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Financial Management Practices and Small and Medium-scale Enterprises' Performance in Sri Lanka

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dc.contributor.author Sandaruwandi, S.V.C.
dc.contributor.author Panditharathna, K.M,
dc.contributor.author Rathnayake, S.S.
dc.date.accessioned 2024-08-15T03:42:33Z
dc.date.available 2024-08-15T03:42:33Z
dc.date.issued 2024
dc.identifier.citation Sandaruwandi, S.V.C., Panditharathna, K.M., Rathnayake, S.S. (2023). Financial Management Practices and Small and Medium-scale Enterprises' Performance in Sri Lanka, International Journal of Accountancy (IJA) – Volume 3 Issue 2, Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya. en_US
dc.identifier.uri http://repository.kln.ac.lk/handle/123456789/27968
dc.description.abstract Small and Medium-scale Enterprises (SMEs) add value to an economy by creating employment, contributing to Gross Domestic Production (GDP), making innovations, and minimising poverty. They are partnering with the development of the country. Most small and medium-scale enterprises face issues like lack of knowledge, outdated skills, fear of taxation, adoption of accounting standards, and accounting information records. Therefore, this study aims to identify the relationship between financial management practices and SMEs' performance in the southern province of Sri Lanka. This study measures financial management practices using financial reporting analysis, working capital management, fixed asset management, and accounting information systems. SME performance was measured by the profitability of SMEs using return on assets. Considering data constraints, time constraints, and the COVID-19 situation, 107 Small and Medium Enterprises operating in the manufacturing and service sectors were selected as samples. A questionnaire was chosen as the primary data-gathering method. The sample was chosen using a convenience sampling procedure, and the data were analysed using the Statistical Package for Social Scientists (SPSS) software. Multiple regression analysis was done to examine the hypothetical association. This study found that financial management techniques such as fixed asset management, working capital management, accounting information systems, and financial performance of SMEs have a significant association with performance. The findings support aiding investors, workers, and policymakers in making effective decisions. en_US
dc.publisher Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka en_US
dc.subject Financial management practices, financial performance, return on asset (ROA), small and medium-sized enterprises (SMEs), working capital management en_US
dc.title Financial Management Practices and Small and Medium-scale Enterprises' Performance in Sri Lanka en_US


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