Strategic Financial Management Practices and Their Impact on Corporate Performance in Emerging Markets

Abstract

Strategic financial management (SFM) has turned out as one of the most crucial lines of contribution to corporate performance particularly as far as emerging markets are concerned which are volatile, have limited access to capital and are prone to change in regulation systems. The paper will be undertaken to analyse the connection between strategic financial management behaviors such as capital budgeting, working capital optimization, risk management and strategic investment decisions and growth and sustainability of the corporations within emerging economies. Both the theoretical and empirical evidence have been used to derive the dynamic nature of financial planning, innovation and value creation in the paper. The findings of the recent studies have revealed that firms that have put in place the set SFM structures have higher financial standing, increased return on investment (ROI) and competitive edge. It is in this paper that it shall be argued that combination of strategic financial practices, corporate governance, adoption of technology and diversification of risks has great impact on performance outcomes. It has also been discussed how the macroeconomic factors, financial literacy and institutional support should be employed in the shaping of effective financial management in the developing circumstances.