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.