Strategic financial management and policy making: An empirical analysis

Abstract

Strategic Financial Management (SFM) plays a crucial role in ensuring the sustainable growth and competitiveness of modern organizations. This study investigates the relationship between financial strategy, decision-making processes, and organizational performance. Using SMART-PLS software, the research employs Partial Least Squares Structural Equation Modelling (PLS-SEM) to test hypotheses derived from theoretical frameworks such as Resource-Based View (RBV) and Strategic Financial Theory. Data were collected from 220 finance managers and policy analysts across public and private institutions in India. The results reveal that financial planning, risk management, capital structure decisions, and policy formulation significantly influence organizational performance. The study contributes to the existing literature by linking strategic financial management to policy-making effectiveness through empirical validation. The findings suggest that integrating strategic foresight into financial policies enhances long-term economic stability and corporate governance.