Journal
Metropolitan Journal of Academic Multidisciplinary Research
MJAMR
Risk Management and Financial Performance of Secondhand Car Trading Companies in Kampala District, Uganda
Moses Asaba
| Journal | Metropolitan Journal of Academic Multidisciplinary Research (MJAMR) |
| Volume / Issue | Vol. 2, No. 11 |
| Published | 30 November 2023 |
| ISSN | 3006-4384 |
Abstract
The study examined the relationship between risk management and financial performance of secondhand car trading companies in Kampala. The study applied a cross-sectional research design and a quantitative research approach. The study selected a sample of 242 secondhand car trading companies from 628 by simple random sampling. A structured questionnaire was used to obtain data from either an accountant or business owner. Validity of the instrument was by expert judgment while reliability, Cronbach alpha coefficient. Data analysis was carried out using SPSS (v20) to extract frequency tables, descriptive and inferential statistics for presentation and interpretation. The study found a positive relationship between risk management and financial performance; and positive relationship between working capital management and risk management. Regressed results obtained that jointly working capital management and risk management are significant predictors of financial performance. Risk management was found as the better predictor. The study further obtained a significant partial mediation of risk management in the relationship between working capital management and financial performance. The study concluded that risk management and working capital management are among the key factors that affect financial performance among secondhand car trading companies. The study also observed secondhand car trading companies would financially perform much better if concentration is directed towards risk management. Accordingly, the study recommends; risk assessment, risk mitigation, risk monitoring and control.
Keywords
Risk Management
Financial Performance
Risk Assessment
Secondhand Car
Risk Mitigation
Cite This Article
Moses Asaba (2023). Risk Management and Financial Performance of Secondhand Car Trading Companies in Kampala District, Uganda. Metropolitan Journal of Academic Multidisciplinary Research, 2(11). https://journals.miu.ac.ug/pages/article.php?article_id=1501
More in This Issue
View full issue →
6
Bee Keeping on Household Income. A Case Study of Masira Sub County Bulambuli District
bee keeping
agriculture and household income
7
Coaching Program and Employee Productivity: A Case of Uganda Broadcast Corporation (UBC), Kampala, Uganda
Communication
Broadcasting
Coaching
Corporation
8
Contributions of Naads Towards the Improvement of Farmers’ Livelihoods Adjumani District: A Case Study of Adropi Sub County
NAADS
Agriculture and farmers’ livelihoods
9
Corruption on Social Service Delivery in Sironko District, a Case Study of Buwalasi.
corruption
community and social service delivery
10
Corruption Practices and Implementation of Government Projects in Local Governments in Uganda, a Case Study of Buyende Sub County, Buyende District
corruption practices
implementation
government
projects and local governments