (2023). Evaluating the Impact of Financial Management Practices on an Organization’s Financial Performance: A Case Study of Hwange Colliery Company. International Journal of Economics and Financial Issues, 13(6), 203–208. https://doi.org/10.32479/ijefi.14275

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Articles