2015【最新文档】财务管理考研专业英语.doc

1 The Goals and Functions of
Financial Management
Chapter Objectives
how finance builds on the disciplines of accounting and economics.
the analytical decision making nature of finance within a risk-return framework.
the primary goal of finance as the maximization of shareholder wealth as measured by share price.
4. Identify possible conflicting goals of finance such as social goals or management interests.
5. Outline the activities of financial managers that are primarily based on the raising and investment of funds in an efficient manner.
6. Identify some of the domestic and international economic conditions that the financial manager should consider.
7. Identify the role of financial markets in allocating capital.
Contents
I. Financial management is critical for a firm’s ess.
II. Finance relies upon the disciplines of economics and accounting.
A. Economics provides structure to decision making and helps us to understand the economic environment in which the financial manager operates.
B. Accounting provides the financial data needed for financial decision making.
C. The demand for financial management skills exists in many sectors of our society, including corporate management, financial institutions and consulting.
III. Finance as a field of study has evolved over time in response to changing business management needs.
IV. Finance maintains that the goal of the firm is maximization of shareholders' wealth.
A. Shareholders’ wealth maximization is measured by the highest possible market price of the firm’s shares.
B. Financial decision-making analysis is always predicated on this goal: to increase value to shareholders within a risk-return framework.
C. Shoarehlders' wealth maximization incorporates:
D. The efficiency of the capital market dictates that, with a given level of risk, capital will flow to those firms "promising" the highest return.
E. Maximization of shareholder wealth is tempered by social respo