+44-7897-074717Editorial - Journal of Research in International Business and Management ( 2025) Volume 12, Issue 4
Published: 26-Jul-2025
Global financial management involves the planning, control, and optimization of financial resources across international business operations. This study examines the importance of global financial management in supporting strategic decision-making, risk management, and performance enhancement in multinational enterprises. It explores key aspects such as foreign exchange management, international capital budgeting, global cash flow management, and financial risk mitigation. The paper highlights challenges related to currency volatility, regulatory diversity, and cross-border financial coordination. It also discusses the role of financial integration and technological tools in improving transparency and efficiency. By linking financial management principles with international business strategy, this study emphasizes that effective global financial management strengthens stability, profitability, and long-term competitiveness in global markets.
Global Financial Management, International Finance, Foreign Exchange Risk, Multinational Enterprises, Capital Budgeting, Financial Strategy, Global Markets, International Business
Global financial management is a core function for firms operating in international markets, as it governs how financial resources are allocated, controlled, and optimized across borders. Multinational enterprises face complex financial environments characterized by currency fluctuations, diverse regulatory systems, and varying economic conditions. Effective global financial management enables firms to navigate these challenges while supporting strategic objectives. Financial coordination across international units enhances organizational performance. The globalization of business has increased exposure to financial risks. Exchange rate volatility, interest rate fluctuations, and inflation differences affect international cash flows and profitability. Global financial management focuses on identifying and mitigating these risks through hedging strategies and financial planning. Risk-aware financial management supports stability and predictability (Madura et al., 2018).
Foreign exchange management is a critical component of global financial management. Multinational firms engage in transactions denominated in multiple currencies, creating exposure to currency risk. Effective currency management reduces uncertainty and protects financial performance. Currency strategies enhance competitiveness in global markets. International capital budgeting involves evaluating and selecting investment projects across countries (Parker, 2012). Differences in tax systems, political risk, and market conditions complicate investment decisions. Global financial management provides frameworks for assessing international investments. Sound capital budgeting supports long-term value creation.
Global cash flow management ensures efficient movement and utilization of funds across subsidiaries. Centralized cash management improves liquidity and reduces financing costs. Effective cash flow coordination enhances financial flexibility. Liquidity management supports operational continuity.
Regulatory diversity poses significant challenges for global financial management. Accounting standards, taxation policies, and financial reporting requirements vary across countries. Firms must ensure compliance while maintaining financial efficiency. Regulatory alignment supports transparency and credibility (Shapiro & Hanouna, 2019).
Technological advancements have transformed global financial management practices. Financial information systems, digital payment platforms, and data analytics improve accuracy and speed. Technology-enabled finance enhances decision-making and control. Digital finance supports global integration.
Corporate governance influences global financial management effectiveness. Transparent financial reporting and ethical financial practices strengthen stakeholder trust. Strong governance frameworks reduce financial misconduct risks. Governance enhances financial discipline (Ehrhardt, 2011).
Global financial management also supports strategic planning and performance measurement. Financial data informs strategic choices and resource allocation. Integrated financial planning enhances alignment between strategy and execution. Financial insight drives competitive advantage. Human expertise is essential in managing global financial complexity. Skilled financial managers with international experience contribute to effective decision-making. Talent development strengthens global financial capability. Expertise supports resilience and growth (Bekaert & Hodrick, 2012).
Global financial management plays a crucial role in supporting international business performance and stability. This study highlights that effective management of currency risk, capital investment, and global cash flows enhances profitability and resilience. Multinational enterprises that strengthen global financial management capabilities are better positioned to compete successfully in dynamic international markets.
Bekaert, G., & Hodrick, R. J. (2012). International financial management (Vol. 2). Pearson.
Ehrhardt, M. C. (2011). Financial management: theory and practice. USA.
Madura, J., Hoque, A., & Krishnamrti, C. (2018). International financial management. Cengage AU.
Parker, L. D. (2012). From privatised to hybrid corporatised higher education: A global financial management discourse. Financial Accountability & Management, 28(3), 247-268.
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