Factors influencing financial decision-making in Zimbabwe Union Conference institutions

Abstract

This paper investigated various elements that affect financial decision-making in church denominational institutions operated by the Zimbabwe Union Conference and the link between financial reporting and financial decision-making. Denominational policy provides guidelines for the financial reporting process, but some entities do not adhere to the policy requirements. The study was a cross-sectional and causal one using a questionnaire that was distributed to all the board members of the five respondent institutions. The questionnaire was used to determine the financial reporting practices and their relationship to financial decision-making in the institutions. For the descriptive data, the method of analysis was frequency and percentages as well as mean and standard deviation. Correlation analysis was used to analyse the relationship between the financial reporting variables and decision making, and a regression analysis was used to assess if any of the variables have an effect on decision-making. Only three of the variables under study have a significant relationship with decision-making, namely: the combination of the financial statements constituting the financial report, the board’s understanding of the financial report and the role of the higher organization. Only the Role of the Higher Organization has a significant effect on financial decision-making. Therefore, I conclude that the higher organisation must be diligent in implementing oversight and requiring compliance with the working policy.