THE ROLE OF CORPORATE FINANCE MANAGEMENT IN THE POLICY MAKING DECISION OF A CORPORATE BODY.A CASE STUDY OF HALLMARK ASSURANCE COMPANY LIMITED OWERRI IMO STATE BRANCH. A RESEARCH PROJECT MATERIAL ON ACCOUNTING
This project posed at x-raying the degree, of “the role of corporate finance management in the policy making decision of a corporate body” making reference to Hallmark Assurance company limited. Financial management is the management activities concerned with raising of capital, planning cash and credit requirements, including the effective control of financial resource. Some though to were given to financial management to provide skilled planning, control and executive of financial activities. The practicing managers are interested in this subject because among the most crucial decisions of the firm are those which related to finance. The financial manager must take steps to ensure the funds will actually be available and committed to the firm. The financial manager is usually responsible for gathering and analyzing the relevant information making forecast of profit level to estimate profits form future sell, the firm must be aware of current cost and likely changes in the ability of the firm to sell its product as planned.
– forecasting and profit planning:
financial planning and control, financial ratio analysis, working capital policy stocks, cash receivable, marketable securities financial risk and structure, medium, short and long term sources of funds, valuation of stocks and cost of capital, internal financing, curricle policy and techniques for capital investment analysis.
The issue of whether these stated roles of financial managers are executed or not of financial managers or not in a case to be bodies and also satisfy the curiosity of the general reaching public who many have the desire to become acquainted with the role of corporate, finance management in policy making decision in our corporate firms.
1.0 INTRODUCTION AND HISTORICAL BACKGROUND TO THE STUDY
Financial management involves all activities of a financial manger concerned with raising of capital, planning cash and credit requirements including the effective control of financial resource of a corporate body.
The activities could be segregated as follows
i) Converting of forecast into plans and budgets
ii) Planning the appropriate capital structure
iii) Raising cash from outside the business
v) Investing surplus funds
vi) Controlling cash balances and flows in accordance with plans and with changing circumstance.
Gray etal (1977)
With the emergence of finance as a separate field of study the emphasis was more or less on legal matters such as
Since most business firm’s objectives are profit maximization the search for profitability under imperfect/perfect competition continues to be the induction to improve the wealth of the owners.
This urge to implore and maximize, wealth has led to the study of financial management of which attribute factors can be socialized as follows:
b. Business growth
c. Research and development expenses
e. Competitor etc.