Cashflow Management Practices and the Financial Performance of Five-Star Hotels in Nairobi County, Kenya

Q3 Economics, Econometrics and Finance

Afro-Asian Journal of Finance and Accounting Pub Date : 2023-11-07 DOI:10.53819/81018102t2257

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Abstract

Financial performance of entities in the hospitality industry continue to elicit widespread scholarly interest in the modern competitive business landscape. Effective cashflow management practices remain the mainstay of financial performance in most organizations. However, scholarly research on cashflow management practices enable performance improvement in Kenya’s hospitality industry particularly five-star hotels in Nairobi County is largely limited. The current study examined cashflow management practices’ impact on the financial performance of five-star hotels in Nairobi County, Kenya. The theory that underpinned the study is the Liquidity Preference Theory. A descriptive research design was used and it involved using a survey distributed to all five-star hotels in Kenya. Financial and general managers and their assistants from each five-star hotel provided insights through a closed-ended questionnaire that enabled the researcher to collect and analyze numeric data. Data collected was coded and entered into the package referred to as the Statistical Package for Social Sciences (SPSS) used to analyze quantitative data. The analyzed data revealed that there is a significant relationship between cashflow management practices (p=0.039; p<0.05) and the financial performance of five-star hotels in Nairobi City County, Kenya. The study recommended that five-star hotels in Nairobi County should adopt effective strategies for cashflow management to actualize improved financial performance. Keywords: cashflow management practices, financial performance, Nairobi County, five-star hotels.

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肯尼亚内罗毕县五星级酒店现金流管理实践与财务绩效

在现代竞争激烈的商业环境中，酒店业实体的财务绩效继续引起广泛的学术兴趣。在大多数组织中，有效的现金流管理实践仍然是财务绩效的支柱。然而，关于现金流管理实践的学术研究使肯尼亚酒店业特别是内罗毕县的五星级酒店的绩效改善在很大程度上是有限的。目前的研究考察了现金流管理实践对肯尼亚内罗毕县五星级酒店财务绩效的影响。支撑这项研究的理论是流动性偏好理论。我们采用了描述性研究设计，并对肯尼亚所有五星级酒店进行了调查。每家五星级酒店的财务经理和总经理及其助理通过封闭式问卷提供见解，使研究人员能够收集和分析数字数据。收集到的数据被编码并输入到用于分析定量数据的社会科学统计包(SPSS)中。分析数据显示，现金流管理实践与企业绩效之间存在显著关系(p=0.039;p<0.05)和肯尼亚内罗毕市县五星级酒店的财务绩效之间的关系。本研究建议内罗毕县五星级酒店应采取有效的现金流管理策略，以实现财务绩效的改善。关键词:现金流管理实践，财务绩效，内罗毕县，五星级酒店。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Afro-Asian Journal of Finance and Accounting Economics, Econometrics and Finance-Finance

CiteScore

0.70

自引率

0.00%

发文量

期刊介绍： Finance and accounting are seen as essential components for the successful implementation of market-based development policies supporting economic liberalisation in the rapidly emerging economies in Africa, the Middle-East and Asia. AAJFA aims to foster greater discussion and research of the development of the finance and accounting disciplines in these regions. A major feature of the journal will be to emphasise the implications of this development and the effects on businesses, academics and professionals. Topics covered include: -Asset pricing, corporate finance, banking; market microstructure -Behavioural and experimental finance; law and finance -Emerging economies: finance, audit committees, corporate governance -Islamic finance, accounting and auditing -Equity analysis and valuation, venture capital and IPOs -National GAAP and IASs compliance, harmonisation and strategies -Financial measurement/disclosure, and the quality of information reported -Accountability and social/ethical/environmental measurement/reporting -Cultural, political, institutional impact on financial measurement/disclosure -Accounting practices for intellectual capital and other intangible assets -Provision of non-audit services and impairment to auditor independence -Audit quality and auditor skills; internal control/auditing -Management accounting, control and /use of key performance indicators -Accounting education and professional development, accounting history -Public sector and not-for-profit accounting