About this Economics, Econometrics and Finance article
Corporate Finance by Ștefan Cristian Gherghina is a Economics, Econometrics and Finance article available to read on EtoBox.
Corporate finance deals with the financing and investment decisions set by the corporations' management in order to maximize the value of the shareholders' wealth. However, due to the separation of ownership and control, managerial goals are pursued at the expense of the shareholders. Stockholder prosperity is enlarged through financial managers making rational investments, financing, and dividend resolutions. Moreover, for the longstanding success of the corporation, the board should be operative and be jointly accountable. Corporate finance is concerned with the efficient and effective administration of the company funds so as to accomplish the aims of that business, comprising forecasting and monitoring the supply of capital (where funds are brought up), the distribution of funds (where resources are directed), and the supervision of resources (whether funds are being used effectively or not) (Watson and Head 2016). Corporate finance is grounded on three principles, namely the investment principle (establishes where corporations invest their funds), the financing principle (manages the mixture of funding-debt and equity-laid down to finance the investments), and the dividend pri
It is typically read by researchers, students, and practitioners in Economics, Econometrics and Finance.
- Author
- Ștefan Cristian Gherghina
- Publisher
- MDPI AG
- Published
- 2021
- Language
- EN
- Field
- Economics, Econometrics and Finance (Social Sciences)