FINANCIAL
MANAGEMENT ROLE
Financial management is the
management of the financial functions . Financial functions include fantasize
obtain funds ( raising of funds ) and how to use these funds ( allocation of
funds) . Financial managers are concerned with the determination of the amount
of eligible assets from investments in various asset and choose the sources of
funds to finance these assets . To obtain funds , financial managers can obtain
it from inside and outside the company . Sources from outside the company comes
from the capital market , could take the form of debt or equity capital .
Financial management can be defined from the duties and responsibilities of the
financial manager . The principal tasks of financial management include
investment decision , financing and business operations of a company dividend ,
thus the task of the financial manager is to plan to maximize the value of the
company . Another important activity that should be done regarding the
financial managers of four aspects:
Financial managers must
collaborate with other managers who are responsible for the general planning of
the company.
managers should focus on investment
and financing decisions , and various things related to it
Financial managers must work with managers in the
company so that the company can operate as efficiently as possible
Financial managers must be able to connect the company with the financial
markets , where companies can obtain funds and securities companies can be
traded .
Another important aspect of the company's goals and objectives of financial
management is the consideration of social responsibility which can be viewed
from four aspects , namely :
If financial management led to the share price , it
needs good management and efficient according to consumer demand . Successful
companies always put efficiency and innovation as a priority , resulting in a
new product , invention of new technologies and the expansion of employment
External factors such as environmental pollution ,
product safety assurance and safety become more important to consider .
Fluctuations in all levels of business activity and the changes that occurred
in the conditions of financial markets is an important aspect of the external
environment .
Cooperation between industry and government is needed
to create regulations governing corporate behavior , and vice versa company
comply with these regulations . The company's goal is basically corporate value
by technical considerations . Basically the goal of financial management is to
maximize corporate value . But behind these objectives is a conflict between
business owners with funding providers as creditors . If the company goes well
, the company's stock value will increase , while the value of corporate debt
in the form of bonds is not affected at all . So it can be concluded that the
value of stock holdings could be an appropriate index to measure the level of
efektifitias company . Based on this reason , the goal of financial management
is expressed in the form of stock ownership enterprise value maximization , or
stock price maximization . Aim to maximize the stock price does not mean that
managers should strive to seek increase in value of the shares at the expense
of bondholders.
