Financial management
Author yukta patil
Altman, & Hotchkiss, (2006).
The most important part of a financial company management is an evaluation of its financial situation, which is a summary expression of level of all company activities that a company presents itself. It is necessary that any financial decision is supported by financial analysis (Synek et al., 2011). By financial analysis we can understand a sum of activities, the object of which is to gain and to complexly evaluate a company financial situation. Financial analysis consists of perspective analysis (oriented at the future) and retrospective analysis (oriented at the evaluation of the present by results from the past). Through the retrospective analysis we can reveal causes that determined a condition of corporate finance, i.e. financial situation, and so determine company decline causes. In the research we are oriented mainly on the classic methods of financial performance evaluation. We are conscious of the fact that modern methods of performance evaluation are also currently used, but many enterprises in Slovakia still do not use these methods properly and sufficiently, thus we emphasize its importance and necessity. We also think that the modern methods should be used but as a completion of classic methods. Another reason of its emphasis is that they have a big significance in a decline indicating of which they can reveal much. When identifying possible decline
indicators that can define causes of a decline, it is necessary to choose indicators which are able to capture a decline situation (Landa, 2009). In case of insolvency, liquidity ratio indicators and net working capital can show us a lot in connection with the golden balance rule. In extension, we should be mainly interested in debt ratio indicators, differential indicator of equity, and other ratios of capital structure. Profitability and activity ratios serve to us as supplementary characteristics of decline causes that provide a broader picture.
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In the financial system, there is often a certain degree of correlation between different markets and different assets, and the occurrence of risk causes volatility spillover effects between markets. Therefore, the study of correlation is particularly important for analyzing volatility spillover effects between markets.In terms of research subjects, many scholars have measured volatility spillovers in financial markets, including energy markets, commodity markets, and gold markets. For example, Algieri and Leccadito [50] studied volatility spillovers among energy, food, and metal commodity markets, while Khalfaoui et al.In recent years, as financial globalization has continued to deepen, the linkages among financial markets have gradually strengthened. Furthermore, different markets have factors, such as market structures, trading systems, and investment environments, that differ to some extent. Moreover, with the accelerated pace of information modernization, the transmission of information between markets has become more complex and faster.
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The goal of this research is to determine how financial literacy and financial attitude influence financial management behavior in Culinary MSMEs in Rawamangun, East Jakarta City. The type of research used is explanatory research. The sampling method is probability with area sampling. Samples were collected from 50 Culinary MSMEs actors in East Jakarta’s Rawamangun Urban Village.
As the main pillars of a country’s economic activities, Micro, Small, and Medium Enterprises (MSMEs) play an important role in almost all aspects of the country’s economy.MSMEs face numerous challenges in their growth prospects in developing countries such as Indonesia, such as a lack of financial capital, human resource potential, modern technology, and many others. Statistically speaking, according to a survey conducted by the Central Statistics Agency, 93% of MSMEs have neither legal entities nor good administration system
References
Amagir, Groot et all(2020). Financial literacy of high school students in the Netherlands: knowledge, attitudes, self-efficacy, and behavior. International Review of Economics Education, 34, 100185. https://doi.org/https://doi.org/10.1016/j.iree.2020.100185
Ameliawati, & Setiyani, R. (2018). The Influence of Financial Attitude, Financial Socialization, and Financial Experience to Financial Management Behavior with Financial Literacy as the Mediation Variable. KnE Social Sciences, 3(10), 811. https://doi.org/10.18502/kss.v3i10.3174
Al-Bahrani, Weathers, & Patel, (2019).
Financial literacy is essential to increase sound financial decision-making and to reduce financial distress (Asaad, 2015; Huston, 2010; Scott, Vu, Cheng, & Gibson, 2018). Greater financial literacy leads to healthy behaviors such as budgeting, saving for emergencies, and investing for goals such as retirement (Henager & Cude, 2016). Given the critical nature of these skills, one might assume that researchers understand how financial literacy developsBasic financial education classes should increase knowledge (Mielitz, MacDonald, & Lurtz, 2018) and literacy (Al-Bahrani, Weathers, & Patel, 2019). However, well-intentioned interventions may fall short for African American students. For example, Al-Bahrani et al. (2019) reported the returns on financial education are higher for Whites than persons of color (POC).
Huston (2010) concluded that a one-size-fits-all approach to personal financial education is not effective and should instead be tailored to different demographics.
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Al-Bahrani, Weathers, & Patel, (2019). Racial differences in the returns to financial literacy education. Journal of Consumer Affairs, 53, 572-599.
Alhenawi, & Elkhal, (2013). Financial literacy of US households: Knowledge vs. long-term financial planning. Financial Services Review, 22, 211-245.
Alliman-Brissett, & Turner, (2010). Racism, parent support, and math-based career interests, efficacy, and outcome expectations among African American adolescents. Journal of Black Psychology, 36, 197-225.
Amanah, Iradianty, & Rahardian, (2016).
Young business actors have common problems related to financial management behavior, namely knowledge, and skills in managing finances. Financial management skills are a technique for making financial decisions.Financial literacy improves a company’s performance, especially when funds are available because insufficient funds interfere with the efficiency of business operations. thereby inhibiting its growth and survival. Other important factors, namely access to formal finance, lending policies of financial institutions, ease of doing business, and training programs have a major influence on the survival of companFinancial attitudes are psychological tendencies that are expressed when evaluating recommended financial management practices with varying degrees of agreement and disagreement. Financial attitudes which refer to the evaluation of ideas, events, objects, or people can help in
understanding and predicting individual financial behavior in different situations References
According to [10] Kautz (2007), financial management is the process of managing the financial resources, including budgeting/costing, accounting and financial reporting and risk management. It is handling your financial situation in a responsible manner to achieve the desired goals ([19] Mitchell, 2007). Good financial management requires good planning. The decisions you make regarding your finances will affect many aspects of the organisation life, as well as the lives of the partners.
Barrett, and Hope, (2006),
Amanah, Iradianty, & Rahardian, (2016). The Influence of Financial Knowledge, Financial Attitude and External Locus of Control on Personal Financial Management Behavior Case Study of Bachelor Degree Student in Telkom University. EProceeding of Management, 3(2),
1228-1235.
Ameliawati, M., & Setiyani, R. (2018). The Influence of Financial Attitude, Financial Socialization, and Financial Experience to Financial Management Behavior with Financial Literacy as the Mediation Variable.Financial mobilisation, planning and budgeting in education: an analysis of different budgeting strategies
Financial mobilisation for LIS schools
It has been noted that student fees, in addition to reducing institutions’ dependence on government financing, create important incentives for students to select their programmes of study carefully and to complete their studies more rapidly.Policies that seek to reduce dependence on government funding and encouraging institutions’ incentives to look for savings or generate income should be encouraged.
References
Barrett, and Hope, (2006), “Re-forecasting practice in the UK”, Measuring Business Excellence, Vol. 10 No. 2, pp. 28-40.
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Andriamahery A and Qamruzzaman M (2022),
However, small independent women entrepreneurs often lack the necessary financial literacy skills to effectively manage business risks. Financial literacy is the ability to understand and use financial concepts, including basic accounting principles, budgeting, financial planning, and investment strategies. Without adequate financial literacy skills, women entrepreneurs may struggle to manage cash flow, make informed financial decisions, and identify potential risks and opportunities. As a result, women entrepreneurs may be more vulnerable to financial shocks, including bankruptcy, debt, and reduced profitability.The importance of financial literacy for small independent women entrepreneurs has been recognized by policymakers, business leaders,
and academics.The findings of this study could inform policymakers, business leaders, and educators on how to develop effective strategies and resources to support women entrepreneurs in managing risks and building successful businesses.
References
Andriamahery A and Qamruzzaman M (2022), “Do Access to Finance, Technical KnowHow, and Financial Literacy Offer Women Empowerment Through Women’s Entrepreneurial Development?”, Frontiers inPsychology, Vol. 12, https://doi.org/10.3389/ fpsyg.2021.776844
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MF-06-2021-0260
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Sustainable financing, or “Environmental Finance” or “Green Financing”, becomes critical due to its relationship with enterprise sustainability; it is an investment decision-making process, taking into account both environmental and social aspects.
Literature reviews and expert surveys reveal that sustainable financing might improve banks’ financial risk management, as it could improve their social reputation, social capital, and operating performance [16,17]. Moreover, it can reduce banks’ environmental and legal risks Development and Measurements of Chinese Banks’ Sustainable Financing and Financial Risk Management Effects
Sustainable financing is a way to respond to the impact of COVID-19 policies in some countries, focusing on the support of green investment [29]. Nandiwardhana and Dan [30], Huang et al. [31], and Yuan and Gallagher [32] stated that banks’ primary functions in sustainable financing are financial intermediation and distribution that would be beneficial to the sustainable development of a country in terms of development innovations, building social strength, and defenses against disasters.
Refrence
Towards Green Growth; OECD Publishing: Paris, France, 2011; pp. 1-143. Available online: http://sostenibilidadyprogreso.org/files/entradas/towards-green-growth.pdf (accessed on 1 April Kennet,
Heinemann, Green Economics: Setting the scene. Aims, context, and philosophical underpinning of the distinctive new solutions offered by Green Economics. IJGE; 2006; 1, pp. 68-102. [DOI:United Nations Framework Convention on Climate Change. The Paris Agreement 2015. Available online:
https://unfccc.int/process-and-meetings/the-paris-agreement/the-paris-agreement (accessed on 1 April 2021
Financial management is vital to the survival of nonprofit organizations (NPOs) and their ability to fulfill their mission. However, financial management in NPOs is a complex management area that differs from for-profit financial managementThe fact that NPOs operate with different
financing mechanisms and a wide variety of revenue sources has implications not only for the financing of NPOs but for other aspects of financial management, such as financial planning and controlling.This complexity of financial management places high demands on competencies. In this paper, financial management competencies (FMCs) are defined as the ability to handle the financial management
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Blackwood, Pollak, (2009). Washington-area nonprofit operating reserves. Charting Civil Society Series, no. 20. Washington, DC: Urban Institute.
Brinckmann, Salomo, & Gemuenden, . (2011).
Financial management is vital to the survival of nonprofit organizations and their ability to fulfill their mission. Financial management is composed of a diverse range of tasks which require specific competencies for the success of an organization. This study explores different financial management competencies and their effect on nonprofit financial and organizational performance.
This study finds a positive relationship between financial management competencies and performance measures. This implies that practitioners should plan realistic overhead ratios to allow for adequate financial management competencies.The results provide guidance for nonprofit managers deciding on the development of specific financial management competencies. It is important that nonprofit organizations do not confine their competencies to accounting but rather they should also invest in strategic financial planning and budgeting competencies.
Reference
Brinckmann, Salomo, & Gemuenden, . (2011). Financial management competence of founding teams and growth of new technology-based firms. Entrepreneurship Theory and Practice, 35(2), 217-243. https://doi.org/10.1111/ j.1540-6520.2009.00362.x
Brown, (2005). Exploring the association between board and organizational performance in nonprofit organizations. Nonprofit Management and Leadership, 15 (3), 317-339. https://doi.org/10.1002/nml.71
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Conclusion
This research aimed to investigate the relationship between parental financial teaching,
self-efficacy, and financial behavior variables. The findings of this study emphasize the critical role of financial literacy and risk management for small and nascent women entrepreneurs in India. These factors significantly influence financial risk management and the effective utilization of finances. Moreover, financial risk management has a positive impact on sustainable financing. However, there is a negative correlation between engaging in sustainable financing and the motivation of banks to manage their financial risk. This study discussed the correlation mechanism between banks’ sustainable financing and financial risk management