Financial Literacy and its Role in Achieving Strategic Financial Management

Analytical study of the opinions of a sample of managers, heads of departments in Iraqi private banks in the governorates of (Baghdad – Babylon – Holy Karbala)

Master’s thesis submitted to the Council of the College of Business and Economics at The University of Karbala and is part of the requirements for obtaining a master’s degree in Business Administration

Provided by the student

Ameer Towfeeq Abdul Ameer Ali

Supervised by

Assistant Prof Dr.

Ali Ahmed Fares

This study aims to show the impact of financial literacy on strategic financial management at the level of a sample of private commercial banks. Financing strategy, investment strategy, dividend strategy) as an approved variable.

To achieve the goal of the thesis, the sample was selected from (7) banks within the banking sector listed on the Iraq Stock Exchange, and the data analysis method was used in two ways, the first method (the statistical method), as the study was conducted on a sample of (120) individuals from managers and heads of departments in banks The Iraqi private and spread in the governorates of (Baghdad,  Babylon, Holy Karbala), the questionnaire was used as the main tool in collecting data and information necessary for the study and was analyzed by ready-made statistical programs, including (Excel, Amos, Spss), As for second method (financial methods), the financial analysis of study sample banks was for a period between (2006-2020) and the use of annual financial statements, which are as follows (total assets, total cash, total deposits, total financial assets, total loans, total equity, net profit, dividends).

The thesis reached a set of results, including the presence of a significant effect of financial literacy in strategic financial management, and this indicates that managers of private commercial banks can, by strengthening the principles of financial literacy, develop the requirements of strategic financial management, and the study recommended a set of recommendations, including on: Banks develop strategies and programs to eliminate or reduce the level of financial illiteracy, including all employees, especially the senior management. These programs are scientific and realistic, taking into account the rapid changes and developments in the banking business.