The impact of financial management on increasing productivity and profitability of organizations
Аннотация
The goal of this study was to analyze the strategic impact of financial management towards organizational productivity and profitability improvement. The present study is implemented in terms of intention and descriptive-survey in terms of data type. The required data were collected during 2023-2024, using a standard questionnaire from a sample of 250 managers and Uzbek financial experts of organizations and analyzed through structural equation modeling in Smart-PLS software. The findings showed that financial management has positive and significant effects on all the performance measures. Specifically, planning with an influence coefficient of 0.297 showed the strongest relationship with organizational productivity. Investment analysis with a coefficient of 0.267, nonetheless, had the strongest effect on profitability. Budget control also showed positive and significant effects on both variables of productivity (0.231) and profitability (0.198). The obtained results reveal the core role of the financial management system as a strategic tool in achieving organizational performance to the fullest. The findings of this study can provide a proper theoretical rationale for managers to make logical choices and pave the way for developing better financial policies in organizations.