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Who makes those decisions?

Financial Manager

Who is the Financial Manager?


Financial manager: responsible for a significant corporate investment or financing decision. The financial managers in large corporations: Chief Financial Officer (CFO): financial policy, corporate planning Treasurer: cash management, raising capital, banking relationships Controller: preparation of financial statement, accounting, taxes
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The role of the financial manager


The financial manager stands between the firms real assets and the financial markets. They have two decisions to make: Capital Budgeting Decision Financing Decision Note: because of the importance of many financial issues, ultimate decisions often rest by law or by custom with the board of directors.
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The role of the financial manager


2 Firms Operations 3 4a 4b 1 Financial Markets

1. Cash raised from investors 2. Cash invested in firm

3. Cash generated by operations


4a. Cash reinvested 4b. Cash returned to investors
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