Short-term financial planning in two selected Maltese firms : a comparative and analytical approach

Abstract

The purpose of this dissertation was to outline the theory of short-term financial planning and to apply the theory to the cases of two Maltese firms operating in different industries. It is important for firms to prepare and assess short-term plans. Good management of working capital improves the liquidity position of a firm which is crucial for short-term as well as long-term survival and success of a business. Different practices for short-term financial planning exist between firms operating in different industries. This is due to different policies adopted by the operators within the industry, which are influenced by the nature of the business and the risks to which they are exposed. The findings reveal that the nature of the industry in which a firm is operating may pose different challenges to managers involved with short-term financial planning.