Internal control systems, working capital management and financial performance of supermarkets

Autor: Frank Kabuye, Joachim Kato, Irene Akugizibwe, Nicholas Bugambiro
Jazyk: angličtina
Rok vydání: 2019
Předmět:
Zdroj: Cogent Business & Management, Vol 6, Iss 1 (2019)
Druh dokumentu: article
ISSN: 2331-1975
23311975
DOI: 10.1080/23311975.2019.1573524
Popis: The purpose of this paper is to examine the contribution made by the internal control systems and working capital management on financial performance of supermarkets. This study is cross-sectional and correlational, and it uses firm-level data that were collected by means of a questionnaire survey from a sample of 110 supermarkets in Uganda. Results suggest that working capital management is a significant predictor of financial performance. Contrary to previous thinking internal control systems do not significantly predict financial performance. Therefore, once organizations have appropriate working capital management, they are also likely to have adequate internal control systems that enhance financial performance. This study focuses on supermarkets in Uganda, and it is possible that these results are only applicable to the supermarkets. More research is therefore needed to further understand the contribution of the internal control systems and working capital management on financial performance in other sectors. The results are important for internal control and working capital policy development, for example, in terms of prescribing the internal control systems and working capital requirements for the organizations to enhance financial performance. Internal control systems and working capital management have apparently hitherto been the subject of limited consideration by most supermarkets in Uganda. Nevertheless, this study, in possibly the most thorough treatment so far, highlights the areas requiring improvement to enhance financial performance.
Databáze: Directory of Open Access Journals
Externí odkaz:
Nepřihlášeným uživatelům se plný text nezobrazuje