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Type :thesis
Subject :HG Finance
Main Author :Al Khalafat, Faris Dhamin
Title :The relationship between using predictive budgets and financial planning effectiveness in Jordanian Manufacturing Companies
Place of Production :Tanjong Malim
Publisher :Fakulti Pengurusan dan Ekonomi
Year of Publication :2022
Corporate Name :Universiti Pendidikan Sultan Idris
PDF Guest :Click to view PDF file

Abstract : Universiti Pendidikan Sultan Idris
This objective of this study is to investigate the relationship between using predictive budgets and the effectiveness of financial planning effectiveness in Jordanian Manufacturing Companies (JMCs). A standardized random sampling method was adopted in this research. The questionnaire has six parts and 61 items were used to measure the relationship between predictive budgets’ enablers and financial planning effectiveness. The research population is consisting of Jordanian manufacturing companies with registered capital of Jordanian Dinar 50,000 or above (approx. US$ 70,000). The total population of the study found is 399 companies, and the sample size was 196 companies. The questionnaires were directed to the highest financial officer in each company. Valid questionnaires for the study were 191, and 5 questionnaires were incomplete. Pearson correlation results proved that there is a significant positive relationship between enablers of using predictive budgets, namely, desire of using predictive budgets, commitment to use system outputs of predictive budgets, determinants of using predictive budgets, using scientific approach in preparing predictive budgets, and the availability of knowledge and skills, and financial planning effectiveness in JMCs. This study contributes to the addition of predictive role of budgeting to theoretical framework according to the best managerial practices. The practical contribution of this study is that it will assist JMCs to increase its financial planning effectiveness and competitiveness abilities.

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