The Contribution of Financial Accountability to the Financial Performance of Dahabshil Remittance Company In Mogadishu-Somalia

Abstract

The study focused on the contribution of financial accountability on financial performance of Dahabshiil Remittance Company in Mogadishu Somalia. The objectives of the study were; (i) to determine the effect of internal control systems on the financial performance of Dahabshiil remittance Company; (ii) to find out the relationship between timely financial reporting and financial performance of Dahabshiil remittance Company, and (iii) to examine the relationship between budget management and the financial performance of Dahabshiil remittance Company. Correlation research design was employed to examine the relationship between financial accountability and financial performance Dahabshiil remittance Company, Stratified and simple random samplings were applied. Data was collected using questionnaire. The study employed quantitative data analysis to examine the relationship between financial accountability and financial performance of Dahabshiil remittance Company, Mogadishu Somalia. Data was analyzed using the Statistical Package for Social Scientists. The findings revealed that there is a positive significance relationship between budget management and financial performance of Dahabshiil remittance Company, Mogadishu Somalia [r (80) = .787, p≤0.05]. The study found that timey financial reporting had strong and positive relationship to the financial performance of Dahabshiil remittance Company, Mogadishu Somalia [r (80) = .761, p≤0.05]. Finally the study found that internal control also had positive and significance relationship to the financial performance of Dahabshiil remittance Company, Mogadishu Somalia [r (80) = .708, p≤0.05].The researcher recommends that Dahabshil managements establishes and manage information system so as to enable all parties within the institution to freely access and utilize the official information. Finally, the researcher further recommends managements of Dahabshiil remittance Company, to be more responsible for the needs and concern of their employees to improve financial performance of the company and to become particularly imperative due to the increasing exposure of Company to international capital markets.