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THE RELATIONSHIP BETWEEN COST MANAGEMENT AND FINANCIAL PERFORMANCE IN TELECOM COMPANIES; TURKEY, EGYPT & SAUDI ARABIA

Yıl 2021, Cilt: 14 Sayı: 1, 115 - 116, 31.12.2021
https://doi.org/10.17261/Pressacademia.2021.1500

Öz

Purpose- The purpose of this study is to asses the relationship between cost management and financial performance of three
telecommunication companies in Turkey, Egypt and Saudi Arabia on publickly trading companies on stock exchanges. Telecommunication
companies are somehow struggling in attaining financial performance though issues of cost management remain underdeveloped as the cost
analysis, budgeting, cost monitoring, and cost evaluations are poorly prevailing. This study distinguishes itself from the majority of the
literature that it focuses on analyzing the cost trend, financial performance and the effect of cost management on financial performance of
the companies.
Methodology- In the study, the analysis of data is determined using ratio analysis to establish the trend of cost management and financial
performance that will be assessed in the financial statement of income and balance sheets. The financial performance is determined by using
gross margin, return on assets, operating and net profit margin. While to attain the effect between cost management and financial
performance of the companies, regression analysis was employed, so the operating costs were taken as cost management and the sales
taken as financial performance.
Findings- The analysis reveals that the cost management for Egypt and Turkey telecom companies were very poor based on their results of
current ratio, acid test ratio and net working capital to total assets ratio, while Saudi Arabia telecom company’s cost management was way
better compared to other two companies. Additionally, the financial performance analysis (gross margin, net profit margin, operating profit
margin and return on assets) indicated a promising and positive results for all the companies except Egypt telecom company which
encountered a disappointing finding. According to the results of regression analysis of the companies, the cost management has a significant
contribution to the financial performances of the companies, as cost management has more than 78% effect on all the companies’ financial
performances, while their p-value are in a permissible range.
Conclusion- based upon the Findings it may be concluded that Turkey Telecom Company’s cost management is poorly oriented; there is need
for development of a scale for the effective financial performance of the company and in order to the keep the company’s liabilities under
control, the management should pay off the creditors quickly and reduce the repayment terms on the loans. Moreover, Egypt Telecom
company needs to venture into the financial performance of the company by developing up avenues necessary for the development of the
financial performance such as improving the business attractiveness and expanding its customers base. Lastly, the Saudi Telecom Company's
cost management and financial performance analysis seem to be fairly good as all the results indicated a propitious finding, but the researcher
suggests that the company should be mindful to the cost unit because its solely accountable for supplying the company's cost evaluation
information

Kaynakça

  • Adesina OT, Ikhu – Omoregbe S, Aboaba KO; Accounting information and profit planning: the case of Nigeria listed manufacturing companies. European Journal of accounting auditing and Finance Research, 2015; 3(4):86- 97.
  • Akeem, L. B. (2017). Effect of Cost Control and Cost Reduction Techniques in Organizational Performance. International Business and Management, 14 (3), 19-26.
  • Akenbor CO and Okoye EI (2017). The Adoption of Strategic Management Accounting in Nigerian Manufacturing Firms an International Journal of Arts and Humanities Bahir Dar, Ethiopia, 2012; 1 (3):270-287
  • Barth T. (2013). Financial performance and outreach: a global analysis of leading microbanks”, Economic Journal, 117(517): F107-F133
  • Block, B. S., and Hirt, G. A., (2012), Foundation of Financial Management, 6th Ed, -USA. Pg 144-179
  • Botín, J.A., &Verara, M.A. 2015. “A Cost Management Model for Economic Sustainability and Continuous Improvement of Mining Operations.” Resources Policy 46: 212-218
  • Bryan, D.B. 2017. “Organized Labor, Audit Quality, and Internal Control.” Advances in Accounting 36: 11-26
  • Chong, H.C., Ramayah, T and Subramaniam, C. (2018). “The Relationship Between Critical Success Factors, Internal control and Safety Performance in the Malaysian Manufacturing Sector.” Safety Science 104: 179-188
  • Dauda YA, Akingbade WA and Akinlabi HB (2016). Strategic Management Practice and Corporate Performance of Selected Small Business Enterprises in Lagos Metropolis. International Journal of Business and Management, 2010; 5(11):97 – 105
  • Gichunge EM (2016). The Effect of Formal Strategic management on Organizational Performance: A Study of Selected medium sized Manufacturing Enterprises in Nairobi, Kenya. Ph.D Dissertation.
  • Henri, Jean-François, Boiral, O., & Roy, Marie-Josèe. 2016. “Strategic Cost Management and Performance: The Case of Environment Costs.” The British Accounting Review 48: 269- 282.
  • Hussin, M.R.A., Alias, R.A., & Ismail, K. 2013. “An Action Research Approach for the Development of Cost Management Skills Training Program Among the Owners of Small and Medium Enterprises (SMEs) In Malaysia.” Procedia-Social and Behavioral Sciences 91: 515-521
  • Kelly, K., & Tan, Hun-Tong. 2017. “Mandatory Management Disclosure and Mandatory Independent Audit of Internal control: Evidence of Configure Information Processing by Invertors.” Accounting, Organizations and Society 56: 1-20.
  • Kren, L. (2010). Budgeting participation and managerial performance: The impact of information and Environment volatility, The Accounting Review, 67, 511-526.
  • Lougee, B.A., & Marquardt, C.A. (2014). “Earnings Informativeness and Strategic Disclosure: An Empirical Examination of "Pro Forma" Earnings.” The Accounting Review 79(3): 769-795
  • Muogbo US (2018). The Impact of Strategic Management on Organizational Growth and development: A Study of Selected Manufacturing Firms in Anambra State. IOSR Journal of Business and Management; 7(1):24-32
Yıl 2021, Cilt: 14 Sayı: 1, 115 - 116, 31.12.2021
https://doi.org/10.17261/Pressacademia.2021.1500

Öz

Kaynakça

  • Adesina OT, Ikhu – Omoregbe S, Aboaba KO; Accounting information and profit planning: the case of Nigeria listed manufacturing companies. European Journal of accounting auditing and Finance Research, 2015; 3(4):86- 97.
  • Akeem, L. B. (2017). Effect of Cost Control and Cost Reduction Techniques in Organizational Performance. International Business and Management, 14 (3), 19-26.
  • Akenbor CO and Okoye EI (2017). The Adoption of Strategic Management Accounting in Nigerian Manufacturing Firms an International Journal of Arts and Humanities Bahir Dar, Ethiopia, 2012; 1 (3):270-287
  • Barth T. (2013). Financial performance and outreach: a global analysis of leading microbanks”, Economic Journal, 117(517): F107-F133
  • Block, B. S., and Hirt, G. A., (2012), Foundation of Financial Management, 6th Ed, -USA. Pg 144-179
  • Botín, J.A., &Verara, M.A. 2015. “A Cost Management Model for Economic Sustainability and Continuous Improvement of Mining Operations.” Resources Policy 46: 212-218
  • Bryan, D.B. 2017. “Organized Labor, Audit Quality, and Internal Control.” Advances in Accounting 36: 11-26
  • Chong, H.C., Ramayah, T and Subramaniam, C. (2018). “The Relationship Between Critical Success Factors, Internal control and Safety Performance in the Malaysian Manufacturing Sector.” Safety Science 104: 179-188
  • Dauda YA, Akingbade WA and Akinlabi HB (2016). Strategic Management Practice and Corporate Performance of Selected Small Business Enterprises in Lagos Metropolis. International Journal of Business and Management, 2010; 5(11):97 – 105
  • Gichunge EM (2016). The Effect of Formal Strategic management on Organizational Performance: A Study of Selected medium sized Manufacturing Enterprises in Nairobi, Kenya. Ph.D Dissertation.
  • Henri, Jean-François, Boiral, O., & Roy, Marie-Josèe. 2016. “Strategic Cost Management and Performance: The Case of Environment Costs.” The British Accounting Review 48: 269- 282.
  • Hussin, M.R.A., Alias, R.A., & Ismail, K. 2013. “An Action Research Approach for the Development of Cost Management Skills Training Program Among the Owners of Small and Medium Enterprises (SMEs) In Malaysia.” Procedia-Social and Behavioral Sciences 91: 515-521
  • Kelly, K., & Tan, Hun-Tong. 2017. “Mandatory Management Disclosure and Mandatory Independent Audit of Internal control: Evidence of Configure Information Processing by Invertors.” Accounting, Organizations and Society 56: 1-20.
  • Kren, L. (2010). Budgeting participation and managerial performance: The impact of information and Environment volatility, The Accounting Review, 67, 511-526.
  • Lougee, B.A., & Marquardt, C.A. (2014). “Earnings Informativeness and Strategic Disclosure: An Empirical Examination of "Pro Forma" Earnings.” The Accounting Review 79(3): 769-795
  • Muogbo US (2018). The Impact of Strategic Management on Organizational Growth and development: A Study of Selected Manufacturing Firms in Anambra State. IOSR Journal of Business and Management; 7(1):24-32
Toplam 16 adet kaynakça vardır.

Ayrıntılar

Birincil Dil İngilizce
Konular Finans, İşletme
Bölüm Makaleler
Yazarlar

Samatar Muse 0000-0003-3738-9382

Yayımlanma Tarihi 31 Aralık 2021
Yayımlandığı Sayı Yıl 2021 Cilt: 14 Sayı: 1

Kaynak Göster

APA Muse, S. (2021). THE RELATIONSHIP BETWEEN COST MANAGEMENT AND FINANCIAL PERFORMANCE IN TELECOM COMPANIES; TURKEY, EGYPT & SAUDI ARABIA. PressAcademia Procedia, 14(1), 115-116. https://doi.org/10.17261/Pressacademia.2021.1500
AMA Muse S. THE RELATIONSHIP BETWEEN COST MANAGEMENT AND FINANCIAL PERFORMANCE IN TELECOM COMPANIES; TURKEY, EGYPT & SAUDI ARABIA. PAP. Aralık 2021;14(1):115-116. doi:10.17261/Pressacademia.2021.1500
Chicago Muse, Samatar. “THE RELATIONSHIP BETWEEN COST MANAGEMENT AND FINANCIAL PERFORMANCE IN TELECOM COMPANIES; TURKEY, EGYPT & SAUDI ARABIA”. PressAcademia Procedia 14, sy. 1 (Aralık 2021): 115-16. https://doi.org/10.17261/Pressacademia.2021.1500.
EndNote Muse S (01 Aralık 2021) THE RELATIONSHIP BETWEEN COST MANAGEMENT AND FINANCIAL PERFORMANCE IN TELECOM COMPANIES; TURKEY, EGYPT & SAUDI ARABIA. PressAcademia Procedia 14 1 115–116.
IEEE S. Muse, “THE RELATIONSHIP BETWEEN COST MANAGEMENT AND FINANCIAL PERFORMANCE IN TELECOM COMPANIES; TURKEY, EGYPT & SAUDI ARABIA”, PAP, c. 14, sy. 1, ss. 115–116, 2021, doi: 10.17261/Pressacademia.2021.1500.
ISNAD Muse, Samatar. “THE RELATIONSHIP BETWEEN COST MANAGEMENT AND FINANCIAL PERFORMANCE IN TELECOM COMPANIES; TURKEY, EGYPT & SAUDI ARABIA”. PressAcademia Procedia 14/1 (Aralık 2021), 115-116. https://doi.org/10.17261/Pressacademia.2021.1500.
JAMA Muse S. THE RELATIONSHIP BETWEEN COST MANAGEMENT AND FINANCIAL PERFORMANCE IN TELECOM COMPANIES; TURKEY, EGYPT & SAUDI ARABIA. PAP. 2021;14:115–116.
MLA Muse, Samatar. “THE RELATIONSHIP BETWEEN COST MANAGEMENT AND FINANCIAL PERFORMANCE IN TELECOM COMPANIES; TURKEY, EGYPT & SAUDI ARABIA”. PressAcademia Procedia, c. 14, sy. 1, 2021, ss. 115-6, doi:10.17261/Pressacademia.2021.1500.
Vancouver Muse S. THE RELATIONSHIP BETWEEN COST MANAGEMENT AND FINANCIAL PERFORMANCE IN TELECOM COMPANIES; TURKEY, EGYPT & SAUDI ARABIA. PAP. 2021;14(1):115-6.

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