Impact of Financial Management Practices in Public Sector

This research paper analyzes the impact of financial management practices in the public sector using Etisalat as a case study. The paper reviews literature on the topic, discusses data collection and methodology, and presents a time scale. The main research question is: What is the impact of financial management practices in the public sector? The paper concludes that financial management practices play a crucial role in the performance of public sector companies and the policies must be changed accordingly.

Running Head: Financial Management
1
Financial Management Practices or Systems in Public Sector

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Contents
Introduction:.....................................................................................................................3
Research question:............................................................................................................3
Literature review:..............................................................................................................3
Data collection and methodology:....................................................................................7
Time scale:........................................................................................................................8
References:.....................................................................................................................10

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Introduction:
Financial management practices in the public sector is quite crucial as it improve the
public management as well as the understanding labour the politics and public institution
about the financial performance of an organization. High quality financial information in the
public sector allows a complete and accurate assessment and impact on the policy decision. It
supports the governments to identify the taxpayers, investors etc. As well as the financial
management also make it easier to plan and prepare the budgeting, monitoring accountability
in the business. The financial management practices are required to be followed by each of
the company in order to assure their corporate social responsibility. In the research paper, a
company, Etisalat has been taken into the concern to conduct the study and identify that how
the changes in the financial practices affect the overall financial level of the business.
Research question:
The main research question of this research paper is:
What is the impact of financial management practices in the public sector?
Literature review:
Author
(year)
Dependent
variable
Independent
Variable
Sample Findings Further
Research
(Juta Tikk
and Arno
Almann,
2011)
Development
of the public
companies
Financial
management
Estonian
public
organizations
Transition of the
financial
accounting system
and practices
result in the
emergency,
integrated and
qualitative new
system in public
Information
technology and
the financial
factors must be
studied further.

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sector at huge
level.
(Mr. Patrick
Mutai
Cheruiyot,
Mr. Julius
Robert
Oketch,
Professor
Gregory S.
Namusonge
, Professor
Maurice
Sakwad,
2017)
Performance
of the
country
government
and public
sector
Public
financial
management
practices
Financial
statement
and
performance
of public
sector
companies in
Kenya
On the basis of
the changes in
practices of
financial
statement, the
citizen gets a
platform to
exercise their
rights and evaluate
the
implementation of
the project.
Other factors of
financial
practices must
also be
considered.
( Monir Mir
and Wahyu
Sutiyono,
2013)
Performance
of the public
sector and
financial
performance
of
Indonesian
companies
Public
financial
management
practices
Financial
statement
and
performance
of public
sector
companies in
Indonesia
Mainly the
changes in the
financial practices
are done by the
companies and
government to
improve the
financial
performance and
improve the
transparency level
in the business.
The study must
be done on more
companies in
order to get
accurate data.
(Albert
Lusha,
Public sector Financial
management
Government The changes in the
budgeting system
Awareness must
be improved

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Xhelal
Mziu and
Fran
Brahimi,
2015)
performance practices institutions and other financial
practices of the
business directly
affect the internal
and external
position of the
business.
about the
financial
practices as well
as the
independences
level of the
auditors must be
improved.
( Frank
Verbeeten,
2008)
Performance
of the public
sector and
financial
performance
Public
financial
management
practices
Financial
performance
of public
sector
companies
Mainly the
changes in the
financial practices
are done by the
companies and
government to
improve the
financial
performance and
improve the
transparency level
in the business.
The study must
be done with
different
methods to get
better outcome.
According to (Tikk & Almann, 2011), It has been found that the changes in the
financial management practices have affected the development and the performance of the
public companies at the public sector. It has also been estimated that the strategic financial
practices are the new method which is used in the business to measure and manage the
performance of the companies. All the internal and external financial practices could
influence the public sector performance level. The integration of all the financial factors and
practices must be done separately in order to identify the influential level of the financial
factors. Information technology factor must also be considered in the report to reach over a
better conclusion.

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Cheruiyot, Oketchb, Namusonge & Sakwa, (2017), further explains that the financial
and non financial performance of Kenya companies is directly influenced with the changes in
the financial statement and the financial level of the business. Effective budgeting,
management of the public resources, strengthen the public resources, controlling on the
financial resources etc are the few factors on the basis of which optimal utilization of the
factor and the efficiency level of public sector could be ensured. On the basis of the changes
in practices of financial statement, the citizen gets a platform to exercise their rights and
evaluate the implementation of the project.
Further research of this article could be the influential level of the financial
management practices over the financial performance of the public companies in the Kenya
market. The various new acts have been introduced by the Kenya government in order to
manage the accountability and control over the financial changes in the public sector.
Mir & Sutiyono, (2013) explains that the study explains that the financial practices
have been changed in last few years at the Indonesian market which have affected the
financial performance of the business such as at initial level, the cash basis used to be
followed by the businesses to record the financial statement but along with the time, it has
been replaced with the accrual accounting method. Because of that the financial performance
of the companies has been changed at great level. Mainly the changes in the financial
practices are done by the companies and government to improve the financial performance
and improve the transparency level in the business. It concludes that the reforms in the
financial management practices at Indonesia market have synchronised the accounting
infrastructure and accounting performance of the public sector companies.
The further research must be done on the professional accounts and the financial
managers of the business who could manage and control over the changes in the financial
performance of the business. The monitoring activities method must also be evaluated and
applied on the financial performance of the companies to identify the factors which have
affected the performance of the business.
The different articles and studies explain that the financial practices and the changes
in the financial method are the independent variable which affects the performance and the
position of the public sector. It lays a crucial role in the performance of public sector and thus
the companies are required to make the changes in the policies and rules accordingly. High
quality financial information in the public sector allows a complete and accurate assessment

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and impact on the policy decision. The financial management practices and the policies make
it easier for the stakeholders and government to plan and prepare the budgeting, monitoring
accountability in the business.
Data collection and methodology:
The research design is crucial in order to choose a suitable method for the research
topic. It helps the researcher to identify the better method and reach over a better conclusion.
There are various tools, strategies, methods, techniques etc to improve the feasibility level
and get a better result from the study. In addition, there are few tactics and tools which are
mainly used by the researchers to reach over a conclusion about the research philosophy,
research approach, research methodology, and data collection methods, sampling, limitation
and ethics. These few research tools make it quite easier for the researcher to identify the
measure all the related factors and reach over a conclusion efficiently.
The data collection methods and strategies explain about the usage of the information
and some reliable proofs which are helpful for the researcher to reach over a conclusion about
the performance of the business. Mainly, there are two types of data collection methods
which are primary data collection method and secondary data collection method. in the
primary data collection method, the researcher evaluate the market place and gather the
information from the respondents or the market directly in order to reach over a conclusion
whereas, in the secondary data method, the researcher evaluate the already collected data and
the information to reach over a conclusion about the research problem.
In the research paper, the secondary data would be taken into the concern to measure
that how the changes in the financial practices affect the financial performance of a company
and the public sector performance. In order to identify and evaluate the topic and get over an
outcome, Etisalat Company has been taken into the concern. A literature review study has
also been done to identify the outcome.
Sampling tools are used in the research to identify the suitable sample and sample size
from the available information and the marketplace. In the research topic, there are mainly
two kind of sampling method which could be used i.e. non probability sampling tool and
probability sampling tool. For this paper, non-probability sampling method has been chosen
to obtain the information and conduct the research. In the paper, the financial statement of the

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company of last 3 years has been taken into the concern along with the changes in the
financial practices of the business. In order to mitigate the bias risk and factors in the
research, the literature review and other research papers have also been taken into the concern
so that a better study could be done.
the research is limited to only one company at the market place which could affect the
quality outcome of the research paper as well as the available resources, time and cost would
also be lower to conduct the study at huge level/
Time scale:
The research time scale is an imperative technique which is used to examine the total
time period while conducting the research. The following table has been demonstrated to
explain the total time period which has been consumed while conducting the research:
Activity
name
Start Day Last Day Duration
(Days)
Proposal of
investigation
21/10/2018 21/11/2018 30
Literature
Review
22/11/2018 22/01/2019 60
pooling of
facts and
figures
23/01/2019 24/03/2019 61
Assessment
of data
25/03/2019 25/04/2019 30
Final
submission
of report
26/04/2019 27/04/2019 30

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It explains that the time was limited for the paper and thus the quality outcome of the
research has been affected. With respect to the above given gantt chart, it has been analyzed
that there are certain activities which is considered while reading the research paper such as
issues reseach devlopment time, aim and objetive of the erseahc paper, reesrahc matter,
infortaion about the research topic and report submission. in the research paper, it has been
found that the primary data collection consumes more time than other data collection
methods and thus the choosing of secondary data collecton method was better idea to conduct
the research and reach over a conclusion about the imapct level of the financial managment
practices on the public scector financial performance.

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References:
Cheruiyota, M. P. M., Oketchb, M. J. R., Namusonge, G. S., & Sakwa, M. (2017). Effect of
public financial management practices on performance in Kericho county government,
Kenya: A critical review. [online]. retrieved from:
http://www.ijern.com/journal/2017/December-2017/18.pdf
Lusha, A., Mziu, X., & Brahimi, F. (2015). Financial management in the public
sector. European Scientific Journal, ESJ, 11(7).
Mir, M., & Sutiyono, W. (2013). Public sector financial management reform: A case study of
local government agencies in Indonesia. Australasian Accounting, Business and
Finance Journal, 7(4), 97-117.
Tikk, J., & Almann, A. (2011). Developments in public sector financial management in
Estonia. Business & economic horizons, 5(2).
Verbeeten, F. H. (2008). Performance management practices in public sector organizations:
Impact on performance. Accounting, Auditing & Accountability Journal, 21(3), 427-
454.