INFLUENCE OF FINANCIAL MANAGEMENT PRACTICES ON FINANCIAL PERFORMANCE OF NATIONAL MUSEUMS OF KENYA
Abstract
This study sought to examine the influence of financial management practices on the financial performance of National Museums of Kenya. The study was grounded on the theory of modern portfolio, priority based budgeting theory, prospect theory and contingency theory. This study adopted descriptive design to describe the influence of financial management practices on financial performance of national museum of Kenya and targets 201 employees from the finance department of National Museums of Kenya. The sample size for the study was 67 respondents selected through simple sampling from the three levels of management at the department of National Museums of Kenya. Secondary panel data were collected through reports, financial statements and other relevant audit reports for a period of five years. Questionnaire was also used to collect the primary data for the study. The study performed a pilot study to determine the reliability and validity of the research instrument. The pilot result revealed that the instrument was reliable and hence was adopted in the main study. The data for the main study was later subjected for thorough analysis in order to draw inferences. The key findings of the study showed that financial planning, cash flow management and risk management practices positively and significantly influenced financial performance of National Museums of Kenya. However, budgeting practices was found to have a significant negative influence on the financial performance of National Museums of Kenya. The study therefore concluded that financial planning, cash flow management and risk management practices affect financial performance of National Museums of Kenya whereas budgeting practices negatively influence financial performance of National Museums of Kenya. The study hence recommended for strengthening of financial planning, cash flow management and risk management practices to safeguard and sustain their financial performance. The study suggested that further studies could be done on other segments of nonprofit making public entities in Kenya to compare the results and advise for policy formulation.
Keyword: Cash Flow Management, Financial Management, Risk Management
CITATION: Omar, T. G., & Njeru, A. (2024). Influence of financial management practices on financial performance of National Museums of Kenya. The Strategic Journal of Business & Change Management, 11 (2), 1136 – 1151. http://dx.doi.org/10.61426/sjbcm.v11i2.2974
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DOI: http://dx.doi.org/10.61426/sjbcm.v11i2.2974
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