Financial Management

Financial management is the strategic process of planning, organizing, directing, and controlling the financial activities and resources within an organization to achieve its objectives. As a critical discipline within corporate finance and a core function of overall business management, it encompasses crucial decisions regarding investment (capital budgeting), financing (capital structure), and working capital management. By leveraging principles from finance and accounting, financial managers aim to maximize firm value, manage risk, and ensure the efficient allocation of capital, thereby driving the long-term financial health and growth of the enterprise.

1. Introduction to Financial Management
   1. Definition and Scope of Financial Management
      1. Nature of Financial Management
      2. Evolution of Financial Management
      3. Functions and Responsibilities
   2. The Goal of the Firm
      1. Profit Maximization
      2. Wealth Maximization
      3. Shareholder Value Creation
      4. Stakeholder Perspective
   3. Agency Theory and Corporate Governance
      1. The Agency Problem
         1. Principal-Agent Relationship
         2. Conflicts of Interest
         3. Costs of Agency Problems
      2. Mechanisms for Corporate Governance
         1. Board of Directors
         2. Executive Compensation
         3. Ownership Structure
         4. Regulatory Oversight
         5. Market for Corporate Control
   4. Key Functions of a Financial Manager
      1. Investment Decisions
      2. Financing Decisions
      3. Dividend Decisions
      4. Liquidity Management
      5. Risk Management
   5. Relationship to Other Business Disciplines
      1. Relationship to Accounting
         1. Financial Reporting
         2. Managerial Accounting
      2. Relationship to Economics
         1. Microeconomic Principles
         2. Macroeconomic Factors
      3. Relationship to Marketing
         1. Sales Forecasting
         2. Pricing Strategies
      4. Relationship to Operations
         1. Production Planning
         2. Supply Chain Management