Factors influencing financial management in state corporations: the case of Muhoroni sugar company factors influencing
Loading...
Date
2013
Authors
Nyakondo, Richard Mobutu
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
The purpose of this research was to identify independent variables and intervening variables
and examine how they influence financial management in Muhoroni Sugar Company Ltd,
which is on its deathbed as a result of poor financial management and embezzlement of its
resources. Muhoroni Sugar Company Ltd, which for many years used to be one of the vibrant
and _efficiently managed sugar producing mills in the country is ailing and headed for a total
collapse. The company has been slowed down by ageing infrastructure, high production
costs, failure to impress technological change, and weak financial controls and accounting
systems, among other factors. State Corporations in Kenya are facing financial management
challenges and as a result they have to adopt International Public Sector Accounting
Standards (IPSASs) as a tool to improve transparency, efficiency and effectiveness in service
delivery. The purpose of this study was therefore to identify the factors influencing financial
management in state corporations in Kenya. The research was conducted in Nyanza Province,
Kenya, aiming to explore the factors influencing financial management in Muhoroni Sugar
Company Limited. The main objective of the study was to identify the factors influencing
financial management in state corporations and how they impact on their performance. This
study therefore adopted a case study design methodology because the researcher intended to
collect data on factors influencing financial management in Muhoroni Sugar Company Ltd
which is currently in receivership. The main instrument of data collection was a structured
questionnaire which was administered to Muhoroni Sugar Company's Board of Directors,
Managers and Supervisors, targeting 35% of the population of interest through stratified
simple random sampling. The target population of this study consisted of 12 Board of
Directors, 20 Managers and 60 Supervisors of Muhoroni Sugar Company Limited. Since the
researcher wanted to get the clear and unquestionable facts of this research, he also included
60 Supervisors in the target population so that the researcher was able to compare the
information received from them in relation to the one the Board of Directors and the
Managers gave. The data collection procedure used to collect the questionnaire was drop and
pick approach. The research questions were systematically generated from the objectives.
The data collected was coded, analysed and presented using simple frequency distribution
tables, graphs, pie charts, and percentages with the aid of SPSS package. The data collected
was analyzed through the use of quantitative and qualitative analysis. A regression model was
used to analyze internal and external factors influencing financial management in Muhoroni
Sugar Company Ltd. The researcher used both primary data and secondary data. Primary data
was collected by way of a semi-structured questionnaire consisting of open ended and closed
ended questions. Secondary data was gathered from magazines, newspapers and company
journals. Questionnaires were used because they are easy to read and answer. Literature was
reviewed from those related to financial management in state corporations especially the
sugar industry in Kenya. Extensive literature was reviewed on items of specific objectives
influencing financial management in state corporations. The purpose of this study was not
only to acknowledge contri butions of others but also to exam ine if the Iiterature supported the
study.
Description
Department of Accounting and Finance, 79p. 2013, HD 4295 .K5N9