Effectiveness of Strategic Financial Management - Group 2-12 ABM

Republic of the Philippines
Region III
Division of Gapan MARUHAT
NATIONAL HIGH SCHOOL Maruhat,
Macabaklay, Gapan City
EFFECTIVENESS OF STRATEGIC FINANCIAL

MANAGEMENT IN A CORPORATION
Mendoza, Eric D.G.

Vargas, Mike L.
Barredo, Jomay G.
Hernandez, Jessica D.G.
Mendoza, Hanelyn H.
Researchers
Roilan P. Lopez PhD

Research Adviser
Maruhat National High School

Maruhat, Macabaklay, Gapan City
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ABSTRACT
A good financial management practice system should ensure the succeeding quantitative
characteristics are met: understandability, significance, materiality, reliability, and substance
over form, carefulness, completeness, comparability,suitability, and a equilibrium between
benefit and cost yet they continue to lack in most private service companies (DEMBA, 2013).
Corporate governance that implements appropriate environmental and social policies tends to
decrease the cost of debt (by mitigating the cost of borrowing) and the cost of equity (Clark,
Feiner, &Viehs, 2015;AlHammadi&Nobanee, 2019). This study was conducted in order to
determine the effectiveness of strategic financial management in putting up in corporation
business. The research design used to gather data is the descriptive method of research using the
Likert- type scale as the main tool. Likert- type scale is a psychometric scale commonly involves
in research that employs questionnaires it is the most widely used approach to scaling responses
in survey research. This study also presented some ideas about how to implement strategic
financial management in corporation business. The result of this study were showed close
because of the virus, there are other way on how the business continue and financial management
is one of the strategy for business owners to survive. The respondents were chosen based on their
experience on how their business survived during this pandemic. The respondents were agreed
that strategic financial management provides good impact in corporation business.
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ACKNOWLEDGEMENT
We are extremely grateful to God almighty our creator, our strong pillar, our source of
inspiration, wisdom, knowledge, and understanding. He has been the source of our strength
throughout this research. We are also thankful to our Teachers especially to our project adviser
Mr.Roilan P. Lopez for their invaluable advice, continuous support, and patience throughout
this research. Their immense knowledge and plentiful experience have encouraged us in all the
time of our academic research and daily lives.
We would want to thank also our parents for their financial support, whom without their
encouragement this study would have not been possible. To our classmates and friends, for all
their help and advice which was really influential in shaping our experiment methods and
critiquing our results. And everyone who provide valuable contributions in the accomplishments
of this study, deepest thank to all of you, May the God BlessUs All!
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TABLE OF CONTENTS
Title Page…………………………………………………………………………………………i
Abstract…………………………………………………………………………………………..ii
Acknowledgement……………………………………………………………………………….iii
Table of Contents………………………………………………………………………………..iv
Chapter 1
Background of the Study and Literature Review
Introduction………………………………………………………………………………………1
Review of Related Literature……………………………………………………………………..2
Conceptual Framework……………………………………………………………………………8
Research Paradigm………………………………………………………………………………..9
Statement of the Problem…..……………………………………………………………………11
Hypothesis………………………………………………………………………………………..12
Scope and Delimitation…………………………………………………………………………..12
Significance of the Study………………………………………………………………………...12
Definition Of Terms……………………………………………………………………………...13
Chapter 2
Research Methodology
Research Design………………………………………………………………………………….15
Participants of the Study…………………………………………………………………………16
Data Gathering Tool……………………………………………………………………………..16
Reliability and Validity…………………………………………………………………………..17
Administration of Instrument…………………………………………………………………….17
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Procedure of Analysis……………………………………………………………………………18
Chapter 3
Presentation, Interpretation, and Analysis of Data
Chapter 4
Conclusion……………………………………………………………………………………….34
Recommendation………………………………………………………………………………...36
References………………………………………………………………………………………..37
Curriculum Vitae………………………………………………………………………………...39
Appendices……………………………………………………………………………………….44
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LIST OF FIGURE
Figure 1. Research Paradigm……………………………………………………………………9
Figure 2. Setting Financial Planning to generate profit………………………………………….19
Figure 3.KeepingCorporation Financial Organized……………………………………………20
Figure 4.. Initiate action towards accomplishment of desired Objectives………………………21
Figure 5. Controlling Financial Transactions……………………………………………………22
Figure 6. Importance of Strategic Financial Management to run a Business………………...23
Figure 7.Importance of Managerial skills to develop Corporation strengths………………..24
Figure 8. Good impact dueto appropriate actions of manager………………………………25
Figure 9. Achieving Corporation growth due to managerial skills…………………………….26
Figure 10. Obtaining Corporation success due to managerial skills…………………………..27
Figure 11. Well handling of financing decisions by manager…………………………………..28
Figure 12. Corporations effectively avoided bad debt loses………………………………….29
Figure 13.Having enough investments to run the corporation productively…………………30
Figure 14.Having enough savings for the future of the corporation…………………………….31
Figure 15.Having enough funds for corporation grow………………………………………….32
Figure 16.Corporation avoided business closure……………………………………………….33

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LIST OF TABLE
Table 1. Participants of the Study………………………………………………………………16
Table2. Strategic Financial Management……………………………………………………….44
Table 3. Managerial Skills………………………………………………………………………44
Table 4. Challenges Experienced of Corporation……………………………………………….45

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BACKGROUND OF THE STUDY AND LITERATURE REVIEW
INTRODUCTION
The main reasons for corporate failure are alleged to have been a lack of fiscal
estimating, indispensable political rectitude, and limited subsidizing openness, as well as a
shortage of resources, abnormality advancement, tiny vital and monetary presumption, pointless
corrected resource organization, and key administration. However, by relating potential concerns
to financial decisions and primary value drivers, such as speculation scheduling, capital cost, the
industry around the world organization, economic output, and resource returns, the institution's
presentation, as well as its required command structure the methodology, can be redesigned
(Alkaabi, 2019).
A corporation is a legal entity that is separate and distinct from its owners. Under law,
corporations possess many of the same rights and responsibilities as individuals. They can enter
contracts, loan and borrow money, sue and be sued, hire employees, own assets, and pay taxes,
(The Investopedia Team, Updated 2021.)
Improper financial management practices have proven to be a main cause of failures in
companies in terms of financial difficulty, mismanagements of fund and shortage of long-term
funds to meet the operating cost and capital expenditure (Brigham &Ehrhardt, 2010).
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Generally, as Al Nuaimi and Nobanee (2019), show in their collective research.
Corporate sustainability reporting has a strong impact on corporate financial growth in general.
All in all, current evidence shows a clear positive impact of financial management on the ability
to promote all types of sustainability.
Using short term non-sustainable tactics can have a significant impact on the value of an
organization. These tactics include overpricing the return on equity by over-leveraging, early
inclusion of sales, late inclusion and extreme cutting of costs (Barton and Wiseman, 2014; Chen
et al., 2015; Greenfield, 2011; Laverty, 2004, as cited in Strenad& Kennelly, 2017).
Furthermore, some managers that focus on short term success resort to unethical business
practices such as inflating profits (Dallas, 2012; Nevins et al., 2006, as cited in Strenad&
Kennelly, 2017).
The effects of such practices are raising serious concerns and are one of the key reasons
why managers are heading towards sustainable financial management strategies to maximize the
market capitalization of the organization rather than focusing on quarterly profits (Strenad&
Kennelly, 2017).
This research aimed to find the effectiveness of strategic financial management in a
corporation. And also, intended to determine the common financial management used in an
organization, and find how the Entrepreneur used financial management in their business.
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Financial management had always been one of the most critically evaluated concepts in
business and finance. The role of finance and monetary allocation has always been regarded as
pilot factor that accelerates or decelerates the value or growth of business operations and
subsequently its progress (Alkaabi&Nobanee, 2019).
Finance represents the life of a business. However, like many resources, finances are
often limited, but business wants are usually unlimited. This, therefore, means that it is essential
for a business to manage its finances effectively. Financial management endeavors to minimize
the cost of fiancés and thus, ensures there is sufficient flow of funds in the business (Ameer&
Othman, 2011).
Financial management strategy is a process for identification, collection, selection and
analysis of the financial data for the assistance to a team of management for the strategic
decisions and effectiveness of the organizational assessment. The financial management strategy
has the role of establishing that the organization finances its operations cost to attain its goal and
profit maximization, Delkhosh and Mousavi (2016).
Financial management of the organization has taken a shift towards future crisis-resistant
sustainable financial acts and functions. The knowledge over the green practices of investment,
finances, taxation, and the associated risk of sustainability not only assures financial stability but
also results in the implementation of business models, policies, and social projects that focus
both the shareholders’ values as well as stakeholders’ values (Christofi et al, 2012).
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The financial management strategy is not only to manage the flow of funds in the
organization but to align them with the good intention to meet the goals and objectives of the
firm to maximize the financial wealth of business owners. Delkhosh andMousavi (2016).
Furthermore, to achieve sustainable financial performance and growth, regulations must
be in place to manage financial reserves. These regulations encompass several aspects such as
overseeing purchases made on account, increasing solvency, and the quantity of equity over
time. In addition to, in enhancing the structure and strategies of working capital management, the
additional cost and effort associated with managing sustainable financial sources are
compensated by the boost in revenue and decrease in leftover inventory. Therefore, managers
ought to be highly involved in these policies for the firm to operate and maintain sustainable
conditions (Ahmed &Nobanee, 2019).
Sustainable financial management approaches are advantageous to the organization as it
can enhance its performance and productivity, lower costs and improves their relationships with
stakeholders (Atz, Holt, Douglas, & Whelan, 2019).
In strategic financial management, three types of management are considered:
investment strategy management, the financial provision and ultimately the profitability and the
optimal combination of these three strategy kinds and its optimum management, will encompass
the financial success of an organization (Delkhosh&Mousavi, 2016).

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Financial management in entrepreneurship entails planning, organizing, controlling, and
directing all financial activities, such as the utilization of funds and procurement of funds of the
enterprise in a way that supports the growth of a business (Juneja, n.d.).
Financial management assists organizations in financial planning, acquisition, and
allocation of funds, enhancing an organization's profitability and overall value while promoting
economic stability. Furthermore, financial management is used to maximize the value of stock
prices, while in private companies it is used to maximize the market value of owners' equity
(Delkhosh&Mousavi, 2016).
Such practices improve the overall financials of the firm leading to a long term value
addition to the vision and mission of the firm. The control and monitoring of the strategies plays
a vital role, it is observed that companies with unmonitored and uncontrolled strategy
implementation have resulted in failure (Delkhosh&Mousavi, 2016).
In strategic financial management, three types of management are considered: investment
strategy management, the financial provision and ultimately the profitability and the optimal
combination of these three strategy kinds and its optimum management, will encompass the
financial success of an organization (Delkhosh&Mousavi, 2016).
Financial management in entrepreneurship entails planning, organizing, controlling, and
directing all financial activities, such as the utilization of funds and procurement of funds of the
enterprise in a way that supports the growth of a business (Juneja, n.d.).

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Financial management assists organizations in financial planning, acquisition, and
allocation of funds, enhancing an organization's profitability and overall value while promoting
economic stability. Furthermore, financial management is used to maximize the value of stock
prices, while in private companies it is used to maximize the market value of owners' equity
(Delkhosh&Mousavi, 2016).
Such practices improve the overall financials of the firm leading to a long term value
addition to the vision and mission of the firm. The control and monitoring of the strategies plays
a vital role, it is observed that companies with unmonitored and uncontrolled strategy
implementation have resulted in failure (Delkhosh&Mousavi, 2016). Financial Management
practice is termed as a discipline that deals with how organizations make decisions relating to
various financial aspects and the instruments used (Lasher, 2010).
According to Brinckmann et al. (2011), financial management practice is the process of
acquiring financial resources and measures to enhance the financial performance in firms. Byoun
(2010) defined financial management practices as all aspects dealing with money circulations
and money control in all business transactions.
It relates to the arrangements and optimal use of financial resources for current and future
opportunities in order to improve financial operations. Typical financial management practices
employed by organizations include; cash management, capital budgeting decisions, financial
analysis and forecasting and portfolio management (Marembo, 2012).Financial Management

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practice is termed as a discipline that deals with how organizations make decisions relating to
various financial aspects and the instruments used (Lasher, 2010).
According to Brinckmann et al. (2011), financial management practice is the process of
acquiring financial resources and measures to enhance the financial performance in firms. Byoun
(2010) defined financial management practices as all aspects dealing with money circulations
and money control in all business transactions.
It relates to the arrangements and optimal use of financial resources for current and
future opportunities in order to improve financial operations. Typical financial management
practices employed by organizations include; cash management, capital budgeting decisions,
financial analysis and forecasting and portfolio management (Marembo, 2012).
The importance that the financial management practices have on organization is
imperative as most challenges facing companies may be prevented by proper financial
management practices (Uluyol, 2013).

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CONCEPTUAL FRAMEWORK
Management accounting has been at the heart of long-term corporate growth and
development. Entrepreneurship and moral behavior are inextricably linked. Entrepreneurial skills
such as originality, innovation, and sensitivity are thought to be related to the qualities needed to
make moral decisions. (Ahmed, 2010)
Because financial administration is such a delicate sector, almost every firm has a distinct
department for it, staffed by a committed, professional, and competent team, taking the
appropriate financial planning and competent team, taking the appropriate financial planning
decisions promptly leads to long-term business sustainability and progress. (Alkaabi, 2019)
Researchers used survey to find the impact of financial planning and analyses the
effectiveness of strategic financial management on a corporation. Statistical method was done in
analyzing and interpreting the data gathered.

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The research paradigm is hereby presented using the IPO model.
INPUTS
 Strategic financial management

 Managerial skills
 Challenges experienced of
corporation
PROCESS
 Questionnaire
 Checklist
OUTPUTS
 Encouraged Corporation owners

to use financial management and
financial planning on their
organization.
 Utilized financial management on
Organization of business
 Improved Corporation
 Succeed business
Figure 1. Research Paradigm

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This research showed the effectiveness of strategic financial management on a
corporation. The inputs of this study were the Finance manager handles Investment decisions,
financing decisions, and asset management decisions. This research also included the
classification on finance managers such as credit managers, cash managers, and finance
managers. It also included the element of financial management strategy which were planning,
controlling, organizing and directing.
Data gathered through questionnaires to find different ways of strategic financial
management on corporation business, and checklist was the main tool in gathering data.
Encouraged corporation business owners to apply different financial management and financial
planning on their business in able for it to grow and succeed.
This also aimed to provide outputs in putting up strategic financial management in a
corporation, these may encouraged corporation owners to use financial management and
financial planning on their organization, utilized financial management on Organization of
business, improved corporation, and succeed business.

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STATEMENT OF THE PROBLEM
This research aimed to find the effectiveness of strategic financial management in a corporation
and included to answer the following questions:
1. In a corporation, how does strategic financial management related to financial:
 Planning
 Organizing
 Controlling
 Directing
2. How does manager handles financial:
 Planning
 Organizing
 Controlling
 Directing
3. What are the challenges of the corporation in financial:
 Planning
 Organizing
 Controlling
 Directing
4. Is there significant impact in the success of corporation business with the application of
strategic financial management and financial planning?
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HYPOTHESIS
There is no significant impact in the success of corporation business with the application
of strategic financial management and financial planning.
SCOPE AND DELIMITATION
The study was focused on the effectiveness of strategic financial management on the
corporation business. This study was conducted at Gapan City, Nueva Ecija, with the duration
fromSeptember 2021 to January 2022. The respondents were the owners of the running business
corporation .Checklist was used as the instrument to gather data. Significant findings
collectedwith the use of survey questionnaire were distributed randomly to answer the given
statements regarding the strategic financial management in a corporation.
SIGNIFICANCE OF THE STUDY
The beneficiaries of this study were the owners of a corporation business and ABM
students, because this study identified the common financial management and how owners of
corporation used financial management to further improve their business.
This also served as guide for the ABM students who plan to have their business in the
future, in that way they can apply what they have learned to succeed in their business.
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DEFINITION OF TERMS
ABM Students -this refers to the senior highschool studentswho chose Accountancy Business
and Management strand as their preparation for their college degree. They are the researchers of
this particular study.
Controlling- this refers to the task wherein setting of standard of performance are made and
comparing it with the actual performance of the individual or groups.
Corporation - this refers to a legal entity that is separate and distinct from its owners. Under
law, corporations possess many of the same rights and responsibilities as individuals. This are
refers to the type of business included in this study
Directing -this refers to the process of instructing, guiding and inspiring human factors in the
organization to achieved organization objectives.
Entrepreneur - this refers to a person who undertakes the organization and ownership of a
business with intent of making a profit. They were the respondents of this research study.
Entrepreneurship - this refers to the process of getting into and operating your own business.
Finance - this refers to a term for matters regarding the management, creation, and study of
money and investments.
Financial management - this refers to the process of acquiring financial resources and measures
to enhance the financial performance in firms.
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Financial Planning -this refers to the process of getting your finances organized.
Fiscal management - this refers to the process of keeping an organization running efficiently
within its allotted budget.
Organization - this refers to a group of people who work together, like a neighborhood
association, a charity, a union, or a corporation.
Organizing - this refers to the act of transforming all the plans into realization and it involves
the assigning and coordination of specific task.
Planning - this refers to the primary function of management that involves the setting of or
organizational goals, establishing useful strategies.
Strategic financial management -this refers to the process of planning, directing and
controlling financial resources of an organization.
Strategy -this refers to the formulation, review and selection of strategies to achieved strategic
objectives.
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CHAPTER 2
RESEARCH METHODOLOGY
This research methodology provides the research design and the tools that are administered by
the researchers. Furthermore, this identifies the participants of the study, its reliability and
validity, also the research procedure on how researchers gather and obtain data.
Research Design
Description method of research is employed in this study with likert-type scale of the checklist as
the main tool to gather data. Interviews and observations were used as data collection method to
validate and confirm their answer to give valuable findings. Since descriptive research is mainly
concerned with characteristics or state of affairs through participants' views or their natural
states, it focuses mostly on qualitative descriptions (Fraenkel, Wallen& Hyun, 2011). These
kinds of descriptions can be achieved through observation, survey, interview, document and
other sources of qualitative data (Gravetter&Forzano, 2012;Koh& Owen, 2000).
Participants of the Study

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The participants of the study were the corporation business owners in Gapan City, Nueva Ecija.
Participants Total
Male Female
3 12 15
Data Gathering Tool
The researchers used survey questionnaire and checklist in gathering data for the research. It
consists of written medium to gather responses from the research subjects. The survey consists of
three (3) parts with five (5) items focuses on strategic financial management and financial
planning of business corporation which includes; financial planning, organizing, controlling, and
directing. The respondents were offered five options for a response which is strongly agree,
agree, neutral, disagree, and strongly disagree into random corporation business owners at Gapan
City, Nueva Ecija to answer the following written statement that correspond if that entrepreneur
is effectively using strategic financial management and financial planning in their business
corporation.
Reliability and Validity of the Instrument

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To guarantee that the data gathered were valid, the survey questionnaire and checklist was
subjected to check-rechecked method in which the researchers sought the assistance of the
research admin. The reliability of the instrument was subjected to a test-retest to 12 ABM
students of Maruhat NHS, Division of Gapan City who did not belong to the participants of the
study.
Administration of Instruments
The survey questionnaire and checklist were processing administered by the researchers for the
permission from the research adviser .Printed copies of the questionnaire that contain inquiries of
the study and its extent were distributed to the participants.The objectives of the study were
explained to the participants. Close monitoring of the participants were undertaken while
answering the item-statements.
The data gathering will supervise personally by the researchers after the permission from the
research adviser. Printed copies of the questionnaire contain the inquiries of the study that
indicates the extent of the study's accuracy and reliability from the participants' answers, that
measures and analyzes the data for them to understand the importance of what the researchers
want to impart.
Procedure of Analysis
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The following limits andcategories were used in the Likert-type scale of the checklist.
Value Degree
5 Strongly Agree
4 Agree
3 Neutral
2 Disagree
1 Strongly Disagree
The portions of distribution andto come up with the verbal descriptions of item statements
frequency distribution is employed.
Therefore, the hypothesis “there is no significant impact on the success of corporation business
through the application of strategic financial management and financial planning" was tested
using frequency distribution and percentage.
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CHAPTER III
PRESENTATION, INTERPRETATION, AND ANALYSIS OF DATA
Figure 2 presents the comparison on frequency distribution and percentage of respondents who
answered question 1 for Strategic Financial Management.
13%
Strongly Agree
Agree
Neutral
87% Disagree
Strongly disagree
Figure 2.Setting Financial Planning to generate profit
The figure above shows that 13 or equivalent to 87% of the respondent are strongly agree and 2
or equivalent to 13% of the respondents are agree that setting financial planning help
corporation to generate more profit.

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53% 47% Strongly Agree

Agree
Neutral
Disagree
Strongly disagree
Figure 3.KeepingCorporation Financial Organized
The figure above shows that 7 or equivalent to 47% of the respondents are strongly agree
while 8 or equivalents to 53% of the respondents are agree that corporation should keep
financial organized.
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13%
Strongly Agree
Agree
Neutral
87% Disagree
Strongly disagree
Figure 4.Initiate action towards accomplishment of desired Objectives
The figure above shows that 13 of equivalent of 87% of the respondents are strongly agree while
2 or equivalent to 13% of the respondents are agree that initiate action towards accomplishments
of desired objectives makes from directing the corporation.

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33%
Strongly Agree
Agree
67% Neutral
Disagree
Strongly disagree
Figure 5. Controlling Financial Transactions
The figure above shows that 10 or equivalent to 67% of the respondent are strongly agree while
5 or equivalent to 33% of the respondents are agree that corporation should control their
financial transactions.
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33%
Strongly Agree
Agree
67% Neutral
Disagree
Strongly disagree
Figure 6.Importance of Strategic Financial Management to run a Business
The figure above shows that 10 or equivalents to 67% or the respondents are strongly agree
while 5 or equivalent of 33% of the respondents are agree that strategic financial management is
important to run a corporation.

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answered question 1 for Managerial Skills.
47% 53%
Strongly Agree
Agree
Neutral
Disagree
Strongly disagree
Figure 7.Importance ofManagerial skills to develop Corporation strengths
The figure above shows that 8 or equivalent of 53% of the respondents are strongly agree
while 7 or equivalent of 47% of the respondents are agree that managerial skills is necessary to
develop corporation strengths.

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47% 53%
Strongly Agree
Agree
Neutral
Disagree
Strongly disagree
Figure 8.Good impact dueto appropriate actions of manager
The figure above shows that 8 or equivalent to 53% of the respondents are strongly agree while 7
or equivalent to 47% of the respondents are agree that good impact are due to appropriate actions
from the manager.

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6%
47% Strongly Agree

47% Agree
Neutral
Disagree
Strongly disagree
Figure 9.Achieving Corporation growth due to managerial skills
while 7 or equivalent to 47% of the respondents are agree and 1 or equivalent to 6% of the
respondents answer neutral that corporation growth can be achieve due to managerial skills.
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20%
Strongly Agree
Agree
Neutral
80% Disagree
Strongly disagree
Figure 10.Obtaining Corporation success due to managerial skills
The figure above shows that 12 or equivalent to 80% of the respondents are strongly agree while
3 or equivalent to 20% of the respondents are agree that in order to obtain corporation success,
the manager should skilled enough.

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13%
Strongly Agree
Agree
Neutral
87% Disagree
Strongly disagree
Figure 11.Well handling of financing decisions by manager
while 2 or equivalent to 13% of the respondents are agree that well handling of financing
decisions by manager can make the corporation financially stable.

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answered question 1 for Challenges Experienced of Corporation.
7%
Strongly Agree
Agree
Neutral
93% Disagree
Strongly disagree
Figure 12.Corporations effectively avoided bad debt loses
The figure above shows that 1 or equivalent to 7% of the respondent strongly agree while 14 or
equivalent to 93% of the respondents are agree that corporations are effectively avoided bad
debt loses.
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40% Strongly Agree

60% Agree
Neutral
Disagree
Strongly disagree
Figure 13.Having enough investments to run the corporation productively
The figure above shows that 9 or equivalent to 60% of the respondents are strongly agree while
6 or equivalent of 40% or the respondent are agree that having enough investments is
importantto run the corporation productively.

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27%
Strongly Agree
Agree
73% Neutral
Disagree
Strongly disagree
Figure 14.Having enough savings for the future of the corporation
The figure above shows that 11 or equivalent to 73% of the respondent are strongly
agree while 4 or equivalent to 27% of the respondents are agree that having enough savings for
the future of the corporation makes the corporation have its place in the market.
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53% 47% Strongly Agree

Agree
Neutral
Disagree
Strongly disagree
Figure 15.Having enough funds for corporation grow
The figure above shows that 7 or the equivalent to 47% of the respondent are strongly
agree while 8 or equivalent to 53% of the respondent are agree that having enough funds is
important for corporation grow.

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40% Strongly Agree

60% Agree
Neutral
Disagree
Strongly disagree
Figure 16.Corporation avoided business closure
The figure above shows that 9 or equivalent to 60% of the respondent are strongly agree while 6
or equivalent to 40% of the respondent are agree that corporation are avoided business closure.
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CONCLUSION
Based from the findings of the study, strategic financial management has a great
impact in putting up a corporation business. Regardless of the Corona Virus 2019 pandemic
corporation business owners still strive to survive without giving up their business. The findings
from this study revealed from the answers to the question “how does strategic financial
management helps in putting up a corporation business?” the findings showed that one of the
best ways to start a corporation business is to have enough investments and financially planned
to be financially stable to have their business place in the market. It is also revealed that strategic
financial management guides future business owners in starting their own business.The results of
this study confirmed the importance of collective effect of financial management practices in
working capital management, investment managing, business decisions has a moderate positive
relationship between financial management practices and financial performance (Njagi and
Kariuli, 2017). Furthermore, managerial skills are a factor to determine business strengths and
business growth that make good impact. The management skills will determine how the
independent variable affects financial performance. To direct the business financial management
aids business leaders with a chance if there are useful management skills and methods, the
independent variables will positively lead to improved financial performance (Addo, 2017).The
findings of the study also states that the lack of knowledge on financial management and funds to
continue corporation business without considering the use of financial management commonly
experience a low-rate survival and challenges faced by business owners. The results of the study
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confirmed that having enough funds are necessary for corporation to grow and have its savings
for the future of the business, also this implies that the corporation are effectively avoided bad
debt loses which will tend to corporation bankruptcy.

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RECOMMENDATION
Based on the study conducted the following recommendation are hereby drawn.
1. For the Corporation Owners
Apply strategic Financial Management on your business to organized your money and be
financially stable.
2. For the Teachers
Continue offering the ABM strand to conduct different kind of research relevant in financial
management.
3. For the Future Researchers
Pursue conducting research about business to help the business owners or entrepreneurs find
some ideas on how they succeed in their business.

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REFERENCES
DEMBA, (2013). Financial Management Practices and Financial Performance of Service

Companies in Somalia,. Vol. 10, No. 14, 2019
Clark, Feiner&Viehs, (2015); Al Hamanadi&Nobanee, (2019). Strategic Financial Management

and Sustainability
Alkaabi, (2019). Enhancing Financial Decision Making By Sustainability Integration
Al Nuaimi and Nobanee, (2019). Critical Reason for Financial Management to Promote Positive
Sustainability
Barton and Wiseman, (2014); Chen et al., (2015); Greenfield, (2011); Laverty, (2004), as cited in
Strenad& Kennelly, (2017). Strategic Financial Management and Sustainability
Dallas, (2012); Nevins et al., (2006), as cited in Strenad& Kennelly, (2017). Strategic Financial
Management and Sustainability
Strenad& Kennelly, (2017). Strategic Financial management and Sustainability
Alkaabi&Nobanee, (2019). Entrepreneurship and Sustainable Financial management
Ahmed &Nobanee, (2019). Strategic Financial management and Sustainabiity
Atz, Holt, Douglas, & Whelan, (2019), Strategic Financial Management and Sustainability
Juneja, n, d. Entrepreneurship and Sustainable Financial management

Region III
Njagi and Kariuki, (2017). Financial Management Practices and Financial Performance of
Service Companies in Somalia,. Vol. 10, No. 4, 2019
Addo, (2017). Financial Management Practices and Financial Performance of Service

Companies in Somalia,. Vol. 10, No. 4, 2019
Region III
CURRICULUM VITAE
Name: Eric DG. Mendoza
Age: 18
Sex: Male
Birthdate: January 14, 2003
Address:Macabaklay, Gapan City
Facebook Account: Eric De Guzman
Religion: Catholic
Civil Status: Single
Citizenship: Filipino
Mother’s Name:Aurea De Guzman
Occupation: Street Sweeper
Father’s Name: Ricky Mendoza
Occupation: N/A
Educational Attainment:
Elementary: St. Joseph Elementary School
2015- 2016
Secondary: Maruhat National High School
Junior High School 2019- 2020
Senior High School 2021- 2022
Skills: Playing Volleyball
Ambition: To be a Seaman
Region III
CURRICULUM VITAE
Name: Mike L. Vargas
Age: 18
Sex: Male
Birthdate: May 14, 2003
Address: Maruhat, Gapan City
Facebook Account: Mike Vargas
Religion: Catholic
Mother’s Name: Amelia L. Vargas
Occupation: Sewer
Father’s Name: Nolly SM. Vargas
Occupation: Barangay Police
Elementary: Bungo Elementary School
Bungo, Gapan City
2015- 2016
Secondary:Maruhat National High School
Skills: Drawing, Painting
Ambition: To be a Man of Success
Region III
CURRICULUM VITAE
Name: Jomay G. Barredo
Age: 18
Sex: Female
Birthdate: April 17, 2003
Address:Macaabklay, Gapan City
Facebook Account:JomayBarredo
Religion: Born Again
Citizenship:Filipino
Mother’s Name: Leonora Barredo
Occupation: Housewife
Father’s Name: Eduardo Barredo
Occupation: Farmer
Elementary:: St. Joseph Elementary School
2015- 2016
Skills: Playing Chess, Volleyball
Ambition: To be a Successful Business Woman and a Flight Attendant
Region III
CURRICULUM VITAE
Name: Jessica DG. Hernandez
Age: 19
Sex: Female
Birthdate: July 7, 2002
Address: Macabaklay, Gapan City
Facebook Account: Jesssica De Guzman Hernandez
Religion: Catholic
Citizenship: Filipino Mother’s Name: Raquel D. Hernandez
Father’s Name: Jesus Hernandez
Occupation: Farmer
2015- 2016
Skills: Dancing, Singing, Acting
Ambition: To be a Successful Business Woman
Region III
CURRICULUM VITAE
Name: Hanelyn H. Mendoza
Age: 18
Sex: Female
Birthdate: July 14 2003
Address:Macabaklay, Gapan City
Facebook Account:Hanelyn Mendoza
Religion: Catholic
Mother’s Name:Rosana H. Hernandez
Father’s Name: Alejandro D. Mendoza
Occupation: Farmer
2015- 2016
Skills: Dancing, Painting, Singing
Ambition: To be a Successful Business Woman
Region III
APPENDICES
Strategic Financial Management: Its Impact In Putting Up a Corporation
QUESTIONS Strongly Agree Neutral Disagree Strongly

Agree Disagree
Strategic Financial Management
1. Do you set your financial to 13 87% 2 13%
generate more profit?
2. Do you keep your corporation 7 47% 8 53%
financial organized?
3. Do you prefer initiate action 13 87% 2 13%
towards accomplishment of
desired objectives?
4. Do you control your financial 10 67% 5 33%
transactions?
5. Does strategic financial 10 67% 5 33%
management important to run a
corporation?
Managerial Skills
1. Does managerial skills 8 53% 7 47%
necessary to develop business
strengths?
2. Does the action of the manager 8 53% 7 47%
effectively provide good
impact?
3. Does managerial skills a factor 7 47% 7 47% 1 6%
for achieving business growth?
4. Does the manager obtaining 12 80% 3 20%
Region III
corporation success?
5. Does the manager handles 13 87% 2 13%
financing decisions well?
Challenges Experienced of Corporation
1. Do the corporation effectively 1 7% 14 93%
avoid bad debt loses?
2. Do you have enough 9 60% 6 40%
investments to run your
corporation productively?
3. Are your savings enough for 11 73% 4 27%
the future of the corporation?
4. Do the corporation have 7 47% 8 53%
enough funds to grow?
5. Do the corporation avoided 9 60% 6 40%
business closure?

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Republic of the Philippines

EFFECTIVENESS OF STRATEGIC FINANCIAL

Mendoza, Eric D.G.

Roilan P. Lopez PhD

Maruhat National High School

time of our academic research and daily lives.

Figure 1. Research Paradigm……………………………………………………………………9

Figure 2. Setting Financial Planning to generate profit………………………………………….19

Figure 3.KeepingCorporation Financial Organized……………………………………………20

Figure 4.. Initiate action towards accomplishment of desired Objectives………………………21

Figure 5. Controlling Financial Transactions……………………………………………………22

Figure 6. Importance of Strategic Financial Management to run a Business………………...23

Figure 7.Importance of Managerial skills to develop Corporation strengths………………..24

Figure 8. Good impact dueto appropriate actions of manager………………………………25

Figure 9. Achieving Corporation growth due to managerial skills…………………………….26

Figure 10. Obtaining Corporation success due to managerial skills…………………………..27

Figure 11. Well handling of financing decisions by manager…………………………………..28

Figure 12. Corporations effectively avoided bad debt loses………………………………….29

Figure 13.Having enough investments to run the corporation productively…………………30

Figure 14.Having enough savings for the future of the corporation…………………………….31

Figure 15.Having enough funds for corporation grow………………………………………….32

Figure 16.Corporation avoided business closure……………………………………………….33

Table 1. Participants of the Study………………………………………………………………16

Table2. Strategic Financial Management……………………………………………………….44

Table 3. Managerial Skills………………………………………………………………………44

Table 4. Challenges Experienced of Corporation……………………………………………….45

BACKGROUND OF THE STUDY AND LITERATURE REVIEW

estimating, indispensable political rectitude, and limited subsidizing openness, as well as a

(The Investopedia Team, Updated 2021.)

Improper financial management practices have proven to be a main cause of failures in

companies in terms of financial difficulty, mismanagements of fund and shortage of long-term

Generally, as Al Nuaimi and Nobanee (2019), show in their collective research.

to promote all types of sustainability.

This research aimed to find the effectiveness of strategic financial management in a

subsequently its progress (Alkaabi&Nobanee, 2019).

Financial management strategy is a process for identification, collection, selection and

profit maximization, Delkhosh and Mousavi (2016).

Furthermore, to achieve sustainable financial performance and growth, regulations must

conditions (Ahmed &Nobanee, 2019).

Sustainable financial management approaches are advantageous to the organization as it

stakeholders (Atz, Holt, Douglas, & Whelan, 2019).

In strategic financial management, three types of management are considered:

the financial success of an organization (Delkhosh&Mousavi, 2016).

Financial management in entrepreneurship entails planning, organizing, controlling, and

enterprise in a way that supports the growth of a business (Juneja, n.d.).

Financial management assists organizations in financial planning, acquisition, and

implementation have resulted in failure (Delkhosh&Mousavi, 2016).

In strategic financial management, three types of management are considered: investment

financial success of an organization (Delkhosh&Mousavi, 2016).

Financial management in entrepreneurship entails planning, organizing, controlling, and

enterprise in a way that supports the growth of a business (Juneja, n.d.).

Financial management assists organizations in financial planning, acquisition, and

implementation have resulted in failure (Delkhosh&Mousavi, 2016). Financial Management

various financial aspects and the instruments used (Lasher, 2010).

According to Brinckmann et al. (2011), financial management practice is the process of

and money control in all business transactions.

opportunities in order to improve financial operations. Typical financial management practices

employed by organizations include; cash management, capital budgeting decisions, financial