Financial Decision-Making in Corporate Management: A Systematic Literature Review

Abstract

Financial decision-making is a fundamental aspect of corporate management, directly influencing firm performance, risk exposure, and long-term value creation. This study aims to systematically review the existing literature on financial decision-making within corporate settings to synthesize prevailing themes, theoretical frameworks, and research gaps. Utilizing the PRISMA-guided Systematic Literature Review (SLR) method, 68 peer-reviewed journal articles published between 2000 and 2024 were analyzed from major academic databases such as Scopus, Web of Science, and ScienceDirect. Thematic analysis identified five dominant areas: capital structure decisions, investment appraisal, dividend policy, working capital management, and the integration of behavioral finance and ESG factors. Results indicate a theoretical evolution from traditional models (e.g., trade-off, pecking order) toward interdisciplinary approaches incorporating behavioral and technological perspectives. The study also reveals underexplored contexts in emerging economies and limited research integrating fintech tools into corporate finance practices. This review contributes to the literature by mapping the intellectual landscape of financial decision-making and providing a structured agenda for future research.