Financial Management and Profitability: A Multifaceted Study of Business Units from 1971 to 2012

Abstract

This paper summarizes a series of research papers and investigations interrogating financial decision-makings and their impacts on profitability during 1971 to 2012. Scholars have identified the commonality of financial problems of firms in India and abroad, addressing various aspects of financial management viz. working capital, investment policy and dividend policy etc. While these aspects control and influence the financial performance of business units, the objectives and nature of ownership are other ruling factors. The aim of this paper is to highlight the vital attributes of working capital, debt-equity ratio, dividend payout policy (and its magnitude) and their impact on financial performance of the business units. To serve this purpose, a study of the financial decision-makings of all firms of varying capital sizes and ownership with their specific and general problems have been invariably accommodated in this paper.