The effect of firm characteristics on the relationship between accounting risk management and performance of State Enterprises in Uganda
View/ Open
Date
2022-08-16Author
Mafumbo, P. W.
Mwangi, C. I
Okiro, K.
Wainaina, G
Type
ArticleLanguage
en_USMetadata
Show full item recordAbstract
The broad objective of this research was to determine the effect ofaccounting risk management, the mediating influence of the internal controls, and the effect of firm characteristics on the relationship of firm performance of state enterprises in Uganda.The specificobjectives were; to examine the relationship between accounting risk management and performance of state enterprises in Uganda; to determine the moderating effect of firm characteristics on the relationship between accounting risk management and performances of state enterprises in Uganda and toassess the joint effect of accounting risk management, firm characteristics and internal controls on the performance of state enterprises in Uganda.This study was anchored on the positivist paradigm since it is rational and objective and is generally characterized by the formulation and testing of the hypotheses. The population comprised 34 state enterprises from 11 sectors, however, 32 responded, reflecting a response rate of 94 percent. Secondary data was collected for a five-year period from 2015 to 2019.Both primary used semi-structured questionnaires and secondary data was derived from annual final accounts of state enterprises and annual indices report from Transparent International Uganda for Corruption Perception Indices. The unit of analysis wasstate enterprises and the unit of inquiry were, Chief Executive Officers, Finance Managers, Chief internal auditors, Human Resource Managers, and Procurement Managers. The methodology used a descriptiveand cross-sectional survey design to get informationfrom state enterprises.Cronbach coefficient assessed the internal consistency and items of α≥ 0.7 were considered. Equally, a validity index with ≥ 0.7 was also considered. The diagnostic test; tested the relationship between the variables; normality was tested using P-P Plots, histogram, and Shapiro-Wilk test; multi-collinearity, was tested using Variance Inflation Factor (VIF) of < 10, tolerance statistics between 0-10 and Conditional Index Number <30. Homoscedasticity was tested by the plot of residuals and Levene the test-the equality of variances tested the null hypothesis. The findingsshowed accounting risk management had a significantinfluenceon the performance of state enterprises; there was a significant intervening effect of internal controls on this relationship; therewas no moderating effect of firms’ characteristics on therelationship; and there was a joint effect of accounting risk management, internal controls and firms ‘characteristics on performance of state enterprises. Through this study, it is recommended that managers of state enterprises should consider aggressive accounting risk management practices to maximize the useprofitability, liquidity, managerial efficiency, budgetary controls and reduction fraudsso as to improvetheir performance. Therefore, it is prudent that accounting risk management practices and firm characters be embraced to increase profitability of state enterprises.
URI
http://uonjournals.uonbi.ac.ke/ojs/index.php/adfj/article/view/1075http://erepository.uonbi.ac.ke/handle/11295/161373
Citation
Mafumbo, P. W., Mwangi, C. I., Okiro, K., & Wainaina, G. (2022). The effect of Firm Characteristics on the Relationship between Accounting Risk Management and Performance of State Enterprises in Uganda. African Development Finance Journal, 3(2), 78-104.Publisher
African Development Finance Journal
Collections
- Faculty of Health Sciences (FHS) [10387]