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The impact of financial management practices on financial performance: Empirical evidence from a Ghanaian public university

Author

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  • Thomas Nkrumah

    (University of Mines and Technology)

  • Emmanuel Kwanena Yeboah Smith

    (University of Mines and Technology)

Abstract

This study investigates the impact of specific financial management practices on the financial performance of the University of Mines and Technology (UMaT), Ghana. This done by utilizing a mixed-methods approach. Data were collected from 55 staff in the Finance and Audit departments via questionnaires and semi-structured interviews. A Tobit regression model was employed to analyse the quantitative data, testing the influence of budgeting and budgetary control, financial reporting and transparency, internal controls and audit practices, and cash flow management on financial performance. The findings reveal that financial reporting and transparency (β = 1.23, p = 0.001), and cash flow management (β = 1.05, p = 0.002), have the most significant positive impact on financial performance. Budgeting and budgetary control showed a moderate positive effect, while internal controls had a weaker influence. The study, framed by the Resource-Based View and Contingency theories, concludes that enhancing transparency and cash flow efficiency are the most critical levers for improving financial health in public higher education institutions in developing contexts.

Suggested Citation

  • Thomas Nkrumah & Emmanuel Kwanena Yeboah Smith, 2025. "The impact of financial management practices on financial performance: Empirical evidence from a Ghanaian public university," International Journal of Business and Management (IJBM), International Emerging Scholars Society (IESS), New Zealand, vol. 4(2), pages 477-516, December.
    • Handle: RePEc:cwd:ijbmnz:v:4:y:2025:i:2:p:477-516
    DOI: 10.56879/ijbm.v4i2.240
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    References listed on IDEAS

    as
    1. Odd J. Stalebrink & John F. Sacco, 2003. "An ‘Austrian’ perspective on commercial accounting practices in the public sector," Accounting Forum, Taylor & Francis Journals, vol. 27(3), pages 339-358, September.
    2. Lexis Alexander Tetteh & Cletus Agyenim-Boateng & Samuel Nana Yaw Simpson & Daniel Susuawu, 2021. "Public sector financial management reforms in Ghana: insights from institutional theory," Journal of Accounting in Emerging Economies, Emerald Group Publishing Limited, vol. 11(5), pages 691-713, May.
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