Role Of Financial Manager

A Closer Look at Role of the pecuniary Manager

Let’s start with the traditional perspective. The pecuniary tutor is charged with making decisions that maximize shareholder foster. This is a examine way of stating that regardless of the financial manager’s bring supervisor, the criteria that the financial manager ideally applies is, What is the impact of my decision on the value of the firm? As the firm is owned by shareholders, the financial manager is optimizing shareholder value. In essence, the shareholders trust the financial manager with the firm’s financial decisions, based on the understanding that the manager will make decisions based on what is in the owners’ best interests (the manager is the shareholders’ agent, using the schoolman lingo). In it pure form, this is a Friedman approach. However, the role of ethics and value to the firm of addressing stakeholder interests is change magnitudely acknowledged by even hidebound pro-free market quarters. Reasons include the losses to shareholders when managers are unethical, and the increasing cases of firms increasing shareholder value by tending to stakeholder interests to at to the lowest degree some extent. The harder cases are those in which shareholder benefit skunknot be exacted from furthering the interests of a stakeholder (non-shareholder).



That is, there is a net cost to the shareholder. In this case, how much weight is provided to the interests of one versus another? In my experience, a private firm has an easier time with this, as the owner can simply decide to acts against his own economic interest (for good example Bill Gates). Public companies provide more challenging frameworks.

In a simple description, financial managers manage the following flows:
(1) upbringing cash for the operations,
(2) ordering cash in operations,
(3) cash generated by operations, and
(4) disposition of cash from operations.

Financial managers decide which operations to invest the firm’s cash in....If you want to get a full essay, order it on our website: Orderessay



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