Financial_Management_Theory_Part-_B_&_C_[10_Questions]

Unit 20 Financial Managementthe Brief History of Financial Management FieldIntroductionFinancial managers have the primary responsibility for acquiring funds (cash) needed by a firm and for directing these funds into projects that will maximize the value of the firm for its owners. The field of financial management is an exciting and challenging one. Any business has important financial concerns and its success or failure depends in a large part on the quality of its financial decisions. Every key decision made by a firm's managers has important financial implications. Managers daily face questions like the following.The Finance Function财务职能Introduction引论Financial managers have the primary responsibility for acquiring funds (cash) needed by a firm and for directing these funds into projects that will maximize the value of the firm for its owners. 财务经理的基本职责是获得公司所需要的资金并把资金投入到能使所有者财富最大化的项目中去。

FINANCIALMANAGEMENT Financial ManagementIntroductionFinancial management plays a vital role in every organization, regardless of its size or industry. It involves the planning, organizing, controlling, and monitoring of financial resources to achieve the goals and objectives of the organization. Effective financial management helps in maximizing profits, minimizing costs, and ensuring the overall financial health of the organization.Importance of Financial ManagementFinancial management is crucial for several reasons. First, it helps in ensuring the availability of funds when needed. By accurately analyzing and predicting future cash flows, financial managers can determine the amount of funds required for various activities within the organization. This includes managing working capital, capital budgeting, and evaluating investment opportunities.Second, financial management assists in making informed business decisions. By providing financial information and analysis, managers can evaluate different alternatives and choose the most appropriate course of action. Financial management techniques such as cost analysis, breakeven analysis, and financial ratios help in assessing the financial viability and profitability of different projects or products.Third, financial management helps in mitigating financial risks. Every business faces various financial risks such as credit risk, market risk, and interest rate risk. Financial managers employ several risk management techniques such as hedging, diversification, and insurance to minimize the impact of these risks on the organization.Key Components of Financial ManagementFinancial management comprises several key components that work together to ensure effective management of resources. These components include:1. Financial Planning: Financial planning involves setting financial goals and developing strategies to achieve them. It includes forecasting sales, estimating expenses, and creating a budget that aligns with organizational objectives.2. Financial Analysis: Financial analysis involves the interpretation and evaluation of financial statements to assess the financial performance of the organization. It includes analyzing key financial ratios, such as liquidity ratios, profitability ratios, and leverage ratios.3. Capital Budgeting: Capital budgeting involves analyzing and evaluating investment opportunities to determine which projects or assets are most financially viable. This is crucial for allocating resources efficiently and ensuring optimal return on investment.4. Cash Flow Management: Cash flow management is about monitoring and controlling the inflow and outflow of cash within the organization. It involves managing working capital, maintaining appropriate cash reserves, and managing cash flows to ensure smooth operations.5. Risk Management: Risk management involves identifying, assessing, and mitigating financial risks that may impact the organization. Financial managers employ various risk management techniques such as insurance, hedging, and diversification to protect the organization from potential financial losses.6. Financial Reporting: Financial reporting involves preparing and presenting financial statements and reports to stakeholders, including shareholders, creditors, and regulatory authorities. These reports provide an overview of the financial position and performance of the organization, ensuring transparency and accountability.ConclusionFinancial management is a critical function in any organization, providing the necessary tools and techniques to manage financial resources effectively. By implementing sound financial management practices, organizations can improve profitability, minimize costs, and ensure long-term financial sustainability. Financial planning, analysis, capital budgeting, cash flow management, risk management, and financial reporting are the key components that contribute to successful financial management. It is essential for organizations to have competent financial managers who can navigate the complexities of the financial landscape and make informed decisions to drive growth and success.。

几个重要财务管理理论⑴资本资产定价模型(Capital Asset Pricing Model ，简称CAPM）它是由威廉·夏普、约翰·林特纳一起创造发展的，以投资组合理论和资本市场理论基础,主要研究证券市场中资产的预期收益率与风险资产之间的关系，以及均衡价格是如何决定。

资本资产定价模型假设所有投资者都按马科维茨的资产选择理论进行投资，对期望收益、方差和协方差等估计完全相同,投资人可以自由借贷。

基于这样的假设，资本资产定价模型研究的重点在于探求风险资产收益与风险的数量关系，即为了补偿某一特定程度的风险，投资者应该获得的报酬率。

⑵现代资产组合理论（Modern Portfolio Theory，简称MPT）亦称为现代证券投资组合理论、证券组合理论或投资分散理论，是关于最佳投资组合的理论。

该理论由马科维茨（Harry Markowitz）提出,他的研究结论是:只要不同资产之间的收益变化不完全正相关，就可以通过资产组合方式来降低投资风险.该理论的提出主要是针对化解投资风险的可能性，主要解决投资者如何衡量不同的投资风险以及如何合理组合自己的资金以取得最大收益问题。

该理论认为组合金融资产的投资风险与收益之间存在一定的特殊关系，投资风险的分散具有规律性。

⑶交易成本理论（Transaction Costs Theory）所谓交易成本就是在一定的社会关系中，人们自愿交往、彼此合作达成交易所支付的成本,也即人—人关系成本，它与一般的生产成本（人—自然界关系成本)是对应概念。

该理论是由诺贝尔经济学得奖主科斯(Coase)所提出，交易成本理论的根本论点在于对企业的本质加以解释。

由于经济体系中使用市场价格机制运行的成本相对偏高，而企业机制的专业分工能够有效地降低市场机制带来的交易成本。

该理论认为交易成本的产生源自于交易本身的三项特征，即交易商品或资产的专属性、交易不确定性、交易的频率，其中交易的频率越高,交易成本也就越高，这也是企业产生的原因之一。