The objectives of the study are (a) to ascertain the financial goals pursued by companies in Malaysia and (b) to find out the relationship between firms financial performance and stated financial goals. Data on the financial goals are collected from 41 KLSE listed firms through a questionnaire. An analysis of the relationship between the financial goals pursued by these firms and their actual performance is conducted using dummy variables for financial goals. The results of the questionnaire analysis are: (a) Firms in Malaysia follow multiple financial goals. (b) A very few firms consider maximization of market value per share as their primary goal in the financial decision-making. (c) From the overall rank ordering of the financial goals, the following four goals could be isolated as more important in practice: (i) maximization of operating profit before interest and taxes (PBIT); (ii) maximizing the rate of return on equity (ROE); (iii) maximizing the growth rate in earnings per share (EPS); and (iv) ensuring that funds are available. The cross section study of the selected sample companies reveals that the pursuit of the goal of maximizing PBIT is positively related to the accounting-based financial performance. However, pursuing the goal of maximizing ROE has no relationship with the actual performance measured by ROE, and it has a negative relationship with the financial performance measure of ROA. The financial goals pursued by firms in Malaysia have no relation with market-to-book value as a measure of performance.