Analysis of Financial System Governance on Financial Sustainability of Manufacturing Companies in Rwanda

Harelimana BJ and Buregeya BJ

Published on: 2020-10-29

Abstract

This study intended to analyse the financial system governance on financial sustainability of manufacturing company in Rwanda. The objective of this study was to find out the relationship between financial system governance and financial sustainability of AMEKI COLOR. The Methodology applied the descriptive and linear regression approaches. Target population was 270 employees of AMEKI COLOR and Sample size were 73 respondents. The findings on the level of determinants of financial system governance of AMEKI COLOR were presented on the tables from 4.2 to 4.6 that show the financial system subsidiarity as confirmed on average rate of 75.9%. The financial system deserved authority is confirmed on average rate of 81.4%. The financial system mutual trust confirmed on average rate of 83.55% while the efficiency financial decision making of AMEKI COLOR confirmed on average rate of 88.0%. The levels of indicators of financial sustainability of AMEKI COLOR presented on the table 4.7 up to 4.15 which confirmed that profitability was confirmed on average rate of  85.83%. The liquidity of AMEKI COLOR was confirmed on average rate of 84.25%. Solvability was on average rate of 89.46% as confirmed by respondents of AMEKI COLOR. In terms of the relationship between financial system governance and financial sustainability of AMEKI COLOR were shown table 4.18 which confirmed that proper financial system mutual trust between staff help organization to increase performance was on rate of 86.3% respondents. Based to the findings the research hypotheses were verified where null hypothesis was rejected and alternative hypothesis was retained by saying that there is a relationship between financial system governance and financial sustainability of AMEKI COLOR. AMEKI COLOR should take the stock of the overall performance of the portfolio in relation to the program’s objectives and strategies.