International Journal of Commerce and Management Research

Authors
Pasunuri Amaraveni, Mulukalapally Susruth

Abstract
Financial planning is an integral part of financial management which deals with the management of a firm’s funds with a view to maximizing profit and the wealth of shareholders. The main aim of this study is to examine the impact of investment decisions on financial planning. The sample used in this study are 5 companies of pharmaceutical industry which listed in National stock exchange and secondary data collected for period 2011-2020. Robust Regression analysis with S-Estimation method were employed to analyze the relationship between the dependent variable and independent variables. Findings show that there is a significant relationship between investment decisions and the financial planning with the R2@ 76%. The study findings indicated that only research and development decision had negative impact on the financial planning while fixed assets decisions and current assets decisions had positive impact on the financial planning. The study recommended the pharma companies should invest optimum amount in research and development decision with maintaining minimum level of profit as it had negative impact on the financial planning, the least variation to the expected results and that leads to highest contribution to operating profit.