The process of financial management in companies of the Republic of Kosovo

Abstract

In the process of financial management in the Republic of Kosovo companies affecting a number of factors that 
are required to consider, in order for this process to be more effective. The main problems will be examined in 
this paper deal with decisions on finance, investment, dividend, financial environment, the time value of money, 
capital budgeting, risk and return, capital resources and financing costs, working capital management and in the 
end bankruptcy and reorganization of the firm. Actually, when we possess enough information about these 
elements which are simultaneously the main pillars of financial management, then the application of these factors 
in the practical part will not encounter many difficulties, and if the opposite happens, we will be able to cope more 
easily because we have recognized cause-effect elements. This paper will make the description of the theoretical 
aspects of the role and impact of factors affecting the financial management process, which will also include an 
analysis that relies on the findings from the empirical data that are collected by research conducted in domestic 
enterprises. The importance of financial management theory will be compared with the reality of business in the 
surveyed enterprises, which will be studied the efficiency of this process which will be summarized with the main 
conclusions and finally offered some potential recommendations that will could have a positive impact on 
improving financial management in general.