Posts

Global Financial Crises and Their Impact on Corporate Strategy

-
Image
  Global Financial Crises and Their Impact on Corporate Strategy ❖ Introduction Definition of financial crisis : A situation where financial assets lose a large part of their nominal value rapidly. Types: Banking crisis, currency crisis, debt crisis. ❖ Key Historical Financial Crises The Great Depression (1929) The Great Depression was the worst economic crisis in modern history , beginning in 1929 and lasting through the 1930s . It led to massive unemployment, bank failures, and a global economic collapse.   Major Causes of the Great Depression Stock Market Crash of 1929: In October 1929, the U.S. stock market collapsed after years of speculative trading. Millions of investors lost their savings, leading to a sharp decline in consumer and business confidence. Overproduction and Underconsumption: Industries and farms produced more goods than people could afford to buy. This cause...
Read more

Corporate Governance & Ethics in Finance

-
Image
  Corporate Governance & Ethics in Finance 1. Definition: Corporate Governance refers to the system by which companies are directed and controlled. It involves the relationships among a company’s management, its board, its shareholders, and other stakeholders. Corporate governance provides the structure through which the objectives of the company are set, the means of attaining those objectives, and monitoring performance. Ethics in Finance refers to the moral principles and standards that guide behavior in the financial world. This includes integrity, honesty, transparency, fairness, and accountability in financial decision-making and transactions.   2. Importance and Advantages of Corporate Governance and Ethics in Finance: Accountability: Ensures management is accountable to stakeholders. Transparency: Builds trust through accurate and open disclosure of financial information. Risk Management: Identifies, evaluates, and mitigat...
Read more

Overview of Strategic Finance & Its Role in Corporate Strategy

-
Image
  Overview of Strategic Finance & Its Role in Corporate Strategy What is Strategic Finance? Strategic Finance refers to the long-term financial planning and decision-making processes that help organizations align their financial resources with overall business objectives. It involves analyzing financial performance, forecasting future growth, managing risks, and optimizing capital allocation to maximize shareholder value. Role of Strategic Finance in Corporate Strategy Aligning Finance with Business Goals: Ensures that financial decisions support overall corporate objectives. Capital Allocation & Investment Planning: Helps businesses decide where to invest for maximum returns. Risk Management: Identifies and mitigates financial risks that may affect profitability. Corporate Valuation: Enhances company value through strategic acquisitions, mergers, and efficient capital management. Performance Monitoring: Uses financial metri...
Read more

Financial Markets & Investment Strategies

-
Image
  1. Introduction to Financial Markets Definition: Financial markets are systems that allow people to buy and sell financial instruments such as stocks, bonds, and derivatives. They are essential for mobilizing savings, facilitating investment, and promoting economic growth. Importance for Business Students: Helps understand how businesses raise capital. Improves decision-making in investment and financial planning. Essential for careers in finance, banking, and entrepreneurship.   2. Stock Markets, Bond Markets & Alternative Investments A. Stock Markets A stock market enables investors to buy ownership in companies through shares. Formulae: Market Cap = Share Price × No. of Shares Dividend Yield = (Annual Dividend ÷ Share Price) × 100 P/E Ratio = Price per Share ÷ EPS Benefits for Business Students: Understanding equity financing. Learning how market valuation affects business reputation. Solved Question 1: A ...
Read more