Abstract:
Financial decisions are deemed to be a key component in today's fiercely competitive business environment to enhance
the company's financial success. Hence, this study investigates the impact of financial decisions on financial performance
of listed material companies in Sri Lanka. Leverage decisions, working capital decisions, dividend decisions and
investment decisions were considered as financial decisions variables and financial performance was measured using
return on assets (ROA). Data were collected from published financial statements of 20 listed material companies in Sri
Lanka from 2017 to 2021 using simple random sampling method. Data were analyzed using regression analysis.
Correlation analysis confirmed that all independent variables are positively correlated with financial performance of listed
material companies in Sri Lanka. Moreover, the regression results and findings revealed that there is negative insignificant
impact between leverage decisions, working capital decisions, and investment decisions on financial performance. And
also, there is positive significant impact between dividend decisions on financial performance of listed material companies
in Sri Lanka. The study therefore recommended that there is a need for well-developed financial planning in material
companies to enhance their performance. The findings of the study hold practical implications for policy makers, owners,
managers and investors.
