The impact of financial management on increasing productivity and profitability of organizations

Economic Annals-XXI: Volume 213, Issue (1-2), Pages: 77-82

Citation information
Nasirov, E., Raimjanova, M., Mamatov, B., Alikulov, M., Shaislamova, N., & Khomitov, K. (2025). The impact of financial management on increasing productivity and profitability of organizations. Economic Annals-XXI, 213(1-2), 77-82. doi: https://doi.org/10.21003/ea.V213-08

Egamkul Nasirov
D.Sc. (Economic),
Department of Valuation and Investments,
Tashkent State University of Economics
49 Islom Karimov Str., Tashkent, 100066, Uzbekistan
e.nasirov@tsue.uz
ORCID ID: https://orcid.org/0000-0002-9355-1973

Madina Raimjanova
PhD (Economic),
Department of Valuation and Investments,
Tashkent State University of Economics
49 Islom Karimov Str., Tashkent, 100066, Uzbekistan
m.raimjanova@tsue.uz
ORCID ID: https://orcid.org/0000-0001-8942-5723

Bakhadir Mamatov
D.Sc. (Economic),
Department of Valuation and Investments,
Tashkent State University of Economics
49 Islom Karimov Str., Tashkent, 100066, Uzbekistan
b.mamatov@tsue.uz
ORCID ID: https://orcid.org/0009-0004-6227-5103

Mekhmonali Alikulov
PhD (Economic),
Department of Valuation and Investments,
Tashkent State University of Economics
49 Islom Karimov Str., Tashkent, 100066, Uzbekistan
m.alikulov@tsue.uz
ORCID ID: https://orcid.org/0000-0001-5981-885X

Nargiza Shaislamova
PhD (Economic),
Department of Valuation and Investments,
Tashkent State University of Economics
49 Islom Karimov Str., Tashkent, 100066, Uzbekistan
n.shoislamova@tsue.uz
ORCID ID: https://orcid.org/0000-0002-7686-8995

Komiljon Khomitov
D.Sc. (Economic),
Department of Valuation and Investments,
Tashkent State University of Economics
49 Islom Karimov Str., Tashkent, 100066, Uzbekistan
k.khomitov@tsue.uz
ORCID ID: https://orcid.org/0000-0001-8500-2192

The impact of financial management on increasing productivity and profitability of organizations

Abstract. 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.

Keywords: Financial Management; Organizational Productivity; Profitability; Financial Planning; Budget Control; Organization; Enterprise; Manager; Performance

JEL Classifications: Е24; Е41; Е64; I18; J28; J31

Acknowledgements and Funding: The authors received no direct funding for this research.

Contribution: The authors contributed equally to this work.

Data Availability Statement: The dataset is available from the authors upon request.

DOI: https://doi.org/10.21003/ea.V213-08

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Received 24.09.2024
Received in revised form 21.10.2024
Accepted 2.11.2024
Available online 26.02.2025