The Effect of Psychological Capital on the Financial Performance of Local Governorates in Gaza Strip

Abstract

This study aimed to investigate the impact of psychological capital on the financial performance of local Governorates in Gaza Strip, in order to achieve the objectives of the study researcher relied on the literature and previous relevant studies to obtain data and information of the theoretical framework, the practical framework has been used the questionnaire to suit the subject the study and hypotheses to collect preliminary data on the subject of the study, also financial ratios analysis was made of all the municipalities of Gaza Strip over three years 2014,2015, and 2016 to measure the financial performance, where the study was applied to all of the 25 municipalities of the Gaza Strip, (220) questionnaires were distributed using the Comprehensive count method to all the financial and administrative department staff of those municipalities, (182) questionnaires were recovered and valid for analysis, that means the recovery rate was (83%), a statistical analysis was made for questionnaires using statistical analysis program (SPSS) and Standard Analysis Program (Eviews), and to conduct appropriate tests of this type in order to test the hypotheses and to reach indications of values ​​that support the subject of the study. The most important findings which the study reached, the existence of a disparity in the effect of the dimensions of psychological capital (self-efficacy, hope, optimism and resilience) on the liquidity indicators and the production efficiency indicators of the local Governorates in Gaza Strip. Where there is no statistically significant effect of the dimensions of psychological capital (Self-efficacy, hope, optimism and resilience) on the indicators of financial flexibility and Productive efficiency of the individual indicators for the local Governorates in the Gaza Strip. The efficiency of financial performance during the years 2014, 2015 and 2016 was low. there is statistically significant effect of resilience dimension due to the age variable, while there is no statistically significant effect of the other dimensions of psychological capital (Self-efficacy, hope, and optimism) due to the controllable variables (age, qualification, experience, and current job), and that psychological capital development strategies (job satisfaction, Incentives and rewards, the provision of an appropriate work environment, and equity in the municipality) have a positive role in improving the financial performance of the local Governorates in Gaza Strip. The most important recommendations: is the need of the municipal administration to enhance psychological capital, job satisfaction, justice and equity, pay attention to incentives and periodic rewards, and provide an appropriate work environment for municipal employees, which will enhance the psychological capital, enhance organizational and municipal programs in the municipal strategic plan, and to find ways to increase collection efficiency and reduce indebtedness.

Keywords: Psychological Capital - Financial Performance – Local Governorates – Financial Ratios.

DOI: 10.7176/JEP/11-24-09

Publication date: December 31^st 2020