Financial Risk Management and Public Sector Investment in Rivers State

Abstract

The study investigates the relationship between financial risk management and public sector investment in Rivers State. The study adopted a cross-sectional correlation survey. The population is five (5) ministries in Rivers State. A sample size of 312 respondents was determined from the population using Taro Yemen’s formula. The study made a combined use of both primary and secondary sources. It adopts questionnaire and personal oral interview as the main research instrument for data collection. 312 copies of the questionnaire were administered, out of which 303 copies were retrieved and used for the analysis. Spearman’s rank order correlation coefficient was used to test three null hypotheses using Statistical Package for Social Science (SPSS) version 20. The findings revealed that there is a positive and strong relationship (rho=0.700) between financial and risk management and public infrastructure: there is a positive and very strong relationship (rho=0.821) between financial and risk management and public investment efficiency. Based on these findings we conclude that effective financial risk management is a good tool for increasing public sector investment is a country. The study therefore recommends that; public sector should regularly ensure that its financial risk management is effective to public investment. Treasury management tools such as financial and risk management and cash and liquidity management should be adopted in order to promote public infrastructure and public investment efficiency.

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