ABSTRACT
This study examined the impact of financial management on public enterprises, a case study of Nigeria National Petroleum Corporation. Questionnaires were administered using random sampling technique for data collection. The data obtained were analyzed using chi-square. distribution. The findings of the study revealed that financial management help in controlling the financial resources of a public enterprise also and that public enterprises maximize shareholders wealth. The study recommended among others that physical audits process audit and financial audit should be embarked upon so that the quantity of goods sold, operation procedure and profit can be ascertained.
CHAPTER ONE
INTRODUCTION
1.0 BACKGROUND TO THE STUDY
Raising and utilizing funds efficiently and effectively has been a major source of concern to all financial managers both in the corporate world and Public Sector all over the world. The prime purpose of establishing a firm is to ensure that returns will not only be sufficient to meet the cost of funds but also enough to satisfy the wealth of maximization objective of the firm, thus, raising finance for corporate bodies has become important.
Financial management can thus be described as the managerial planning and controlling of financial resources of a business to achieve the objectives of the business. It has long been considered as a branch .of economics but in the early 20th century it emerged as a separate discipline. It can also be defined as the identification of the possible strategies capable of maximizing an organizations net present value, the allocation of scarce resources among the competing opportunities, and the implementation and monitoring of the chosen strategy so as to achieve stated objectives.
Financial management as a subject is of growing interest to both academics and financial managers. On its emergence, it dealt with only the instruments, institutions and procedures in the capital market. It later dealt with keeping records and reports, establishing funds (external financing) monitoring cash position and paying bills. It also deals with the concepts, assumptions, principle and techniques underlying the major financial decisions of the enterprises. Financial management connotes responsibility for obtaining and effectively utilizing the funds necessary for the efficient operation of an enterprise. The finance function centre around the management of funds, raising and using them effectively. It therefore covers all functions concerned in attempting to ensure that financial resources are obtained and used in the most effective way to secure attainment of the objectives of the organization.
It provides the background for thorough understanding of the nature, theories and critical issues relating to modern financial management. It thus serves as a necessary background to a more advanced treatment of the investment financial decision.
Financial management today now includes a rigorous analysis of Investment of organization's funds in assessing and obtaining the best mix of financial and dividend in relation to overall market valuation of a firm.
The field is still changing with ideas and techniques. The historical background of the company under review is thus:
NIGERIA NATIONAL PETROLEUM COMPANY (N. N. P. C) was established on April 1977 under the statutory instrument decree No. 33 of the same year by a merger of the Nigeria National Oil Corporation operational functions and the ministry of mines and power with its regulating responsibility, this decree established NNPC, a public organization that would on behalf of government adequately manage all government interest in the Nigeria oil industry.
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