Browsing by Author "Mukhtar, Mohamed Muse"

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    Working Capital Management, Service Quality and the Financial Performance of Commercial Banks in Somalia.
    (2023) Mukhtar, Mohamed Muse
    The study examined the relationships between working capital management, service quality and the financial performance of commercial banks in Somalia. The study was based on the following research objectives: to examine the relationship between working capital management and the financial performance of commercial banks in Somalia, to assess the relationship between service quality and the financial performance of commercial banks in Somalia and to determine the predictive power of working capital management and service quality on financial performance of commercial banks in Somalia. The study presupposed a cross-sectional research design and a quantitative research methodology. In this study, the researcher handed out 108 questionnaires, of which 96 were returned, yielding a response rate of 88.9%. Regression and correlation techniques were used to analyse quantitative data. The study revealed that there is a significant positive relationship between working capital management and financial performance, significant positive relationship between service quality and financial performance and positive relationship between working capital management and service quality of commercial banks in Somalia. Working capital management emerged to be stronger predictor of financial performance in commercial banks as compared with service quality. Study findings showed that effective cash management practices are essential with in Somali commercial banks. Statements related to proper documentation of cash payments, regular bank account reconciliation, and maintaining adequate cash reserves are positively associated with Cash Management. As well as, effective management of accounts receivable is another critical aspect of working capital management and the findings suggest that proper management of accounts payable is associated with efficient supplier management.