Corporate financial policy Students Name Institution Date Corporate financial policy Introduction The financial policy for corporations is used to define the overall approach of the companies in the management of its decisions financially. The strategy of finances for every company is made up of a capital of budget policy of financing and a dividend policy. Various companies in the whole world have successfully applied the financial policies however; some of them have not succeeded. With corporate financial policies corporations have to deal with various aspects of corporate finance including corporate governance management of risks strategies financial distress mergers and acquisitions among other aspects to be discussed in this paper. This paper also discusses the interrelationship that occurs between the various aspects of corporate finance as most of these aspects need to be implemented together. Over the past decade the trends to set corporate financial policies have been on change the financial objectives of the company. Without the right corporate governance right assess of risks tolerance level and with strategies to cope with any change affecting the company then the company may suffer from bankruptcy. These three aspects also incorporate other aspects of corporate finance which include the capital structure policy of dividends management of cash mergers and acquisitions and finally the distress of finances. All these aspects are interrelated all to achieve the company’s financial goal to maximize the shareholder value. References Damodaran A. (1996). Corporate finance. Wiley.Williamson O. E. (1988). Corporate finance and corporate governance. The journal of finance 43(3) 567-591.Cornell B. & Shapiro A. C. (1987). Corporate stakeholders and corporate finance. Financial management 5-14.Mayer C. (1988). New issues in corporate finance. European Economic Review 32(5) 1167-1183. Faulkender M. & Wang R. (2006). Corporate financial policy and the value of cash. The Journal of Finance 61(4) 1957-1990. Guthmann H. G. (1955). Corporate financial policy. [...]
Q1. While the cases were chosen to highlight and discuss one aspect of corporate financial policy, they often show the interaction between different aspects of finance. Corporate governance, risk management, and strategy; three topics we discuss in this class, imbue the other topics, capital structure; dividend policy; cash management; mergers and acquisitions; and financial distress. Write a 3,500 to 5,000 (7-10 pages) essay on the interrelationship between the topics. Illustrate the your essay with examples from the cases. Your essay should be double-spaced. Use the APA guidelines for all citations and references.