Effect of Financial Management Practices On Profitability Of Matatu Transport Industry In Kenya
| Autor: | David K. Kamau, Joseph Kimani Mwangi, Robert Otuya |
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| Rok vydání: | 2014 |
| Předmět: | |
| Zdroj: | IOSR Journal of Economics and Finance. 5:90-100 |
| ISSN: | 2321-5933 2321-5925 |
| Popis: | Financial Management Practices Are Vital In Any Investment Opportunity. The Effect Of Financial Management Practices On The Profitability Of Organizations Has Not Been Clearly Understood. This Study Aimed At Assessing The Effect Of Financial Management Practices With Respect To Capital Structure And Cost Of Capital On Profitability And Find Out The Extent Of Its Utilization In The Matatu Industry. The Significance Of The Study Was To Create Awareness To Investors And Help Them In Financial Management Practices, Add To The Existing Knowledge And Help The Government In Policy Formulation. The Survey Research Design Was Employed Where The Respondents Were Selected Through A Stratified Random Sampling. Data Was Analyzed Using Descriptive Statistics, Correlation, Factor Analysis And Regression. Equity Capital Was Preferred While Debt Financing Was Used On A Smaller Scale. The Decision To Use Debt Is Largely Influenced By Its Cost And The Attendant Risk, That Is, The Potential Of Not Covering The Debt From The Cash Flows From Operations. Cost Of Capital And Capital Structure Attributed To 94.1% Of Changes In Profitability In Matatu Industry. The Study Recommends That Matatu Transport Industry Should Seek New Ways For Members To Access Loans At Lower Rates By Entering Into Funding Commitments With The Financial Institutions. Therefore Mechanisms Should Be Put In Place To Ensure Good Financial Management Practices. |
| Databáze: | OpenAIRE |
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