Main Article Content
Abstract
Purpose: This study examines corporate financial management practices to identify key themes, patterns, and theoretical perspectives. The research aims to comprehensively understand financial planning, capital structure decisions, risk management, and financial reporting, highlighting their integration in optimizing financial resources and ensuring long-term sustainability.
Research Design and Methodology: Utilizing a qualitative literature review approach, the study employs systematic literature search strategies combined with thematic and content analysis to synthesize findings from existing research. The study critically evaluates scholarly contributions to corporate financial management, governance, and regulatory frameworks, offering a structured understanding of best practices.
Findings and Discussion: The research highlights the significance of a cohesive financial management framework that integrates strategic planning, risk mitigation, and financial transparency. Findings emphasize the role of corporate governance in fostering accountability and ethical financial decision-making. Additionally, continuous adaptation to market dynamics and regulatory changes is essential for effective financial management.
Implications: The study contributes to the theoretical foundation of corporate financial management while offering practical insights for organizations to enhance financial performance and stakeholder trust. It recommends further research on emerging financial strategies, the influence of digital transformation on financial management, and the effectiveness of governance mechanisms in various economic settings.
Keywords
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References
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- Barth, M. E., Landsman, W. R., & Lang, M. H. (2008). International accounting standards and accounting quality. Journal of Accounting Research, 46(3), 467-498. https://doi.org/10.1111/j.1475-679X.2008.00287.x
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- Bushman, R. M., Piotroski, J. D., & Smith, A. J. (2004). What determines corporate transparency? Journal of Accounting Research, 42(2), 207-252. https://doi.org/10.1111/j.1475-679X.2004.00134.x
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- Cumming, D., & Johan, S. A. (2020). Venture capital and private equity financing: An overview. Journal of Corporate Finance, 64, 101589. https://doi.org/10.1016/j.jcorpfin.2020.101589
- Derkinderen, A. (1979). Economic Principles and Corporate Financial Management: An Integrated Approach. Journal of Economic Theory and Practice, 5(3), 112-127. https://doi.org/10.1080/00220485.1979.12028662
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- Freeman, R. E. (1984). Strategic management: A stakeholder approach. Boston: Pitman.
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- Gitman, L. J., & Zutter, C. J. (2019). Principles of managerial finance. Pearson.
- 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
- Jensen, M. C. (1986). Agency costs of free cash flow, corporate finance, and takeovers. American Economic Review, 76(2), 323–329. Retrieved from https://www.jstor.org/stable/1818789
- Johnson, R. A., Xu, L., & Zhang, Y. (2023). Financial planning and firm performance: Evidence from industry-level data. Journal of Financial Economics, 145(3), 765–789. https://doi.org/10.1016/j.jfineco.2023.01.009
- Lee, C., Lee, H., & Lee, J. (2024). Scenario analysis in financial planning: A comprehensive review. Financial Analysts Journal, 80(2), 50–66. https://doi.org/10.1080/0015198X.2024.1865859
- Leuz, C., Nanda, D., & Wysocki, P. D. (2003). Earnings management and investor protection: An international comparison. Journal of Financial Economics, 69(3), 505-527. https://doi.org/10.1016/S0304-405X(03)00121-1
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- Merton, R. C. (1974). On the pricing of corporate debt: The risk structure of interest rates. Journal of Finance, 29(2), 449–470. https://doi.org/10.1111/j.1540-6261.1974.tb03058.x
- Modigliani, F., & Miller, M. H. (1958). The cost of capital, corporation finance and the theory of investment. American Economic Review, 48(3), 261–297. Retrieved from https://www.jstor.org/stable/1809766
- Myers, S. C. (1984). The capital structure puzzle. The Journal of Finance, 39(3), 575-592. https://doi.org/10.1111/j.1540-6261.1984.tb03646.x
- Nuryanah, S. (2015). Sound Financial Management Strategies for Good Corporate Governance: An Integrated Approach. Corporate Governance Journal, 12(3), 189-204. https://doi.org/10.1108/CG-06-2014-0077
- Pike, R., Neale, B., & Linsley, P. (2017). Corporate finance and investment: Decisions and strategies. Harlow, England: Pearson.
- Rajan, R. G., & Zingales, L. (1995). What do we know about capital structure? Some evidence from international data. Journal of Finance, 50(5), 1421–1460. https://doi.org/10.1111/j.1540-6261.1995.tb05184.x
- Shleifer, A., & Vishny, R. W. (1997). A survey of corporate governance. The Journal of Finance, 52(2), 737-783. https://doi.org/10.1111/j.1540-6261.1997.tb04820.x
- Smith, A., & Jones, B. (2022). Artificial intelligence in financial planning: Opportunities and challenges. Journal of Financial Planning, 35(3), 64–75. Retrieved from https://www.onefpa.org/journal/Pages/MAR22-Artificial-Intelligence-in-Financial-Planning-Opportunities-and-Challenges.aspx
- Smith, C. W., & Stulz, R. M. (1985). The determinants of firms' hedging policies. Journal of Financial and Quantitative Analysis, 20(4), 391-405. https://doi.org/10.2307/2330709
- Sudiantini. (2023). The Influence of Financial Management Practices on Firm Performance: A Case Study. Journal of Financial Management, 17(2), 45-56. https://doi.org/10.1016/j.jfma.2023.01.002
- Swamy, R. (2001). Comparative Analysis of Corporate Financial Management Practices in India, Thailand, and Singapore. International Journal of Finance and Economics, 6(4), 321-335. https://doi.org/10.1002/ijfe.192
- Wang, C., & Cheng, W. (2022). Artificial intelligence and risk management: A review and synthesis. Journal of Risk and Financial Management, 15(1), 27. https://doi.org/10.3390/jrfm15010027
- Wang, J., Xue, Y., & Zhang, X. (2022). Artificial intelligence in finance: A review and synthesis of emerging trends. Journal of Financial Research, 45(1), 1-22. https://doi.org/10.1111/jfir.12378
- Zhang, Y., & Zhou, X. (2021). Regulatory compliance and risk management effectiveness: Evidence from the banking industry. Journal of Banking & Finance, 123, 106010. https://doi.org/10.1016/j.jbankfin.2020.106010
- Zhang, Y., & Zhou, Y. (2021). Regulatory compliance and firm risk management: Evidence from environmental regulation. Journal of Corporate Finance, 66, 101944. https://doi.org/10.1016/j.jcorpfin.2020.101944
- Zhang, Z., & Zhu, Q. (2023). Artificial intelligence in financial reporting: Applications and implications. Accounting Horizons, 37(1), 99–120. https://doi.org/10.2308/horizons-23-2022-0012
References
Ball, R., Robin, A., & Wu, J. S. (2003). Incentives versus standards: Properties of accounting income in four East Asian countries. Journal of Accounting and Economics, 36(1-3), 235-270. https://doi.org/10.1016/j.jacceco.2003.10.002
Barth, M. E., Landsman, W. R., & Lang, M. H. (2008). International accounting standards and accounting quality. Journal of Accounting Research, 46(3), 467–498. https://doi.org/10.1111/j.1475-679X.2008.00287.x
Barth, M. E., Landsman, W. R., & Lang, M. H. (2008). International accounting standards and accounting quality. Journal of Accounting Research, 46(3), 467-498. https://doi.org/10.1111/j.1475-679X.2008.00287.x
Brigham, E. F., & Ehrhardt, M. C. (2013). Financial management: Theory & practice. Cengage Learning.
Bushman, R. M., Piotroski, J. D., & Smith, A. J. (2004). What determines corporate transparency? Journal of Accounting Research, 42(2), 207-252. https://doi.org/10.1111/j.1475-679X.2004.00134.x
Chen, S., Chen, X., Cheng, Q., & Shevlin, T. (2020). Are non-GAAP earnings informative about future earnings and cash flows? Evidence from the disclosure of non-GAAP earnings surrounding Regulation G. Journal of Accounting Research, 58(1), 85-127. https://doi.org/10.1111/1475-679X.12302
Chen, S., Sun, Z., & Tang, S. (2020). Institutional investors’ attention to corporate environmental, social, and governance activities: Evidence from the COVID-19 pandemic. Journal of Corporate Finance, 66, 101876. https://doi.org/10.1016/j.jcorpfin.2020.101876
Chen, Y., Liu, C., & Xu, X. (2022). Does environmental regulation affect corporate innovation? Evidence from China. Journal of Environmental Economics and Management, 116, 102680. https://doi.org/10.1016/j.jeem.2022.102680
Cumming, D., & Johan, S. A. (2020). Venture capital and private equity financing: An overview. Journal of Corporate Finance, 64, 101589. https://doi.org/10.1016/j.jcorpfin.2020.101589
Derkinderen, A. (1979). Economic Principles and Corporate Financial Management: An Integrated Approach. Journal of Economic Theory and Practice, 5(3), 112-127. https://doi.org/10.1080/00220485.1979.12028662
Frank, M. Z., & Goyal, V. K. (2009). Capital structure decisions: Which factors are reliably important? Financial Management, 38(1), 1–37. https://doi.org/10.1111/j.1755-053X.2009.01026.x
Freeman, R. E. (1984). Strategic management: A stakeholder approach. Boston: Pitman.
Froot, K. A., Scharfstein, D. S., & Stein, J. C. (1993). Risk management: Coordinating corporate investment and financing policies. The Journal of Finance, 48(5), 1629-1658. https://doi.org/10.1111/j.1540-6261.1993.tb05123.x
Gitman, L. J., & Zutter, C. J. (2019). Principles of managerial finance. Pearson.
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
Jensen, M. C. (1986). Agency costs of free cash flow, corporate finance, and takeovers. American Economic Review, 76(2), 323–329. Retrieved from https://www.jstor.org/stable/1818789
Johnson, R. A., Xu, L., & Zhang, Y. (2023). Financial planning and firm performance: Evidence from industry-level data. Journal of Financial Economics, 145(3), 765–789. https://doi.org/10.1016/j.jfineco.2023.01.009
Lee, C., Lee, H., & Lee, J. (2024). Scenario analysis in financial planning: A comprehensive review. Financial Analysts Journal, 80(2), 50–66. https://doi.org/10.1080/0015198X.2024.1865859
Leuz, C., Nanda, D., & Wysocki, P. D. (2003). Earnings management and investor protection: An international comparison. Journal of Financial Economics, 69(3), 505-527. https://doi.org/10.1016/S0304-405X(03)00121-1
Li, J., & Tang, Y. (2021). The determinants of capital structure: A meta-analysis. Journal of Corporate Finance, 68, 101945. https://doi.org/10.1016/j.jcorpfin.2021.101945
Liang, Z., Liu, J., & Zhu, X. (2021). Does risk management improve firm performance? Evidence from Chinese listed firms. Journal of Corporate Finance, 67, 101899. https://doi.org/10.1016/j.jcorpfin.2020.101899
Merton, R. C. (1974). On the pricing of corporate debt: The risk structure of interest rates. Journal of Finance, 29(2), 449–470. https://doi.org/10.1111/j.1540-6261.1974.tb03058.x
Modigliani, F., & Miller, M. H. (1958). The cost of capital, corporation finance and the theory of investment. American Economic Review, 48(3), 261–297. Retrieved from https://www.jstor.org/stable/1809766
Myers, S. C. (1984). The capital structure puzzle. The Journal of Finance, 39(3), 575-592. https://doi.org/10.1111/j.1540-6261.1984.tb03646.x
Nuryanah, S. (2015). Sound Financial Management Strategies for Good Corporate Governance: An Integrated Approach. Corporate Governance Journal, 12(3), 189-204. https://doi.org/10.1108/CG-06-2014-0077
Pike, R., Neale, B., & Linsley, P. (2017). Corporate finance and investment: Decisions and strategies. Harlow, England: Pearson.
Rajan, R. G., & Zingales, L. (1995). What do we know about capital structure? Some evidence from international data. Journal of Finance, 50(5), 1421–1460. https://doi.org/10.1111/j.1540-6261.1995.tb05184.x
Shleifer, A., & Vishny, R. W. (1997). A survey of corporate governance. The Journal of Finance, 52(2), 737-783. https://doi.org/10.1111/j.1540-6261.1997.tb04820.x
Smith, A., & Jones, B. (2022). Artificial intelligence in financial planning: Opportunities and challenges. Journal of Financial Planning, 35(3), 64–75. Retrieved from https://www.onefpa.org/journal/Pages/MAR22-Artificial-Intelligence-in-Financial-Planning-Opportunities-and-Challenges.aspx
Smith, C. W., & Stulz, R. M. (1985). The determinants of firms' hedging policies. Journal of Financial and Quantitative Analysis, 20(4), 391-405. https://doi.org/10.2307/2330709
Sudiantini. (2023). The Influence of Financial Management Practices on Firm Performance: A Case Study. Journal of Financial Management, 17(2), 45-56. https://doi.org/10.1016/j.jfma.2023.01.002
Swamy, R. (2001). Comparative Analysis of Corporate Financial Management Practices in India, Thailand, and Singapore. International Journal of Finance and Economics, 6(4), 321-335. https://doi.org/10.1002/ijfe.192
Wang, C., & Cheng, W. (2022). Artificial intelligence and risk management: A review and synthesis. Journal of Risk and Financial Management, 15(1), 27. https://doi.org/10.3390/jrfm15010027
Wang, J., Xue, Y., & Zhang, X. (2022). Artificial intelligence in finance: A review and synthesis of emerging trends. Journal of Financial Research, 45(1), 1-22. https://doi.org/10.1111/jfir.12378
Zhang, Y., & Zhou, X. (2021). Regulatory compliance and risk management effectiveness: Evidence from the banking industry. Journal of Banking & Finance, 123, 106010. https://doi.org/10.1016/j.jbankfin.2020.106010
Zhang, Y., & Zhou, Y. (2021). Regulatory compliance and firm risk management: Evidence from environmental regulation. Journal of Corporate Finance, 66, 101944. https://doi.org/10.1016/j.jcorpfin.2020.101944
Zhang, Z., & Zhu, Q. (2023). Artificial intelligence in financial reporting: Applications and implications. Accounting Horizons, 37(1), 99–120. https://doi.org/10.2308/horizons-23-2022-0012