Impact of Financing Strategies, Financial Management, and Managerial Skills on Firm Growth: A Multiagent Simulation Approach

This paper examines how managerial abilities, financial management skills, and financing strategies are intertwined in promoting business performance and growth. The study replicates different financing options (debt, equity, internal funds, trade credit, and others) using Multi-Agent-Based Modeling (MABM) to examine their effects in dynamic market settings. The findings show that competitive resilience and sustained growth are facilitated by a balanced finance strategy that is strengthened by strong financial management and capable leadership. The simulation shows how businesses adjust to changes in the economy and balance risk and growth potential using various approaches. The results show how well MABM captures the intricacies of financial strategy decisionmaking in unpredictable markets and provide insights into financing optimization for long-term organizational health.