Strategic Financial Management: A Review

Strategic financial management (SFM) integrates the financial management function into the corporate strategy. It aims at creating value through finance by supporting the overall strategy of the company. Thus, SFM is the portfolio constituent of the corporate strategic plan that embraces the optimum investment and financing decisions required to achieve the overall objectives in the face of intense competition. In other words, it is the combination of financing and investment policies of the firm so that the shareholders’ wealth is maximised, to whom the management is ultimately responsible. An attempt has been made in this paper to understand the concept of SFM by reviewing the existing literature.