ROLE OF CASH PLANNING TECHNIQUE ON FINANCIAL PERFORMANCE IN PUBLIC HOSPITALS IN KAJIADO NORTH SUB-COUNTY
DOI:
https://doi.org/10.47941/ijf.166Keywords:
Cash planning technique, financial performance, Public Hospitals in Kajiado North Sub-CountyAbstract
Purpose: The purpose of this study was to determinethe role of cash planning technique on financial performance in public hospitals in Kajiado North sub-county.
Methodology: The study adopted a descriptive survey design.The target population for this research study consisted of government/ public hospitals. The target population wasfour government hospitals and medical centres located in townships of Kajiado North sub –county. This study therefore used all the 30 accounts/ finance employees and the 6 six senior medical officer/ superintendents.The questionnaires were distributed via drop and pick and email, also online survey was used and this minimized the problem of non-response rate
Results:The study sought to find out how cash planning affects financial performance, the study did confirm that cash planning affects financial performance. The study established that majority of the respondents agreed that indeed cash flow was well managed at these public hospitals. The overall mean obtained on financial performance was 3.95 indicating a strong mean that is leaning towards agree in a five point likert scale. The combined effect model that was computed explained the variation in financial performance of public hospitals in Kajiado north Sub County.
Policy recommendation: The study recommended that the there is need to strengthen cash collection avenues by encouraging payment in other forms and move from cash payments, with the advent of M-pesa and cash payments to banks where this can be audited for proper payment systems’, The study also recommended that there is need to digitize accounts records since with the huge number of persons seeking services, it becomes a big challenge to audit all receipts and to do areconciliation between cash and bank. The study further recommended there is need to modernize equipment at these hospitals using these funds/ monies as majority of the operations is funded by the exchequer this is in line with devolution and also in promoting sustainable development goals.
Downloads
References
Abioro, M. (2013). The impact of cash management on the performance of manufacturing companies in Nigeria. Uncertain Supply chain management, 1(3), 177-192.
Aksoy, A., (2005). Working Capital Management. (1st Ed).Ankara: Gazi Publication.
Almajali, A. Y., Alamro, S. A., & Al-Soub, Y. Z. (2012). Factors Affect the Financial Performance of Jordanian Insurance Companies Listed at Amman Stock ExchangeJournal of Management Research, 4, ( 2).pp30-40
Archer, S. H. (1966). A model for the determination of firm cash balances. Journal of Financial and Quantitative Analysis, 1(01), 1-11.
Arnold, G. (2008). Corporate financial management. London: Pearson Education.
Baumol, W. J. (1952). The transactions demand for cash: An inventory theoretic approach. The Quarterly Journal of Economics, pp545-556.
Beranek, W. (1963). Analysis for financial decisions. RD Irwin, Incorporated.
Block, S. B., Hirt, G. A., & Danielsen, B. R. (2009). The Goals and Functions of Financial Management.Foundations of Financial Management,(13th Ed).Irwin: McGraw Hill
Brealey, R. A., & Myers, S. C. (2003). Capital investment and valuation. Boston: McGraw Hill Professional.
Brigham F. Eugene and Houston F. Joel (2012). Fundamentals of financial management,(7th Ed). Mason: Thomson South-Western.
Brigham, E. F., & Houston, J. F. (2012). Fundamentals of financial management. Australia: South- Western Cengage Learning.
Cooper, R.D. & Schindler, P (2006). Business research methods, (9th Ed). Boston: McGraw-Hill.
Hirt, G.A., &Block, S. B. (2006).Fundamentals of investment management. Boston: McGraw Hill.
Lasher R. William (2011).Financial management: A practical approach,(6thEd).Australia: South-Western Cengage.
Lemmack J. Robin and Fox F. Alan (1988),Managerial finance.London: Cassell Educational Limited.
Liargovas, P. G., & Skandalis, K. S. (2008). Motivations and barriers of export performance: Greek exports to the Balkans. Journal of Southern Europe and the Balkans, 10(3), 377-392.
Lockyer, K. G. (1973). Cash as an item of stock.Journal of Business Finance, 5(1).
Mathooko, J.M., Mathooko, F.M., &Mathooko, P.M., (2007). Academic Proposal writing: A guide to preparing proposals for academic research.Nakuru: Amu Press.
McGuigan R. James, Moyer R. Charles and Kretlow J William (2012).Contemporary corporate finance,(12th Ed). Australia: South-Western Cengage.
Miller, M. H., & Orr, D. (1966).A Model of the Demand for Money by Firms.The Quarterly journal of economics,pp 413-435.
Moyer RC, McGuigan JR, Kretlow WJ. (1992). Contemporary financial management, USA: West Publishing Company
Mugenda, Olive M. and Mugenda A. G. (2003).Research methods: quantitative and qualitative Approaches,(Revised Ed). Nairobi: Acts Press.
Nyamao, N. R., Patrick, O., Martin, L., Odondo, A. J., &Simeyo, O. (2012). Effect of working capital management practices on financial performance: A study of small scale enterprises in Kisii South District, Kenya. African Journal of Business Management, 6(18), 5807.
Ondiek,B.A.,Deya,F.O.andBusaka,J.N.(2013) Cash management technique adopted by small and medium level enterprises in Eldoret town. Kenya research journal of finance and accounting 14, (18),2013
Ondieki, A. N., Okioga, C., Okwena, D. K., &Onsase, A.(2011). Assessment of the effects of performance management practices on provision of financial services by Savings and Credit Cooperative Societies: A case of GusiiMwalimu SACCO.Kisii Central District, Kenya.
Pandey IM (2011). Financial management, (10th Ed).New Delhi: Vikas publishing house.
Pinches, G. E. (1997).Essentials of financial management,(4th Ed). London: Addison-Wesley Educational Publishers, Inc.
Polit, D. F., & Beck, C. T. (2006). The content validity index: are you sure you know what's being reported? Critique and recommendations.Research in nursing & health, 29(5), 489-497.
Rehn Erik (2012). Effects of working capital management on company profitability.
Ross, S. A., Westerfield, R., & Jordan, B. D. (2008).Fundamentals of corporate finance. Tata: McGraw-Hill Education.
Saleemi N. A. (2009). Financial accounting, (2nd Ed). Nairobi: Saleemi Publications Ltd.
Saunders,M.,Lewis,P.andThornhill,A.(2003).In Research Methods for Business Students. London:Pitman.
Smith, C. P. (2000). Content analysis and narrative analysis.Handbook of research methods in social and personality psychology, pp313-335.
Srinivasan, V., & Kim, Y. H. (1986).Deterministic cash flow management: state of the art and research directions. Omega, 14(2), 145-166.
Stone, B. K. (Spring, 1972). The Use of forecasts and smoothing in control limit models for cash management. Financial management, 1(1), 72−84.
Van Horme C. James (1989). Financial; management and policy (9th Ed). New Delhi:Prentice international inc.
Waweru Kennedy Munyua (2011). An investigation into the cash balance management approaches in saving and credit cooperative societies (SACCOs) in NakuruCounty, Kenya.Journal of Business Studies Quarterly(2011), 2, (4), pp. 17-26.
Weygandt, J. J., Kimmel, P. D., Kieso, D., & Elias, R. Z. (2010).Accounting principles.Issues in Accounting Education, 25(1), 179-180.
WZikmund, W. G., Babin, B. J., & Carr, J. C. Dan Griffin, M.(2010). Business research methods.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2017 Sarah Tarus, Dr. Dennis Juma
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution (CC-BY) 4.0 License that allows others to share the work with an acknowledgment of the work’s authorship and initial publication in this journal.
