Societal Relevance of Financial Management: A Case Study in Developing and Developed Countries

Abstract

Businesses fail due to lack of proper financial management practices. A lot of countries are in great recession because of mismanagement of public finance. Most developing nations have refused to implement good financial management practices in order to ensure transparency, and economic development in the country. However, the purpose of this research is to examine the relevance of financial management practices in developed and developing countries. In addition to the study, its aim is to compare how financial management practice is done in developing and developed nations. It entails the financial management structure in developed (USA and Canada) compared to that of developing countries (Ghana and Nigeria). The authors used secondary sources by reviewing archival literature of past studies such as journal and conferences proceedings, magazines, books, internet sources and so on. Discussion on how financial management will benefits household individuals, businesses and governments in a country are given in this research paper. The challenges faced in countries for lack of proper financial management practice are also included in this research paper. In this study, the authors found that finance has a great impact on the society, whether it being personal, business or public finances, they all play a key role in promoting growth and development in a country. The authors also found out that financial management help countries to prepare a detailed financial budget on how to track the expense and income of a country. Further empirical studies could be carried out by different authors by using qualitative and quantitative research method in order to get accurate data on the relevance of financial management practice in developing and developed countries.