THE ROLE OF BUDGETING IN FINANCIAL DECISION-MAKING
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THE ROLE OF BUDGETING IN FINANCIAL DECISION-MAKING
This study aims to: (1) investigate the role of budgeting in financial decision-making, (2) identify key budgeting practices that support sound financial decisions, and (3) evaluate the impact of budgeting on financial stability. A survey design was employed to gather data from financial managers and decision-makers. Using Taro Yamane's formula, a sample size of 379 participants from corporate organizations in Lagos was determined, ensuring comprehensive insights. The corporate sector was chosen for its structured decision-making processes and potential for budgeting impact. The reliability coefficient score of the survey was 0.88. Findings indicate that effective budgeting significantly enhances financial decision-making by providing clear financial frameworks for evaluating options, setting financial targets, and ensuring alignment with organizational goals. Recommendations include integrating financial decision-making processes with budgeting cycles, providing training on effective budgeting techniques, and continuously monitoring and adjusting budgets to ensure sound financial decisions.
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