Abstract:
The main aim of this study was to examine the challenges of financial management
practices of pharmaceutical companies in Ghana using three selected pharmaceutical
companies in Kumasi Metropolis. This was as a result of the fact that pharmaceutical
firms mainly focus on bank loans and equity as their main source of funds in financing
their operations giving less attention to efficient working capital as a feasible option. A
set of questionnaires was administered on 25 persons from large and small
pharmaceutical firms in Kumasi. Survey monkey and Microsoft excel were used to
collect and process the data. The research revealed that pharmaceutical firms face low
profitability, liquidity challenges, inability to unlock capital to finance growth and an
increased funds tied up in working capital. It is recommended that pharmaceutical firms
need to re-analyse the factors that determine their working capital in order to come up
with best practices and to lessen the challenges in the financial management. Again the
pharmaceutical firms need to change their working capital management policy from
informal to formal to improve their management practices.
Description:
A Dissertation in the Department of Accounting Education, Faculty of Business
Education, submitted to the School of Graduate Studies, University of Education,
Winneba in partial fulfilment of the requirements for award of the Master of
Business Administration (Finance) degree
AUGUST 2017
