Analyzing the determinants of financial management behavior of administrators in Nigerian state-owned enterprises

  • 368 Views
  • 189 Downloads

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License

This study assessed the factors that determine the financial management behavior of administrators in state-owned enterprises (SOEs) in Nigeria. The rising cases of financial mismanagement, which was associated with the financial management behavior of top administrators in these SOEs, prompted this study. It is believed that identifying the factors that determine the financial management behavior of these administrators would help to find solutions to the problem. Based on the multistage sampling technique, 385 top administrators from the SOEs at the federal level in Nigeria participated in the survey. Quantitative analysis was used to analyze the data and the results show that income, family size, and financial literacy are the most important factors affecting the financial management behavior of the administrators. It is recommended that there should be an improvement in income and other working conditions of the administrators in the SOEs since income has been confirmed to be an important shift factor of financial management behavior. In the same vein, given the role of family size, it is recommended that efforts on population reduction should be intensified. Finally, financial literacy should be given priority in checkmating irresponsible financial management behavior.

view full abstract hide full abstract
    • Figure 1. Residual variance graph of FMB determinants
    • Figure 2. Test for heteroscedasticity of the estimated model
    • Table 1. A priori expectations
    • Table 2. Biodata distribution
    • Table 3. Breusch-Pagan/Cook-Weisberg test for heteroscedasticity
    • Table 4. WLS regression result
    • Conceptualization
      Omolayo Sunday Kayode
    • Data curation
      Omolayo Sunday Kayode
    • Formal Analysis
      Omolayo Sunday Kayode
    • Funding acquisition
      Omolayo Sunday Kayode
    • Investigation
      Omolayo Sunday Kayode
    • Resources
      Omolayo Sunday Kayode
    • Writing – original draft
      Omolayo Sunday Kayode
    • Project administration
      Mabutho Sibanda
    • Supervision
      Mabutho Sibanda, Odunayo Magret Olarewaju
    • Validation
      Mabutho Sibanda, Odunayo Magret Olarewaju
    • Visualization
      Mabutho Sibanda, Odunayo Magret Olarewaju
    • Writing – review & editing
      Mabutho Sibanda, Odunayo Magret Olarewaju