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The Core Proposition of the Treasury Reform and Assignment of Power and Responsibility
Issue:
Volume 5, Issue 2, April 2019
Pages:
9-16
Received:
23 April 2019
Accepted:
30 May 2019
Published:
10 June 2019
Abstract: The modern treasury system is the core component of the modern fiscal institution, but it draws little attention and is rarely discussed by domestic academics, until the now-present there still lacks of appropriate discourse. In practice, the functional imbalance of the current treasury system in China is very obvious. One prominent problem is the looseness and vulnerability of budget execution control, which has given rise to the ubiquitous phenomenon of public fund precipitation, frequent budgetary adjustment, tardy payment schedule, and cash rationing. Another problem is the high-level decentralization of government cash balance caused by indiscriminate special fiscal account setup，and the decentralization has greatly weakened the core functions of the national treasury. This paper will clarify two core propositions of institutional reform of the state treasury, including the whole-process budget execution control based on the expenditure cycle, and the government cash management based on the centralization of cash balances. It is expected to construct an appropriate framework of the assignment of power and responsibilities for the treasury system, and promote the deepen reform of the state treasury, building up the coordinating roles of the Ministry of Finance and the People’s Bank of China in the modern fiscal institution and supporting the modern treasury system functions.
Abstract: The modern treasury system is the core component of the modern fiscal institution, but it draws little attention and is rarely discussed by domestic academics, until the now-present there still lacks of appropriate discourse. In practice, the functional imbalance of the current treasury system in China is very obvious. One prominent problem is the ...
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The Prime Risks of Financing Small and Medium Enterprise (SMEs) Business-Projects in Developing Economies
Issue:
Volume 5, Issue 2, April 2019
Pages:
17-28
Received:
28 March 2019
Accepted:
15 May 2019
Published:
12 June 2019
Abstract: The importance of project finance in economic development cannot be underestimated. Currently, most developing economies are collaborating with private individual investors and organizations, as well as financial and none financial institutions to attain the desire level of development through business-projects implementation. However, typical of most business-project implemented in developing economies is the numerous risks associated with its financing activities. The term risk can be viewed as the chance of failure in achieving objectives or goals. Most importantly, risk is part of investing but it can be measured and managed within an investment portfolio and taking on some risk is necessary for higher returns. Also, taking on greater short-term risks may be necessary to receive the long-term returns needed to achieve a lifestyle goals and objectives. However, taking on too much risk may prove to be a mistake. It is important to note that every business-project requires a substantial amount of capital outlay from individuals, sponsors, organizations financial and none financial institutions and or government. This therefore call for a holistic study to be conducted to identify the prime risks of financing business-projects. This will help to provide thoughtful information on those risks to investors, sponsor, fund providers (individuals / financial institutions) and entrepreneurs with special interest in business-project financing. This study focused on the identification of the prime risks investors face in financing SMEs business-projects in developing economies. In this regard, the prime risks of financing SMEs business-project is the independent variable and business-project activities is the dependent variable. To measure the prime risk of financing SMEs projects in developing economies, this study dwelt on behavioral economics theory to identify what the study term as Idea Risk. The study also reviewed finance and financial management theories to identify what the study term as Competency Risks and Return on Investment Risks. Through this study, Business Idea Risk, Competency Risk and Return on Investment Risk have been identified as the prime risks of financing business-projects. This study has also developed a graphical model to present these prime risks, prove the inter-connectivity among the risks and as well demonstrate how they can collectively have negative impacts on business-projects.
Abstract: The importance of project finance in economic development cannot be underestimated. Currently, most developing economies are collaborating with private individual investors and organizations, as well as financial and none financial institutions to attain the desire level of development through business-projects implementation. However, typical of m...
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Effect of Working Capital Management on Profitability of Listed Manufacturing Companies in Ghana
Jacob Akomeah,
Siaw Frimpong
Issue:
Volume 5, Issue 2, April 2019
Pages:
29-35
Received:
31 March 2019
Accepted:
15 May 2019
Published:
26 June 2019
Abstract: Working capital management plays a vital role in the success of businesses because of its effect on profitability. The purpose of this study is to examine the effect of working capital management on the profitability of listed manufacturing firms in Ghana. The study used secondary data collected from seven (7) manufacturing firms listed on the Ghana Stock Exchange for a period of ten years (2005-2014). The profitability as dependent variable was measured in terms of gross operating profit. The working capital was determined by Accounts Receivables Period, Accounts Payables Period, Inventory Conversion Period and Cash Conversion Cycle are used as independent variables. Moreover, current ratio used as liquidity indicator and firm size as measured by logarithm of sales are used as control variables. Data was analysed using the Fixed-Effects model of the Panel data regression. The regression results revealed that account receivables period (ARP) and inventory conversion period (ICP) days had a statistically significant negative impact on the profitability whiles account payables period (APP) days had insignificant positive effects on the profitability. The study, on the other hand found out that cash conversion cycle (CCC), current ratio (CR), and firm size (LOS) had a significant positive impact on the profitability. The study recommended that manufacturing firms should adopt efficient and effective ways of managing these components of working capital management.
Abstract: Working capital management plays a vital role in the success of businesses because of its effect on profitability. The purpose of this study is to examine the effect of working capital management on the profitability of listed manufacturing firms in Ghana. The study used secondary data collected from seven (7) manufacturing firms listed on the Ghan...
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