Systematic Literature Review on the Role of Financial Management Practices in Enhancing Corporate Performance

This study conducts a Systematic Literature Review (SLR) to examine the role of financial management practices in enhancing corporate performance. Financial management has long been recognized as a cornerstone of organizational success, yet the dynamic global business environment demands updated insights into how its practices—such as capital structure, working capital management, investment decisions, and dividend policies—affect performance outcomes. Using the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) protocol, we analyzed 78 peer-reviewed articles published in Scopus-indexed journals between 2019 and 2024. The review reveals three dominant themes: (1) effective financial management improves profitability and shareholder value by optimizing resource allocation; (2) sound financial policies enhance corporate resilience, particularly during economic downturns and global crises such as COVID-19; and (3) the integration of digital technologies and sustainable finance strategies significantly strengthens decision-making processes and long-term competitiveness. Furthermore, evidence suggests that financial management practices are strongly mediated by governance quality, leadership capability, and regulatory environments. The findings provide comprehensive insights for managers, investors, and policymakers in designing strategies to maximize organizational value. This study contributes to the literature by offering a structured synthesis of contemporary research and identifying future directions for financial management scholarship.