Notes Managerial Finance Governance and Agency:
Governance and Agency:
Government regulation generally shapes the corporate governance of all
During the recent decade, corporate governance has received increased
Notes Managerial Finance Focus on Practice
Focus on Practice
Professional Certifications in Finance:
American Academy of Financial Management (AAFM) The AAFM
administers a host of certification programs for financial professionals in a
wide range of fiel
Notes Managerial Finance Introduction
What is Finance?
Finance can be defined as the science and art of managing money.
At the personal level, finance is concerned with individuals decisions about how
much of their earnings they spend, how much they save,
Notes Managerial Finance Corporate Finance
Some important questions that are answered using finance
What long-term investments should the firm take on?
Where will we get the long-term financing to pay for the investment?
How will we
Notes Managerial Finance Ethics and Share Price
The Role of Business Ethics:
Ethics and Share Price
Ethics programs seek to:
reduce litigation and judgment costs
maintain a positive corporate image
build shareholder confidence
gain the loyalty and res
Notes Managerial Finance Shareholders
Why Shareholder Value?
If we do our jobs, we can contribute to society in very meaningful ways
Companies are expected to do good deeds, but also good work-work focused on our mission to create value over time for ow
Notes Managerial Finance Relationship to Accounting
Managerial Finance Function: Relationship to Accounting
The firms finance and accounting activities are closely-related and
In small firms accountants often carry out the finance fun
Notes Managerial Finance The Threat of Takeover
The Agency Issue: The Threat of Takeover
When a firms internal corporate governance structure is unable to keep
agency problems in check, it is likely that rival managers will try to gain
control of the fir
Notes Managerial Finance Goal Of Financial Management
Goal Of Financial Management
What should be the goal of a corporation?
Maximize market share?
Maximize the current value of the companys stock?
Does this mean we
Notes Managerial Finance Types of Entrepreneurships
Easiest to start
Single owner keeps all the profits
Taxed once as personal income
Limited to life of owner
Equity capital limited to o