Financial Management Practices: A Study of Public Sector Enterprises in India

The study looks at all the major aspects of financial management, namely, capital budgeting practices, capital structure decisions, “dividend policies, working capital management, and risk management practices followed by them. Thus, the study provides empirical evidence regarding the level of professionalism in the financial decision-making of the central PSES. Finally, the study also examines its financial performance in terms of profitability and efficiency. The analysis has been carried out separately for manufacturing PSES and service providing PSES for 1991-2003. For the purpose of the study, the secondary data has been collated from the CMIE (Centre for Monitoring Indian Economy) and primary data has been collected through a questionnaire survey. The data analysis is based on well-accepted tools and techniques in financial management. The study has academic as well as practical significance. The findings of the study have policy implications for the Government as well as finance managers of PSES.