Mangement

Earning the highest possible profit for the company is sometimes suggested to be important financial management for the company. How the earning is valued by the investor is a main measurement of performance. Setting a goal for the firm is a key to financial management. The financial management takes all considerations of important the firm has increased or decreased its earnings, the reliability, the quality, and the risk of it; the importance of financial management and deliver them into the decision on the firm’s overall valuation. The financial management may also attempt to take full advantage of the wealth of the shareholders of the firm by getting the highest value. However, the stock prices are not directly controlled by the manager since it is generally affected by the firm’s future and the current economic environment. The management can be more interested in maintaining the tenure than maximizing the stockholder’s wealth. The firm’s social responsibility is maximized by the consistence of the shareholder’s wealth by adapting to the policies that could maximize the values in the market. By adapting to the policies that could maximize the values in the market, it could attract the firm’s capital by providing employment along with other benefits to the community. Ethical behavior is another importance to the company because it can create an invaluable reputation and become more visible than others in the pursuit of the goals. Those businesses that create a good ethical behavior for the company provides good citizens in the community, profitable, and can save money.