THE IMPACT OF INFLATION ON FINANCIAL MANAGEMENT STRATEGIES
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Abstract: THE IMPACT OF INFLATION ON FINANCIAL MANAGEMENT STRATEGIES
This research investigates the impact of inflation on financial management strategies. Objectives include analyzing how inflation affects financial decision-making, identifying adaptive strategies used by firms, and assessing the long-term impacts on financial performance. A survey research design is employed to gather data from financial managers in various industries. Using Taro Yamane's formula, a sample size of 300 firms in Lagos, Nigeria, was chosen. The reliability coefficient score of the survey instrument is 0.87. Findings indicate that inflation significantly disrupts financial management practices, necessitating adaptive strategies such as price adjustments and cost control to maintain financial stability. Recommendations include developing robust inflation management plans and flexible financial strategies to navigate inflationary pressures effectively.
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