财务管理(英文第十三版)ch 1_sheena

TheRoleofFinancialManagementWhatisFinancialManagement?TheGoaloftheFirmCorporateGovernanceOrganizationoftheFinancialManagement2019/9/262FundamentalsofFinancialManagementItisconcernedwiththeacquisition,financing,andmanagementofassetswithsomeoverallgoalinmind.Thedecisionfunctionoffinancialmanagement◦InvestmentDecision◦FinancingDecision◦AssetManagementDecision2019/9/263FundamentalsofFinancialManagement42019/9/26FundamentalsofFinancialManagementProfitMaximizationTomaximizeearningspershare(EPS)◦Doesn’tspecifythetimingordurationofexpectedreturns◦Doesn’tconsiderrisks◦Doesn’tallowfortheeffectofdividendpolicyonthemarketpriceofthestockTomaximizethemarketpricepershare5FundamentalsofFinancialManagement2019/9/26ShareholdersdesirewealthmaximizationDomanagersmaximizeshareholderwealth?◦Theseparationofownershipandcontrol“AgencyProblems”representtheconflictofinterestbetweenmanagementandowners◦Agencycost6FundamentalsofFinancialManagement2019/9/26AgencyProblemSolutions◦Monitoringisdoneby:BondingtheagentSystematicallyreviewingmanagementperquisitesAuditingfinancialstatementsLimitingmanagementdecisionsThemanageriallabormarket7FundamentalsofFinancialManagement2019/9/26CorporateSocialResponsibility(CSR)◦Suchas:protecttheconsumer,payfairwagestoemployees,safeworkingconditions,beinvolvedinsuchenvironmentalissuesStakeholders◦Creditors,employees,customers,suppliers,communities,andothersSustainability8FundamentalsofFinancialManagement2019/9/26Itreferstothesystembywhichcorporationsaremanagedandcontrolled.Itencompassedtherelationshipsamong：2019/9/269FundamentalsofFinancialManagementShareholdersBoardofDirectorsSeniormanagementEthics&ManagementObjectives◦Doesvaluemaximizationjustifyunethicalbehavior?◦Enronexample◦WorldComexample◦AIGexampleSarbanes-OxleyActof2002()◦PublicCompanyAccountingOversightBoard(PCAOB)◦TheSecuritiesandExchangeCommission(SEC)2019/9/26FundamentalsofFinancialManagement102019/9/26FundamentalsofFinancialManagement11