Risk management
Financial risk management
See Also
What Is Personal Finance, and Why Is It Important?What is Personal Finance? | First BankHow to Reach Financial Freedom: 12 Habits to Get You ThereIdentifying the factors affecting strategic decision-making ability to boost the entrepreneurial performance: A hybrid structural equation modeling – artificial neural network approachFinancial risk
Systemic risk
Liquidity risk
Best insight from top research papers
Financial management is influenced by various factors. These include the increased volatility and deregulation of financial markets, developments in information and communications technology, and the complexity of financial products . Additionally, the role of financial management is to create a system of managerial reports that efficiently develop the business . Economic analysis and financial diagnosis help identify areas where the firm wins or loses money . Furthermore, choices oriented toward environmental protection and contextual factors can influence the financial sustainability of waste management companies . Managers' preferences and risk aversion also play a role in firms' financing decisions, with managers signaling high-quality projects with debt if they have more information about asset quality than investors . Finally, the stability of the financial system is influenced by both external factors and factors peculiar to the system itself, with some factors having a positive effect on safety while others can cause fluctuations .
Related Questions
What are the things that influences cash flow management?4 answersEffective cash flow management in businesses is influenced by various factors. Factors influencing cash flow management include payment arrangements, time value of money, construction period, payables and receivables, construction cost, retention, loan payment, tax, financial strategies, finance functions, and cash management ratios. These factors play a crucial role in controlling costs, enhancing value, managing cash accounts, and improving operational efficiency. Understanding the impact of these elements on cash flow is essential for project success and financial performance. By identifying and addressing these influences, businesses can optimize their cash flow management strategies and ensure sustainable operations.What factors affecting financial behavior?5 answersFinancial behavior is influenced by several factors. One important factor is financial literacy, which refers to the knowledge and understanding of financial concepts and practices. Studies have shown that financial literacy has a significant positive impact on financial behavior. Another factor is self-efficacy, which is a person's belief in their ability to successfully manage their finances. Research has found that self-efficacy is positively associated with financial behavior. Religiosity, or the degree of religious devotion, has also been found to influence financial behavior, with higher levels of religiosity being associated with more responsible financial behavior. Additionally, parental influence, financial knowledge, financial attitude, and income have been identified as factors that affect financial behavior. Overall, these factors play a crucial role in shaping individuals' financial behavior.What factors have been shown to strongly influence financial behaviour?5 answersFinancial behavior is influenced by various factors. Research has shown that financial knowledge and financial attitude have a positive and significant influence on financial management behavior. Additionally, financial expertise and financial attitude also positively affect financial management behavior when mediated by a locus of control. Self-control and self-esteem have been found to affect financial behavior, with financial anxiety mediating the relationship between these factors and financial behavior. Furthermore, individuals' financial situations and attitudes towards consumption play a role in their financial behavior, with subjective financial situations and strong attitudes towards saving being related to specific behaviors such as cutting expenses and borrowing. Finally, wealth has been identified as the most important economic indicator of financial well-being, with individuals with high financial well-being being more likely to make planned purchases and less likely to make unplanned purchases.What are the determinants of Financial Management Practices?5 answersThe determinants of financial management practices can vary depending on the context. In the case of state-owned enterprises (SOEs) in Nigeria, factors such as income, family size, and financial literacy were found to be important determinants of financial management behavior. For hotels in Kenya, a theoretical framework proposed that revenue management practices and their determinants, such as contingency theory, can impact financial performance. In Egyptian firms, firm competitiveness was identified as a determinant of management accounting practices (MAPs) adoption, while firm size and strategy had a negative relationship with MAPs adoption. For farm businesses in England, business planning, benchmarking, business size, and knowledge acquisition were found to have a positive effect on financial performance. In Ghanaian manufacturing firms, factors such as firm size, market rivalry, level of qualification of accounting staff, and advanced production technology were identified as determinants of MAPs adoption.What factors influence students' financial management decisions?5 answersFinancial management decisions of students are influenced by various factors. These factors include financial literacy, money ethics, money attitude, time preference, financial experience, financial specialization agents, financial behavior, avoidance, reward for efforts, financial socialization agents, power, personal financial literacy, achievement, financial attitude, financial investment decisions, regret aversion bias, herding, self-control, and financial habits. Financial knowledge and financial behavior were found to be statistically significant factors influencing students' spending management. Financial literacy, financial attitude, regret aversion bias, and herding were found to significantly affect financial investment decisions of undergraduate students. Self-control was found to positively affect students' behavior in organizing their money. The financial habits of college students themselves were identified as the main factors influencing their financial behavior. These findings have implications for financial and educational institutions, policymakers, and universities in designing academic courses and providing financial education to students.What are the factors that influence financial literacy?5 answersFactors that influence financial literacy include demographic factors such as gender, age, and education level. Other factors include economic factors such as owning a business, receiving financial literacy training, and belonging to a village savings and loan association. Financial behavior factors such as decision-making, accountability, and maintaining financial records also play a role in financial literacy. Additionally, socioeconomic factors like consumption spending can impact the relationship between financial awareness and skills. It is important to note that financial literacy levels can vary among different demographic and socioeconomic groups, highlighting the need for targeted interventions and policies to improve financial literacy.
