Who needs budgets pdf

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HBR Onpoint Article. By Jeremy Hope , Robin Fraser ,. View Details. HBR Digital Article. By Debbie Madden ,. Industry and Background Note. By David W. Young , Robert N. Anthony ,. Press Book. HBR Article. David Sherman , S. The study found that planning as a budgeting process has a positive influence on the financial performance of listed manufacturing firms in Ghana but is not statistically significant. This could be that there is weakness in the planning process of the listed manufacturing firms.

However, from Table 4 below, it is evidence that planning as a budgeting process have a strong positive relationship with financial performance. It is therefore alleged that planning have an influence on the financial performance of listed manufacturing firms. Also, the study portrayed that monitoring and control as a budget process has a significant and positive influence on the financial performance of listed manufacturing firms in Ghana. With its coefficient of 0. This implies that monitoring and control of budgeting process is a significant determinant of financial performance.

The study further revealed that with a unit increase in coordination will cause the financial performance of manufacturing firms to improve by 0. This result indicates that there is sufficient evident to suggest that the coefficient of coordination is significant in predicting the financial performance of listed manufacturing firms.

Finally, the study asserted that evaluation as a budget process has a significant and positive influence on the financial performance of listed manufacturing firms in Ghana. This implies that evaluation of budgeting process is a significant determinant of financial performance among listed manufacturing firms. Error t-ratio p-value Const 0. The model fit well the dataset. Considering the p-value 0. This implies that there is enough evidence to reject the null hypothesis that model is not well fit for the dataset; hence suggesting that the model best fit the dataset used in this study.

Table 4. The testing of the relationship between planning, monitoring and control, coordination, and evaluation on the financial performance of the listed manufacturing firms in Ghana was done through the estimation of Pearson correlation coefficients.

Correlation is significant at the 0. Source: Field Survey, 5. Discussions The revealed that budgeting plays the following vital roles; it helps integrate the organization's strategic planning with budgets and processes of cost control, budgeting helps identify financial skills required for better decision making, it enables management to identify key financial indicators for the business and how and when to monitor them, budgeting also economizes management time by using the management by exceptional principle, the budget provides the benchmarks against which to judge success or failure in reaching goals and facilities timely corrective measures.

The study revealed that budgetary controls are viewed as imperative instrument in arranging and control of assets to upgrade execution in numerous associations. The study further exposed that 0. Based on the data obtained, and the findings stipulated, the study also revealed that planning; monitoring and control; coordination and evaluation plays a vital role and further has positive effect on financial performance of manufacturing firms.

This finding also falls in line with a study conducted by Mwangi, on assessing the effects of budgetary planning tools on the financial performance of registered public service vehicle companies in Kenya. The study found out that, vehicle companies that adopted budgetary planning techniques had favorable performance ratios and those that did not practice those techniques had unfavorable performance ratios.

The study also disclosed that, there is strong positive correlation between budgeting and financial performance. This finding is again in line with the following scholars; Qi, who investigated on the impact of budgeting process on performance of small and medium-sized firms in China.

What she discovered, from the OLS regression output is that, there is a significant and positive relationship between formal budgeting process and firm performance. Pimpong, and Laryea, also wrote a paper in the International Journal of Academic Research and Reflections about budgeting and its impact on financial performance of non-bank financial institutions in Ghana.

Firms listed on the stock exchange contribute to the growth of the economy and therefore must be monitored to perform to expectation in order to enable the economy to grow. In this regard this study seeks to focus on the budgeting and its effect on financial performance of manufacturing firms.

Based on the data obtained, and the findings stipulated The study also conclude that planning; monitoring and control; coordination and evaluation plays a vital role and further has positive effect on financial performance of manufacturing firms. The study again concludes that 0. The study again conclude that there is strong positive correlation between budgeting and financial performance.

The paper with respect to its findings suggested the following policy recommendations to the listed manufacturing firms; managers of the listed manufacturing firms should put in place an effecting planning system of budgeting since it is evidence that planning has a great positive impact on financial performance but was not significant which implies that there is weakness in the planning process of budgeting and must be given much attention.

The study also recommends that managers produce comprehensive budgetary plans to enable the employment of the long term plans. This will encourages managers to anticipate problems before they arise and ensures reasoned decision making. This study also acclaims that managers within the firms must have a perfect understanding of the role which they are prerequisite to play in ensuring budgetary compliance.

This will ensure that the most appropriate individuals are made accountable for budget execution. References Addo, E. International Journal, 6 2 , Atkinson, A. A stakeholder approach to strategic performance measurement. Sloan management review, 38 3 , Boquist, H. Academy of Management Journal, Chidi, C. Managing human capital development in small and medium-sized enterprises for sustainable national development in Nigeria. International Journal of Management and Information Systems, 15 2 , Diamond, J.

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Strategic management journal, 31 1 , Horngren, C. Financial and managerial accounting. Pearson Education. Jones, R. Public sector accounting. Kalule, J. Effect of budgetary control on the financial performance of selected government aided secondary schools in Kayunga town council, Uganda Doctoral dissertation. Kipkemboi, S. Leyk, J.