财务管理专业英语IntroductiontoFinancialManagement课件

1、Introduction to Financial Management Chapter 11Introduction to Financial ManaChapter OutlineFinance: A Quick LookFinancial ManagerForms of Business OrganizationThe Goal of Financial ManagementThe Agency Problem and Control of the CorporationFinancial Markets and the Corporation2Chapter OutlineFinanc

2、e: A QuicBasic Areas Of FinanceCorporate financeInvestmentsFinancial institutionsInternational finance3Basic Areas Of FinanceCorporatInvestmentsWork with financial assets such as stocks and bondsValue of financial assets, risk versus return and asset allocationJob opportunitiesStockbroker or financi

3、al advisorPortfolio managerSecurity analyst4InvestmentsWork with financialFinancial InstitutionsCompanies that specialize in financial mattersBanks commercial and investment, credit unions, savings and loansInsurance companiesJob opportunities5Financial InstitutionsCompanieBanks in ChinaCentral bank

4、: PBC ruling rate of interest; treasury; foreign reserve; settlementThree policy banks: The export-import bank of China; China development bank; Agriculture development bank of ChinaFour state-owned banks: CBC(CCB); BC; ABC; ICBCStock-holding banks: 6Banks in ChinaCentral bank: PBFormer five top inv

5、estment banksGoldman SachsMorgan StanleyLehman Brother Merrill LynchBear Steam7Former five top investment banInternational FinanceThis is an extended area of the above areas discussed in the international scope.It may allow you to work in other countries or at least travel on a regular basisNeed to

6、be familiar with exchange rates and political riskNeed to understand the customs of other countries and speaking a foreign language fluently is also helpful8International FinanceThis is aFinancial managementSome important questions that are answered using financeWhat long-term investments should the

7、 firm take on?Where will we get the long-term financing to pay for the investment?How will we manage the everyday financial activities of the firm?9Financial managementSome imporFinancial ManagerFinancial managers try to answer some or all of these questionsThe top financial manager within a firm is

8、 usually the Chief Financial Officer (CFO)Treasurer oversees cash management, credit management, capital expenditures and financial planningController oversees taxes, cost accounting, financial accounting and data processing10Financial ManagerFinancial manFinancial Management DecisionsCapital budget

9、ing (investment decision)What long-term investments or projects should the business take on?Capital structure (financing decision)How should we pay for our assets?Should we use debt or equity?Working capital managementHow do we manage the day-to-day finances of the firm?Long-term decisionsShort-term

10、 decisions11Financial Management DecisionsForms of OrganizationThree major forms in the united statesSole proprietorshipPartnershipGeneralLimitedCorporationLimited liability company “Big four”12Forms of OrganizationThree majSole ProprietorshipAdvantagesEasiest to startLeast regulatedSingle owner kee

11、ps all the profitsTaxed once as personal incomeDisadvantagesLimited to life of ownerEquity capital limited to owners personal wealthUnlimited liabilityDifficult to sell ownership interest13Sole ProprietorshipAdvantagesDPartnershipAdvantagesTwo or more ownersMore capital availableRelatively easy to s

12、tartIncome taxed once as personal incomeDisadvantagesUnlimited liabilityGeneral partnershipLimited partnershipPartnership dissolves when one partner dies or wishes to sellDifficult to transfer ownership14PartnershipAdvantagesDisadvantCorporationAdvantagesLimited liabilityUnlimited lifeSeparation of

13、ownership and managementTransfer of ownership is easyEasier to raise capitalDisadvantagesSeparation of ownership and managementDouble taxation (income taxed at the corporate rate and then dividends taxed at personal rate)15CorporationAdvantagesDisadvantGoal Of Financial ManagementWhat should be the

14、goal of a corporation?Maximize profit?Minimize costs?Maximize market share?Maximize the current value of the companys stock?Does this mean we should do anything and everything to maximize owner wealth?16Goal Of Financial ManagementWhThe Agency ProblemAgency relationshipPrincipal hires an agent to re

15、present their interestStockholders (principals) hire managers (agents) to run the companyAgency problemConflict of interest between principal and agentManagement goals Agency cost: direct cost and indirect cost17The Agency ProblemAgency relatManaging ManagersManagerial compensationIncentives can be

16、used to align management and stockholder interestsThe incentives need to be structured carefully to make sure that they achieve their goalCorporate controlProxy fightThe threat of a takeover may result in better management. caseOther stakeholders18Managing ManagersManagerial coCase of takeoverCase 1

17、: hostile takeoverAcquiring firm: ShengdaTarget firm: Sina2005.2,19.5% acquisition on Nasdaq2005.3, anti-takeover: poison pill( shares dilution plan ) 19.5%-2.28%Come to a deadlockCase 2:Acquiring firm: Group DanoneTarget firm: WahahaJoint contribution from 1996: Danone 51%; Wahaha 49%Bid a price: 4

18、 billion Rmb2009 settle out of court: Danone 51% shares sold for 0.3 billion Euros19Case of takeoverCase 1: hostilFinancial MarketsCash flows to the firmClassification:1. Financing period: currency market;capital market2. Trading object: spot market; futures market; option3. The first issue of security: primary