Investigating Financial Forecasting in Corporate Decision-Making and Strategic Planning in Nia- Mariis Division II

This study explored how financial forecasting influences corporate decision-making and strategic planning within enterprises in the NIA–MARIIS Division II, Philippines. It focused on analyzing the demographic characteristics of the participating businesses, including their size, industry sector, and type of ownership. This study evaluated how financial forecasting is perceived in terms of its role in organizational decision-making and strategic planning. It also investigated variations in cash flow performance among different industry sectors and examined the link between cash flow management practices and financial stability. Additionally, the study analyzed how demographic business factors relate to cash flow optimization strategies. A descriptive-correlational research design was utilized, involving 150 managers, financial officers, accountants, and business owners selected through purposive sampling. Data were collected using a questionnaire developed by the researcher, and the analysis employed frequency, percentage, weighted mean, standard deviation, one-way ANOVA, chi-square test of independence, and Pearson product–moment correlation at a 0.05 significance level. The results indicate that most of the enterprises involved were small and privately owned. The participants concurred that financial forecasting significantly enhances decision-making, resource allocation, transparency, and strategic planning. Notable differences in cash flow performance were observed across industry sectors. Furthermore, advanced cash flow management practices are strongly linked to improved financial stability, whereas inventory management and the age of the business show significant positive correlations with cash flow optimization strategies. Based on these insights, a strategic framework for enhancing financial forecasting is proposed to bolster forecasting practices, refine financial management, and support sustainable organizational growth. The study concludes that effective financial forecasting is a crucial management tool that fosters informed decision-making, financial stability, and long-term success in various business sectors.