An Evaluation of the Effectiveness of Public Financial Management System being used by Government Departments in Zimbabwe. (2000 – 2011)

The study sought to assess the effectiveness of the Public Financial Management System (PFMS) in financial planning, controlling and monitoring of public funds in government line ministries in Zimbabwe. The study was largely prompted by the fact that despite having professionalized it functions and putting in place a system of responsibility accounting system in 2003, the ministries were still facing a lot of challenges. The primary research (literature review) revealed features required for an effective monitoring, controlling and planning of public funds. It was emphasized that the government should be accountable on the use of public funds. The study was understood in the realism paradigm and employed both qualitative and quantitative (triangulation) methods of data collection. Exploratory study was chosen for this study in as far as it explored to find out the effectiveness of PFMS in government line ministries. Exploratory was useful in clarifying the understanding of the problem, especially when the researcher was not sure of the precise nature of the problem. The target population for the study were all employees who held management  positions and a sample of 70 employees from the government line ministries was used. Systematic sampling (probability sampling) and purposive or judgemental sampling (non-probability sampling) were used in this study. The research employed questionnaires and observations as instruments for gathering data.The researcher revealed that the PFMS is able to produce budgets from the budget proposal up to the final document. The system has effective internal controls with an exception on payment procedures and production of reconciliation statement. The end users are not adequately trained to use the system.Based on the findings of the study and conclusion the researcher makes the following recommendations: the system needs reliable internal control monitoring on payment procedures. The officers need to be trained on how to use the PFMS in the production of reconciliation statement. The training period of the PFMS need to be increased from 8 to 12 hours. Most respondents pointed out that they were not adequately trained to use the system. The study recommends more intensive training of officers in the application of PFMS. Key words: Budget, Public Finance Management System, Internal Control

How the Integrated Approach to Corporate Governance Enhances Company Performance? Case of Delta Beverages.

The researcher wanted to find out how the integrated approach to corporate governance enhances company performance. In the past periods many corporations collapsed and this was attributable to failure to keep in pace with corporate governance evolution trend. On contrary the performance of Delta Beverages proved to be well and it is in that same period that it appreciated and adopted the evolution in corporate governance leading to its adoption of an integrated approach to corporate governance. In light of this, the researcher was then prompted to find out how this integrated approach enhances company performance. The study looked into many sources of literature on the integrated approach to come up with more informed scientific outcomes on the effectiveness of risk management in GRC, how GRC enhances company performance and the benefits accruing from the adoption of GRC. Conclusions were drawn from a total sample of 33 respondents consisting of directors, managers and general employees. It then became evident that the integrated approach to corporate governance enhances company performance and the researcher advocates that the manufacturing industries adopt it. Key words: Governance, Risk Management, and Complianc

Does Corporate Size Influence CEO Incentives? Case of Zimbabwe Stock Exchange Listed Companies

The study sought to analyse the alignment of Chief Executive Officers (CEO) s’ incentives to corporate size (Sales / Revenue) in Zimbabwe Stock Exchange (ZSE) listed companies in 2009 to 2010 trading years. The research was motivated by the results of various findings from previous researches mostly in developed countries. The findings had results ranging from a negative relationship, no relationship, disappearing relationship to a positive relationship being observed. Some of these researches failed to give results because of total lack of information on directors’ fees. Quantitative data was analysed using simple regression model and Chi Square Test. Correlation coefficients were also calculated. The research found a very weak positive relationship between CEO incentives and corporate size and that the link is quickly weakening towards a no relationship if not a negative relationship. The basis for the setting and changes in CEO incentives for the Zimbabwe Stock Exchange listed companies remains a mystery. Information on CEO incentives was unexpectedly very scarce. This resulted in the Chi Square Test results at 5% significant level suggesting that the different sample sizes used could have influenced the research findings – the fall in the relationship. Key words: CEO Incentives; Firm Size; Corporate Performanc

Does Corporate Size Influence CEO Incentives? Case of Zimbabwe Stock Exchange Listed Companies

The study sought to analyse the alignment of Chief Executive Officers (CEO) s’ incentives to corporate size (Sales / Revenue) in Zimbabwe Stock Exchange (ZSE) listed companies in 2009 to 2010 trading years. The research was motivated by the results of various findings from previous researches mostly in developed countries. The findings had results ranging from a negative relationship, no relationship, disappearing relationship to a positive relationship being observed. Some of these researches failed to give results because of total lack of information on directors’ fees. Quantitative data was analysed using simple regression model and Chi Square Test. Correlation coefficients were also calculated. The research found a very weak positive relationship between CEO incentives and corporate size and that the link is quickly weakening towards a no relationship if not a negative relationship. The basis for the setting and changes in CEO incentives for the Zimbabwe Stock Exchange listed companies remains a mystery. Information on CEO incentives was unexpectedly very scarce. This resulted in the Chi Square Test results at 5% significant level suggesting that the different sample sizes used could have influenced the research findings – the fall in the relationship. Key words: CEO Incentives; Firm Size; Corporate Performanc