财务管理(英文第十三版)ch 1-sheena

1、Chapter 1The Role of Financial Management1What is Financial Management?The Goal of the FirmCorporate GovernanceOrganization of the Financial ManagementChapter Outline15-8月-222It is concerned with the acquisition, financing, and management of assets with some overall goal in mind.The decision functio

2、n of financial managementInvestment DecisionFinancing DecisionAsset Management DecisionWhat is Financial Management15-8月-223The Balance Sheet15-8月-224The Goals of The FirmProfit MaximizationTo maximize earnings per share(EPS)Doesnt specify the timing or duration of expected returnsDoesnt consider ri

3、sksDoesnt allow for the effect of dividend policy on the market price of the stockTo maximize the market price per share15-8月-225Goals of The CorporationShareholders desire wealth maximizationDo managers maximize shareholder wealth?The separation of ownership and control“Agency Problems” represent t

4、he conflict of interest between management and ownersAgency cost15-8月-226Goals of The CorporationAgency Problem SolutionsMonitoring is done by:Bonding the agentSystematically reviewing management perquisitesAuditing financial statementsLimiting management decisionsThe managerial labor market15-8月-22

5、7Goals of The CorporationCorporate Social Responsibility(CSR)Such as: protect the consumer, pay fair wages to employees, safe working conditions, be involved in such environmental issues StakeholdersCreditors, employees, customers, suppliers, communities, and othersSustainability15-8月-228It refers t

6、o the system by which corporations are managed and controlled.It encompassed the relationships among：Corporate GovernanceShareholdersBoard of DirectorsSenior management15-8月-229Ethics & Management ObjectivesDoes value maximization justify unethical behavior?Enron exampleWorldCom exampleAIG exampleSa

7、rbanes-Oxley Act of 2002 ()Public Company Accounting Oversight Board (PCAOB)The Securities and Exchange Commission (SEC)Corporate Governance15-8月-2210Organization of the Financial Management FunctionBoard of DirectorsPresidentExecutive Vice PresidentOperationsExecutive Vice President Finance (CFO)Executive Vice PresidentMarketingVice President(Treasurer)Vice President(Controller)Capital BudgetingCash ManagementCredit Manage