The Impact of Financial Planning, Budgeting Practices, and Project Cash Flow Management on Organizational Financial Performance

Abstract

This study examines the impact of financial planning, budgeting practices, and project cash flow management on organizational financial performance. Given the critical role of financial management practices in shaping the success of organizations, this research aims to explore how these factors influence financial outcomes. Using a structural equation modeling (SEM) approach, the study analyzes data collected from organizations across various sectors. The results reveal that all three variables—financial planning, budgeting practices, and project cash flow management—have a statistically significant and positive effect on organizational financial performance. Specifically, financial planning has a moderate impact, budgeting practices exhibit a stronger effect, and project cash flow management has the most substantial influence. The findings of this thesis underlie the importance of comprehensive financial management strategies for achieving improved financial outcomes and provide practical insights for organizations looking to improve their financial performance. The study adds to the literature by demonstrating the interconnectedness of organizational success and financial practices and the implications to both practitioners and researchers in financial management.