Main Article Content
Abstract
Financial management plays a fundamental role in corporate sustainability, influencing investment decisions, risk mitigation, and long-term financial stability. This study examines the strategic importance of financial management in enhancing corporate performance, emphasizing the impact of capital structure optimization, risk management frameworks, and financial technology integration. Drawing from financial theories and empirical evidence, the research highlights the significance of balancing debt and equity financing, utilizing financial derivatives to manage risk exposure, and adopting technological advancements such as artificial intelligence and blockchain for financial decision-making. The study further explores the role of financial governance, liquidity management, and ethical financial practices in fostering investor confidence and regulatory compliance. Findings suggest that firms with proactive financial strategies exhibit greater resilience against economic uncertainties and market fluctuations, achieving sustainable growth and competitive advantage. The study contributes to the existing literature on corporate financial management by providing insights into effective financial planning and decision-making frameworks. The implications extend to corporate managers, policymakers, and financial institutions in developing adaptive financial policies that align with evolving economic and technological landscapes.
Keywords
Article Details

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
References
- Altman, E. I. (2018). Financial distress prediction models and their applications. Journal of Banking & Finance, 10(3), 31-41. https://doi.org/10.1016/j.jbankfin.2018.02.005
- Arner, D. W., Barberis, J., & Buckley, R. P. (2016). The evolution of FinTech: A new post-crisis paradigm? Georgetown Journal of International Law, 47(4), 1271-1319.
- Arnold, G. (2018). Corporate Financial Management (6th ed.). Pearson.
- Beaver, W. H. (1966). Financial ratios as predictors of failure. Journal of Accounting Research, 4(Empirical Research in Accounting: Selected Studies), 71-111. https://doi.org/10.2307/2490171
- Berger, A. N., & Udell, G. F. (2006). A more complete conceptual framework for SME finance. Journal of Banking & Finance, 30(11), 2945-2966. https://doi.org/10.1016/j.jbankfin.2006.05.008
- Brealey, R. A., Myers, S. C., & Allen, F. (2019). Principles of Corporate Finance (13th ed.). McGraw-Hill.
- Brigham, E. F., & Ehrhardt, M. C. (2017). Financial Management: Theory & Practice (15th ed.). Cengage Learning.
- Damodaran, A. (2020). Investment Valuation: Tools and Techniques for Determining the Value of Any Asset (3rd ed.). Wiley.
- Eiteman, D. K., Stonehill, A. I., & Moffett, M. H. (2019). Multinational Business Finance (15th ed.). Pearson.
- Fama, E. F., & French, K. R. (2015). A five-factor asset pricing model. Journal of Financial Economics, 116(1), 1-22. https://doi.org/10.1016/j.jfineco.2014.10.010
- Gomber, P., Koch, J. A., & Siering, M. (2017). Digital finance and FinTech: Current research and future research directions. Journal of Business Economics, 87(5), 537-580. https://doi.org/10.1007/s11573-017-0852-x
- Graham, J. R., & Harvey, C. R. (2001). The theory and practice of corporate finance: Evidence from the field. Journal of Financial Economics, 60(2-3), 187-243. https://doi.org/10.1016/S0304-405X(01)00044-7
- Greenbaum, S. I., Thakor, A. V., & Boot, A. W. A. (2019). Contemporary Financial Intermediation (4th ed.). Elsevier.
- Hull, J. C. (2022). Options, Futures, and Other Derivatives (11th ed.). Pearson.
- Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs, and ownership structure. Journal of Financial Economics, 3(4), 305-360. https://doi.org/10.1016/0304-405X(76)90026-X
- Kaplan, R. S., & Norton, D. P. (1996). Using the balanced scorecard as a strategic management system. Harvard Business Review, 74(1), 75-85.
- Khan, M. Y., & Jain, P. K. (2018). Financial Management: Text, Problems, and Cases (7th ed.). McGraw-Hill.
- Laeven, L., & Valencia, F. (2018). Systemic banking crises revisited. IMF Working Papers, 18(206), 1-41. https://doi.org/10.5089/9781484374903.001
- Lintner, J. (1965). Security prices, risk, and maximal gains from diversification. The Journal of Finance, 20(4), 587-615. https://doi.org/10.2307/2977249
- Merton, R. C. (1973). Theory of rational option pricing. The Bell Journal of Economics and Management Science, 4(1), 141-183. https://doi.org/10.2307/3003143
- Modigliani, F., & Miller, M. H. (1958). The cost of capital, corporation finance, and the theory of investment. The American Economic Review, 48(3), 261-297.
- Myers, S. C. (1977). Determinants of corporate borrowing. Journal of Financial Economics, 5(2), 147-175. https://doi.org/10.1016/0304-405X(77)90015-0
- Ross, S. A., Westerfield, R. W., & Jaffe, J. (2020). Corporate Finance (12th ed.). McGraw-Hill.
- Titman, S., & Keown, A. J. (2016). Financial Management: Principles and Applications (12th ed.). Pearson.
- Zhang, L., Xue, C., & Ma, L. (2020). The role of artificial intelligence in financial decision-making. Journal of Financial Technology, 2(3), 87-104. https://doi.org/10.1016/j.jfintech.2020.06.004
References
Altman, E. I. (2018). Financial distress prediction models and their applications. Journal of Banking & Finance, 10(3), 31-41. https://doi.org/10.1016/j.jbankfin.2018.02.005
Arner, D. W., Barberis, J., & Buckley, R. P. (2016). The evolution of FinTech: A new post-crisis paradigm? Georgetown Journal of International Law, 47(4), 1271-1319.
Arnold, G. (2018). Corporate Financial Management (6th ed.). Pearson.
Beaver, W. H. (1966). Financial ratios as predictors of failure. Journal of Accounting Research, 4(Empirical Research in Accounting: Selected Studies), 71-111. https://doi.org/10.2307/2490171
Berger, A. N., & Udell, G. F. (2006). A more complete conceptual framework for SME finance. Journal of Banking & Finance, 30(11), 2945-2966. https://doi.org/10.1016/j.jbankfin.2006.05.008
Brealey, R. A., Myers, S. C., & Allen, F. (2019). Principles of Corporate Finance (13th ed.). McGraw-Hill.
Brigham, E. F., & Ehrhardt, M. C. (2017). Financial Management: Theory & Practice (15th ed.). Cengage Learning.
Damodaran, A. (2020). Investment Valuation: Tools and Techniques for Determining the Value of Any Asset (3rd ed.). Wiley.
Eiteman, D. K., Stonehill, A. I., & Moffett, M. H. (2019). Multinational Business Finance (15th ed.). Pearson.
Fama, E. F., & French, K. R. (2015). A five-factor asset pricing model. Journal of Financial Economics, 116(1), 1-22. https://doi.org/10.1016/j.jfineco.2014.10.010
Gomber, P., Koch, J. A., & Siering, M. (2017). Digital finance and FinTech: Current research and future research directions. Journal of Business Economics, 87(5), 537-580. https://doi.org/10.1007/s11573-017-0852-x
Graham, J. R., & Harvey, C. R. (2001). The theory and practice of corporate finance: Evidence from the field. Journal of Financial Economics, 60(2-3), 187-243. https://doi.org/10.1016/S0304-405X(01)00044-7
Greenbaum, S. I., Thakor, A. V., & Boot, A. W. A. (2019). Contemporary Financial Intermediation (4th ed.). Elsevier.
Hull, J. C. (2022). Options, Futures, and Other Derivatives (11th ed.). Pearson.
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs, and ownership structure. Journal of Financial Economics, 3(4), 305-360. https://doi.org/10.1016/0304-405X(76)90026-X
Kaplan, R. S., & Norton, D. P. (1996). Using the balanced scorecard as a strategic management system. Harvard Business Review, 74(1), 75-85.
Khan, M. Y., & Jain, P. K. (2018). Financial Management: Text, Problems, and Cases (7th ed.). McGraw-Hill.
Laeven, L., & Valencia, F. (2018). Systemic banking crises revisited. IMF Working Papers, 18(206), 1-41. https://doi.org/10.5089/9781484374903.001
Lintner, J. (1965). Security prices, risk, and maximal gains from diversification. The Journal of Finance, 20(4), 587-615. https://doi.org/10.2307/2977249
Merton, R. C. (1973). Theory of rational option pricing. The Bell Journal of Economics and Management Science, 4(1), 141-183. https://doi.org/10.2307/3003143
Modigliani, F., & Miller, M. H. (1958). The cost of capital, corporation finance, and the theory of investment. The American Economic Review, 48(3), 261-297.
Myers, S. C. (1977). Determinants of corporate borrowing. Journal of Financial Economics, 5(2), 147-175. https://doi.org/10.1016/0304-405X(77)90015-0
Ross, S. A., Westerfield, R. W., & Jaffe, J. (2020). Corporate Finance (12th ed.). McGraw-Hill.
Titman, S., & Keown, A. J. (2016). Financial Management: Principles and Applications (12th ed.). Pearson.
Zhang, L., Xue, C., & Ma, L. (2020). The role of artificial intelligence in financial decision-making. Journal of Financial Technology, 2(3), 87-104. https://doi.org/10.1016/j.jfintech.2020.06.004