Financial Management Practices of the Shipping Companies in Metro Manila

Abstract

The main objective of the study is to determine the effectiveness of the Financial Management Practices of the Shipping Companies in Metro Manila, Philippines. The descriptive survey method was used and a total of 190 respondents were engaged in the study. The responses were categorized according to their profile such as sex, age, civil status and highest educational attainment. It was revealed that the respondents gave the highest weighted mean on the investment and borrowing practice of “the company prefers the highest yield of return”. In terms of financial reporting practices, “the financial statements are published monthly, quarterly, and/or yearly” got the lowest weighted mean score. In terms of financial control practices, the respondents gave the highest weighted mean for “the attitude and involvement of owner/ manager to financial controls are efficient” while the “regular audit are conducted” yielded the lowest weighted mean score. Based on the findings, the researcher suggests that the shipping companies should continue implementing the efficient financial management practices in order to deliver fast and reliable decision making of the owner and other user of the accounting information and improve the function and effectiveness of financial management practices of the shipping companies.