Importance of Proper Financial Management

Journal Title: The Effect of Coronavirus (Covid-19) on the Jordanian Economy: A

Comprehensive Analysis of the Economy and How to Return Growth Rapidly

Authors: Wesam Abu-Mater, Fares Alsufy and Malik Abu

Date: December 2020

Source: https://documentcloud.adobe.com/link/review?uri=urn:aaid:scds:US:77f323df-9235-

4a44-8b67-400b9b099e31

Summary

Coronavirus (COVID-19) pandemic has had adverse effects on the economic climate

contained in Jordan. The pandemic has extremely affected almost all business in turn affecting

the overall economy across the nation. In Jordan, Covid-19 threated national exports,

investments, supply, banking techniques, sense of balance of payments and the developed

budgets. Assessment of coronavirus outbreaks on the Jordan economic climate calls for a focus

not only on the economic downturn but also on the causes that matter to decision makers in

government institutions and administrations. The approaches to determine handling of such

economic downturn requires shaping standard frameworks in financial management, especially

because of the effects of coronavirus on the Jordan economic climate.

Strengths and Limitations

The article points out that in order to take appropriate mitigation measures to adjust the

existing emergency measures, financial management is essential in provision of resourceful,

adaptable and innovative measures in times of crisis. The comprehensive analysis incorporates
information on Jordan’s economic scale over the year, which is essential in finding out how the

nation’s financial management has sustained its economy. However, the article fails to

strategically point out the exact financial management measures such as cash flow management,

risk analysis and systemic appraisal of past, current and future scenarios.

Interpretation of the findings

Abu-Mater, Alsufy and Afifa’s findings shows that Covid-19 pandemic interrupted its

economy in terms of cash flow, reduced demand and supply, and disruptions of the value chains.

From the findings, the ability for Jordan financial institutions and administration to survive an

economic crisis depends on multiple factors such as how agile enterprises are in ensuring

business continuity and adapting their business processes. The survey indicated that many

businesses suffered because of poor planning of their financial health even before the Covid-19

crisis. In the context of fiscal constraint, the article recommends that it is important for

governments to develop a clear and transparent approach to support prioritization of business to

be supported as well as simply access to and awareness of available support measures.

 Reference

Abu-Mater, W., Alsufy, F., & Afifa, M. A. (2020). The Effect of Coronavirus (Covid-19) on the

Jordanian Economy: A Comprehensive Analysis of the Economy and How to Return

Growth Rapidly. Journal of Accounting, Finance & Management Strategy, 15(2), 1-30.