The Role of Financial Management in Supporting Managerial Decision Making
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Abstract
Financial management plays a strategic role in supporting managerial decision-making within higher education institutions. Effective financial management enables university leaders to allocate resources efficiently, ensure financial sustainability, and improve institutional performance. This study examines the role of financial management in supporting managerial decision-making at Universitas Muhammadiyah Tangerang. Using a descriptive-analytical approach, the research analyzes financial planning, budgeting, reporting, and control mechanisms as key components of financial management. The findings indicate that transparent and accountable financial management provides accurate and timely financial information, which is essential for informed managerial decisions related to academic programs, infrastructure development, and human resource management. Furthermore, effective financial management enhances institutional accountability and supports strategic planning processes. The study concludes that strengthening financial management systems is crucial for improving the quality of managerial decision-making and achieving sustainable institutional development at Universitas Muhammadiyah Tangerang.
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How to Cite
Ardiyanti, A. (2026). The Role of Financial Management in Supporting Managerial Decision Making. ProBisnis : Jurnal Manajemen, 17(1), 307–316. Retrieved from https://ejournal.joninstitute.org/index.php/ProBisnis/article/view/1404
References
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Orlando, H., Caicedo-Rolón, A. J., & Palacios-Alvarado, W. (2022). The importance of financial management for decision-making in the industry. Journal of Language and Linguistic Studies, 18(4), 212–229.
Valenta, G. (2024). Financial decision making: A comprehensive overview. Journal of Management Information and Decision Sciences, 27(S6), 1–3.
Kalorbobir, Y. M. (2025). The influence of management accounting and financial knowledge on managerial decision-making in banks in the Aru Islands. Jurnal Akuntansi Kompetif, 8(3), 45–59.
Febryantahanuji, F., Wibawa, E. S., Wardani, N. A., Rasminto, H., & Wahyuning, S. (2025). Optimizing management accounting in strategic decision-making in manufacturing companies. Jurnal Ilmiah Manajemen, Ekonomi dan Akuntansi, 5(2), 173–179.
Handoko, S. N., & Riyadi, S. (2025). The role of management accounting information in short-term and long-term managerial decision-making. Journal of Economics, Assets, and Evaluation, 3(2), 120–135.
Lengkey, M., Sael, M. L., & Langi, T. A. (2025). Analysis of the influence of management accounting on managerial decision-making at PT SMA. Jurnal Mahasiswa Akuntansi Vokasi, 1(1), 10–22.
Mohammed, M. M. (2022). Importance of accounting information in management decision-making process. Journal of Studies in Science and Engineering, 2(2), 44–58.
Sundjaja, E., & Barlian, A. (2023). Financial management: Theory and practice for decision-making. Bandung: Akademika Publisher.
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Gitman, L. J., & Zutter, C. J. (2022). Principles of managerial finance (15th ed.). Pearson Education.
Atrill, P., & McLaney, E. (2021). Management accounting for decision makers (9th ed.). Pearson.
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Shim, J. K., & Siegel, J. G. (2023). Financial management for non-financial managers (8th ed.). Wiley.
Higgins, R. C. (2021). Analysis for financial management (12th ed.). McGraw-Hill.
Ross, S. A., Westerfield, R. W., & Jaffe, J. (2020). Corporate finance (12th ed.). McGraw-Hill Education.
Tandelilin, E. (2023). Portfolio and investment: Theory and applications in financial decision-making. Jakarta: Salemba Empat.
Mulyadi. (2024). Cost and management accounting for decision-making. Jakarta: Salemba Empat.
Kieso, D. E., Weygandt, J. J., & Warfield, T. D. (2021). Intermediate accounting (17th ed.). Wiley.
Bhunia, A., & Das, S. (2022). Financial analytics and decision making: Techniques and applications. Routledge.
Sharma, A., & Singh, R. (2023). Behavioral aspects of financial decision making. International Journal of Finance, 10(2), 115–130.
Chen, L., & Li, X. (2024). Risk management and strategic financial decisions in emerging markets. Journal of Financial Strategy, 9(1), 25–44.
Oliveira, T., & Martins, M. F. (2023). Information technology and financial decision-making effectiveness. Electronic Journal of Information Systems in Developing Countries, 89(3), e12146.
Patel, S., & Mehta, R. (2022). Working capital management and firm decision outcomes. Journal of Corporate Finance Studies, 7(4), 240–258.
Rahman, A., & Ahmad, N. (2024). Financial performance indicators in managerial decision-making. Asian Journal of Finance and Accounting, 6(1), 89–105.
Banerjee, P., & Ghosh, S. (2025). Capital budgeting decisions: Theory, evidence, and practice. Journal of Business Finance, 15(1), 50–71.
Singh, K., & Sahu, T. N. (2023). Financial reporting quality and managerial decisions. International Accounting Review, 12(2), 77–99.
Kaur, H., & Singh, D. (2024). Impact of financial literacy on managerial decision making. Global Journal of Management and Business Research, 24(6), 130–148.
Lee, J., & Kim, S. (2025). Digital finance systems and decision support for managers. Journal of Business Systems, 19(4), 101–119.
Zhao, Y., & Wang, H. (2023). Financial forecasting tools in managerial decision making. Finance Research Letters, 51, 102345.
Nguyen, T. T., & Tran, Q. (2024). Strategic financial planning for sustainable business decisions. Journal of Strategic Finance, 8(3), 195–212.
Brigham, E. F., & Ehrhardt, M. C. (2019). Financial management: Theory and practice (15th ed.). Cengage Learning.
Gitman, L. J., & Zutter, C. J. (2019). Principles of managerial finance (14th ed.). Pearson Education.
Atrill, P., & McLaney, E. (2019). Management accounting for decision makers (8th ed.). Pearson Education.
Ross, S. A., Westerfield, R. W., & Jordan, B. D. (2019). Fundamentals of corporate finance (12th ed.). McGraw-Hill Education.
Drury, C. (2019). Management and cost accounting (10th ed.). Cengage Learning.
Kaplan, R. S., & Atkinson, A. A. (2019). Advanced management accounting (3rd ed.). Pearson Education.
Higgins, R. C. (2019). Analysis for financial management (11th ed.). McGraw-Hill Education.
Feriandy, F. (2024). The influence of financial management practices on company performance: Analysis of cash flow, debt, working capital, and capital structure. International Journal of Business and Applied Economics, 3(6), 1107–1116. https://doi.org/10.55927/ijbae.v3i6.12194
Mudassir, A. F. (2024). The role of accounting in business decision-making in the digital era. Journal of Economics, Accounting, and Taxation, 1(4), 484–494. https://doi.org/10.61132/jeap.v1i4.864
Macaumbao, W. B., & Bandera, A. D. (2025). A review on financial management practices and their implications. American Journal of Economics and Business Innovation, 4(3), 1–15. https://doi.org/10.54536/ajebi.v4i3.5988
Orlando, H., Caicedo-Rolón, A. J., & Palacios-Alvarado, W. (2022). The importance of financial management for decision-making in the industry. Journal of Language and Linguistic Studies, 18(4), 212–229.
Valenta, G. (2024). Financial decision making: A comprehensive overview. Journal of Management Information and Decision Sciences, 27(S6), 1–3.
Kalorbobir, Y. M. (2025). The influence of management accounting and financial knowledge on managerial decision-making in banks in the Aru Islands. Jurnal Akuntansi Kompetif, 8(3), 45–59.
Febryantahanuji, F., Wibawa, E. S., Wardani, N. A., Rasminto, H., & Wahyuning, S. (2025). Optimizing management accounting in strategic decision-making in manufacturing companies. Jurnal Ilmiah Manajemen, Ekonomi dan Akuntansi, 5(2), 173–179.
Handoko, S. N., & Riyadi, S. (2025). The role of management accounting information in short-term and long-term managerial decision-making. Journal of Economics, Assets, and Evaluation, 3(2), 120–135.
Lengkey, M., Sael, M. L., & Langi, T. A. (2025). Analysis of the influence of management accounting on managerial decision-making at PT SMA. Jurnal Mahasiswa Akuntansi Vokasi, 1(1), 10–22.
Mohammed, M. M. (2022). Importance of accounting information in management decision-making process. Journal of Studies in Science and Engineering, 2(2), 44–58.
Sundjaja, E., & Barlian, A. (2023). Financial management: Theory and practice for decision-making. Bandung: Akademika Publisher.
Brigham, E. F., & Houston, J. F. (2021). Fundamentals of financial management (15th ed.). Cengage Learning.
Gitman, L. J., & Zutter, C. J. (2022). Principles of managerial finance (15th ed.). Pearson Education.
Atrill, P., & McLaney, E. (2021). Management accounting for decision makers (9th ed.). Pearson.
Horngren, C. T., Sundem, G. L., & Stratton, W. O. (2020). Introduction to management accounting (16th ed.). Pearson.
Brigham, E. F., & Ehrhardt, M. C. (2022). Financial management: Theory and practice (16th ed.). Cengage.
Shim, J. K., & Siegel, J. G. (2023). Financial management for non-financial managers (8th ed.). Wiley.
Higgins, R. C. (2021). Analysis for financial management (12th ed.). McGraw-Hill.
Ross, S. A., Westerfield, R. W., & Jaffe, J. (2020). Corporate finance (12th ed.). McGraw-Hill Education.
Tandelilin, E. (2023). Portfolio and investment: Theory and applications in financial decision-making. Jakarta: Salemba Empat.
Mulyadi. (2024). Cost and management accounting for decision-making. Jakarta: Salemba Empat.
Kieso, D. E., Weygandt, J. J., & Warfield, T. D. (2021). Intermediate accounting (17th ed.). Wiley.
Bhunia, A., & Das, S. (2022). Financial analytics and decision making: Techniques and applications. Routledge.
Sharma, A., & Singh, R. (2023). Behavioral aspects of financial decision making. International Journal of Finance, 10(2), 115–130.
Chen, L., & Li, X. (2024). Risk management and strategic financial decisions in emerging markets. Journal of Financial Strategy, 9(1), 25–44.
Oliveira, T., & Martins, M. F. (2023). Information technology and financial decision-making effectiveness. Electronic Journal of Information Systems in Developing Countries, 89(3), e12146.
Patel, S., & Mehta, R. (2022). Working capital management and firm decision outcomes. Journal of Corporate Finance Studies, 7(4), 240–258.
Rahman, A., & Ahmad, N. (2024). Financial performance indicators in managerial decision-making. Asian Journal of Finance and Accounting, 6(1), 89–105.
Banerjee, P., & Ghosh, S. (2025). Capital budgeting decisions: Theory, evidence, and practice. Journal of Business Finance, 15(1), 50–71.
Singh, K., & Sahu, T. N. (2023). Financial reporting quality and managerial decisions. International Accounting Review, 12(2), 77–99.
Kaur, H., & Singh, D. (2024). Impact of financial literacy on managerial decision making. Global Journal of Management and Business Research, 24(6), 130–148.
Lee, J., & Kim, S. (2025). Digital finance systems and decision support for managers. Journal of Business Systems, 19(4), 101–119.
Zhao, Y., & Wang, H. (2023). Financial forecasting tools in managerial decision making. Finance Research Letters, 51, 102345.
Nguyen, T. T., & Tran, Q. (2024). Strategic financial planning for sustainable business decisions. Journal of Strategic Finance, 8(3), 195–212.
Brigham, E. F., & Ehrhardt, M. C. (2019). Financial management: Theory and practice (15th ed.). Cengage Learning.
Gitman, L. J., & Zutter, C. J. (2019). Principles of managerial finance (14th ed.). Pearson Education.
Atrill, P., & McLaney, E. (2019). Management accounting for decision makers (8th ed.). Pearson Education.
Ross, S. A., Westerfield, R. W., & Jordan, B. D. (2019). Fundamentals of corporate finance (12th ed.). McGraw-Hill Education.
Drury, C. (2019). Management and cost accounting (10th ed.). Cengage Learning.
Kaplan, R. S., & Atkinson, A. A. (2019). Advanced management accounting (3rd ed.). Pearson Education.
Higgins, R. C. (2019). Analysis for financial management (11th ed.). McGraw-Hill Education.