导图社区 Financial Management1
这是一篇关于Financial Management1的思维导图
编辑于2022-02-21 20:12:06FIN202-Financial Management
L1-Ch.1 The Financial World
Objectives & Conflicts
Possible objectives of the firm
Target market share
Employee agitation(焦虑不安)
Survival
Creating an ever-expanding empire
Maximization of profit
Maximization of long-term shareholder wealth
*The assumed objective for finance: maximizing long-term shareholder wealth.
The practical reason
Multiplicity of objectives is difficult for decision making.
The theoretical reasons
The ‘contractual theory’(契约理论)
High risk of shareholders
Limited risk of workers, suppliers and banks
Society is best served by businesses focusing on returns to the owners (AS)
Conflict between objectives
Pro-capitalist economists(资本主义利益)
Paramount objective: shareholders’ interests (will benefit the firm and the society if the firm remain within ‘the rules of the game’)
Left-wing(左翼)
Primacy of workers’ rights and rewards (employees'’ interest maximized)
Balanced stakeholder approach
Shareholders wealth & Profit
What is shareholder wealth?
Maximising wealth can be defined as maximising purchasing power.
Maximising shareholder wealth means maximising the flow of dividends to shareholders through time. -----A long-term perspective
Profit maximisation is not the same as shareholder wealth maximisation
Prospects: Profit is a short-term perspective
Accounting problems:Judgment, guesswork, or even manipulation(操纵)
Risk:Profit figures do not allow for variability
Ownership and control
Problems
Diffuse and fragmented set of shareholders (不同集团的股东)
Control often lies in the hands of directors/executives
Separation, or a divorce, of ownership and control
The management team may pursue objectives attractive to them
Examples: perks, empire building, avoiding risky projects …
An example of the principal–agent problem(委托-代理)
Agency costs/ theory
The costs of attempting to ensure that agents act in the best interests of principals
Monitor managers’ behavior
Create incentive schemes and controls for managers to encourage the pursuit of shareholders’ wealth maximization
The loss resulting from failure to get them to act in this way
Corporate governance (Some solutions to Agency problem)
Annual general meeting
Corporate governance regulations
Linking rewards to shareholder wealth improvements. Example: stock option
Sackings: Humiliation & financial loss of managers
Selling shares and the takeover threat
Information flow
The financial manager plays a pivotal role in:
Interaction with the financial markets
Investment
Treasury management
Risk management
Strategy and value-based management
The flow of funds and financial intermediation
Savings into investment in an economy with financial intermediaries and financial markets