An evaluation of financial management practices in tier 3 state owned enterprises in Namibia

The success or failure of any organisation whether public or private is reckoned on the governance and effectiveness of its financial management practices. Moreover, financial management practices have an impact on a broad range of areas within an organisation, including, aggregate financial management, operations management, governance and fiduciary risk management. Consequently, the main objective of this study was to evaluate the financial management practices in Tier 3 SOEs in Namibia. Specifically, the study investigated the current financial management practices adopted by Tier 3 SOEs in Namibia and to determine their effects as well as to identify the challenges regarding the implementation of financial management practices. The study employed a descriptive survey research design to collect the data on financial management practices from the CEOs, Accountants and Financial Directors/Managers (FD/Ms) of Tier 3 Namibian SOEs. Semi - structured questionnaires were used to collect the primary data and all data was entered and analysed using SPSS v.26. Descriptive analysis was done and the results were presented in tables, figures and charts. The findings show that, financial planning and control, reporting and analysis of financial, working capital management and capital structures management practice are current financial management practices adopted by Tier 3 SOEs in Namibia. Companies have good financial performance. Lack of advanced knowledge and skills was one of the challenges experienced in the implementation of financial management practices in the SOEs. Failure to fill vacant positions and lack of support from leadership (management) were also identified as challenges that hinder the implementation of the financial management practices. Therefore, the study recommends that the managers in SOEs should highly prioritise financial management practices during the formulation of their organisation's strategies to enhance transparency, accountability and consistency in financial operations. Finally, the study also recommends that regulatory bodies should formulate appropriate policies and regulations which would facilitate the implementation of financial management practices in companies.

Grantor dc:publisher

University of Namibia

Year dc:date.issued

2022

Author dc:creator

• Veroonika, Petrus

Language dc:language.iso

en

Handle dc:identifier.uri

http://hdl.handle.net/11070/3907

OAI identifier oai:identifier

oai:repository.unam.edu.na:11070/3907