Financial Management Practices in India

Irala, Lokanandha Reddy

doi:10.2139/ssrn.964132

Cited by 5 publications

(4 citation statements)

References 6 publications

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“…Peel and Wilson (1996) studied the working capital management practices of small firms based in the North England dealing with the working capital components. Irala (2006) analysed the financial management practices in the Indian corporate sector and opined that it was rapidly adopting new * Author for correspondence methodologies in financial management. Sulaiman and Ahamed (2006) conducted an overall working capital analysis and measured the efficiency in management of working capital in Kerala Agro Industries Corporation Ltd. Jain et al (2007) assessed the working capital management practices of public sector enterprises in India.…”

Section: Introductionmentioning

confidence: 99%

Financial Management Practices and Profitability of Modern Rice Milling Firms in Kangayam Cluster, Tamil Nadu

Selvanayaki¹,

Sivakumar²,

Rohini³

et al. 2016

Agri. Econ. Rese. Revi.

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The study analyses the financial management practices adopted by modern rice milling firms in the Kangayam cluster of Tamil Nadu. For study, 40 firms were selected using simple random sampling method and data were collected through personal interviews with the owner / managers of the firm using a pre-tested interview schedule. The data pertaining to the financial performance were obtained from the records maintained by the firms for three financial years, from 2011-12 to 2013-14. The factor analysis and multiple regression analysis were carried out. Significant differences among the fully and partially modernized rice milling firms have been observed in the preparation of cash budget, setting-up credit policy, preparation of inventory budget and review of inventory turnover, capital budgeting in investment analysis and accounting practices. The measures of financial management practices explained 58.4 per cent (R-squared value) of the variation in the profitability measure return on equity.

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Section: Introductionmentioning

confidence: 99%

Financial Management Practices and Profitability of Modern Rice Milling Firms in Kangayam Cluster, Tamil Nadu

Selvanayaki¹,

Sivakumar²,

Rohini³

et al. 2016

Agri. Econ. Rese. Revi.

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“…There was no significant association between corporate sustainability performance (CSP) and financial performance [29,30]. [31] studied the financial management practices in Indian corporate sector. From the results it was important to note that corporate sector in India was rapidly adopting the new methodologies.…”

Section: Introductionmentioning

confidence: 99%

Financial Management Practices and Their Impact on Organizational Performance

2010

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This study measures the relationship between organizational performance and financial management practices like capital structure decision, dividend policy, investment appraisal techniques, working capital management and financial performance assessment in Pakistani corporate sector. Sample of the study consisted of forty companies operating in Pakistan, related to different sectors and listed at Karachi Stock Exchange. The finance executives and financial analysts of the companies responded to questionnaire that identified through company profiles and references. The questionnaires were self administered to collect the data from respondents. The results show a positive and significant relationship between financial management practices and organizational performance in Pakistani corporate sector.

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“…The majority of respondents measured the cost of equity as the return required by investors. The most widely accepted and popular discount rate was WACC (Anand, 2002; Babu and Sharma, 1995; Bierman, 1993; Cherukuri 1996; Irala, 2006; Jain and Kumar, 1998; Ryan and Ryan, 2002). Graham and Harvey (2001) found that, while small firms calculate cost of equity by what investors tell they require, large companies are more likely to use capital asset pricing model (CAPM) for the same.…”

Section: Review Of Literaturementioning

confidence: 99%

“…Graham and Harvey (2001) found that, while small firms calculate cost of equity by what investors tell they require, large companies are more likely to use capital asset pricing model (CAPM) for the same. Further CAPM was found to be the most popular to calculate cost of equity capital (Anand 2002; Gitman and Vandenberg, 2000; Irala, 2006; Ryan and Ryan, 2002).…”

Section: Review Of Literaturementioning

confidence: 99%

An Empirical Insight into Different Stages of Capital Budgeting

Batra¹,

Verma²

2014

Global Business Review

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In today’s highly turbulent and volatile business environment where companies are exposed to a multitude of risks, only globally competitive and professionally managed companies can thrive and grow. In such a competitive environment, the capital budgeting decisions made by a company are critical to a firm’s long-term survival. Is the Indian corporate sector using theoretically sound and sophisticated capital budgeting techniques for decision making purposes? Are the Indian firms adopting risk analysis techniques for handling various risks in investments? These issues have been the focus of research studies over the past so many years. The most prevalent emphasis of previous capital budgeting surveys continues to be mainly on financial analysis and project selection stage of capital budgeting. The article reviews the past capital budgeting survey literature till the year 2012 and brings to light some of the neglected areas of capital budgeting. It is noticed that project definition and cash flow estimation (identification and development) (Stage I), project implementation (Stage III) and project review (post audit and control) (Stage IV) are the specifically neglected areas of the capital budgeting process. Further Indian studies encompassing the overall stages of capital budgeting process still remain relatively unexplored. The main aim of the present study is to not only provide an insight on the past literature, but also explore the CFOs opinions and perceptions about the relative difficulty and significance of different stages of capital budgeting in India, particularly in an era of full-fledged globalization and cutthroat competition, where companies are being exposed to various degrees of risk. The study is based on a primary survey of CFOs of 77 Indian companies listed on Bombay Stock Exchange. The study further endeavours to evaluate the impact of different company related variables of size of capital budget, nature of industry, company age, CEO education and CEO age on the level of difficulty of different stages of capital budgeting.

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Financial Management Practices in India

Cited by 5 publications

References 6 publications

Financial Management Practices and Profitability of Modern Rice Milling Firms in Kangayam Cluster, Tamil Nadu

Financial Management Practices and Profitability of Modern Rice Milling Firms in Kangayam Cluster, Tamil Nadu

Financial Management Practices and Their Impact on Organizational Performance

An Empirical Insight into Different Stages of Capital Budgeting

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