STUDY OF THE FINANCIAL MANAGEMENT PRATICE IN NATIONAL CONSTRUCTION BUSINESS ENTITIES WITH THE BEST FINANCIAL PERFORMANCE

• Main Author: SEPTIAN - NIM: 25014303, RIDHO
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/30452
• Institution: Institut Teknologi Bandung

<p align="justify">A number of studies reveal that one of the causes of contractor bussiness failure is due to financial factors, such as the weakness of cashflow management, inadequate sources of funding, and low margin of profit due to competition. The studies therefore sought to determine the relationship between financial management practices with financial performance. Due to several findings, this study will explore the financial management practices in BUJK with the best perceived financial performed to get the lesson learned for others similar BUJK. <br /> <br /> <br /> The financial performance assessment of BUJK is measured by using conventional method ( ratio of several values contained in BUJK financial statements). The ratio is analyzed vertically and horizontally by category, trend and distribution of financial ratio data. The best financial performer is the BUJK which has the highest total value based on the assessment of liquidity, solvency, profitability and activity ratios. BUJK's financial management practices are reviewed through the aspects of financial management principles, financial reporting practices and liquidity management practices that are entirely compared to their implementation with existing regulations and best practices. <br /> <br /> <br /> Based on the analysis of financial performance, it is known that BUMS has a healthier financial performance than BUMN. Financial management practices undertaken in relation to liquidity management are centralizing financial management, seeking alternative sources of financing with competitive interests, using of financing facilities partner, and issuing of bonds and other securities. BUJK's financial reporting practices are conducted on a regular and timely basis, displaying important informations including balance sheets, income statements, changes in equity, cash flow statements. Those cashflow statements should be presented with the previous year's comparisons and in accordance with PSAK, and have been audited by independent auditors with Fair opinion results. BUJK's financial management principles have applied the principles of financial management, including: Consistency, Transparency, Accountability, Integrity, Viability, Management and Accounting Standards.<p align="justify">