Research On Financial Management Models Of Some Chinese Overseas Subsidiaries In Ghana

China has emerged as Africa‘s largest trading partner,providing demand for the continent‘s energy and minerals.At the same time,there is a growing volume of Chinese direct investment in Africa.Chinese investment in Africa has increased dramatically,making the country the single largest contributor of foreign direct investment(FDI)capital and jobs in Africa in 2016,according to Ernst & Young's(EY)latest Africa Attractiveness report.Since 2005,China has invested in 293 FDI projects in Africa,totaling an investment outlay of $66.4 billion and creating 130,750 jobs.Chinese FDI into Africa is well diversified across sectors,covering resource-oriented ones as well as services and manufacturing.Over recent periods,especially in the last two decades,Africa has recorded growth and received inflows of both direct and indirect forms of foreign investment.This is due to ongoing globalization and to the redistribution or allocation of capital and wealth among nations with the idea of competing on a global scale.Many countries,particularly sub-Saharan African countries,have seen this trend as part and parcel of their long term development plan and growth agenda ever since China became a development partner for most of these countries.China-Africa bilateral trade dates back centuries ago around 700 AD during the Tang Dynasty era.However it is interesting to note that for the past fifteen years trade between China and Africa has been on the rise and China can be said to be the major trade partner of Africa.Ghana opened its economy to the world economic order since 1983,as a result,of the massive economic mismanagement,political instability,balance of payments deficit,and poor terms of trade as well as bad weather conditions that characterized the nation‘s economy prior to 1983.In this partnership with Africa,Ghana the gate way to Africa cannot be left out and for that reason there exist a lot of trade between Ghana and China with some Chinese subsidiaries pitching camp in Ghana.Association between the two countries date back to the 1960‘s when the countries first established diplomatic relations.In 2011,an incredible growth of 69% and in dollar terms $3.5 billion was the bilateral trade between China and Ghana.The main purpose of this research work was financial management(FM)model and their profitability of some Chinese subsidiaries in Ghana.In this study a descriptive design with a targeted population of sixty(60)respondents but only fifty three(53)was used after data cleaning.In all fifteen(15)organizations(subsidiaries)were used for the study.A three(3)part questionnaire was the source of the primary data collected or this study.Simple random sample(SRS)was used in this work.One of the probability sampling methods where every member of a population has the same chance of selection was the main reason for using the SRS.With the simple random sampling method,whenever a unit is selected for the sample,the units of the population have equal chance to be selected.It must be noted that the probability of selecting the first element is not to be compared with the probability of selecting the second unit.Descriptive research is unique in the number of variables employed.Like other types of research,descriptive research can include multiple variables for analysis,yet unlike other methods,it requires only one variable.For example,a descriptive study might employ methods of analyzing correlations between multiple variables by using tests such as Pearson's Product Moment correlation,regression,or multiple regression analysis.Here,descriptive instruments,mean,standard deviation and correlation were used for data analysis in Microsoft(Ms)excel.Data in this study has been presented using pie charts,bar graphs,percentages,means and standard deviation.The correlation analysis helped us to find the relation between the dependent variable and the independent variables set out by the researcher.The study concludes that there exist a good correlation between the dependent variable Return on Assets(ROA)and the independent variables financial reporting analysis(FRA),financial budgeting and planning(FBP),fixed assets management(FAM)and working capital management(WCM)with correlation of 0.51,0.53,0.72 and 0.64 respectively.Finally the study recommends that subsidiaries that are state owned should be given more mandates to carry functions without recourse to China to avoid delays in decision making.