The impact of financial management practices on financial performance: Empirical evidence from a Ghanaian public university

Abstract

This study investigates the impact of specific financial management practices on the financial performance of the University of Mines and Technology (UMaT), Ghana. This done by utilizing a mixed-methods approach. Data were collected from 55 staff in the Finance and Audit departments via questionnaires and semi-structured interviews. A Tobit regression model was employed to analyse the quantitative data, testing the influence of budgeting and budgetary control, financial reporting and transparency, internal controls and audit practices, and cash flow management on financial performance. The findings reveal that financial reporting and transparency (β = 1.23, p = 0.001), and cash flow management (β = 1.05, p = 0.002), have the most significant positive impact on financial performance. Budgeting and budgetary control showed a moderate positive effect, while internal controls had a weaker influence. The study, framed by the Resource-Based View and Contingency theories, concludes that enhancing transparency and cash flow efficiency are the most critical levers for improving financial health in public higher education institutions in developing contexts.