International Finance - Strategies - Essay Example

Only on StudentShare

Extract of sample
International Finance - Strategies

The more company ability to generate cash, the more it can distribute to its share holders. In short maximizing share holders wealth is equivalent to maximizing company's price
In order to attract the capital equity easily, many companies focus more on establishing share holder value. Capital equity is especially sensitive in those companies which are seeking to grow, and operates in a risky environment.
The profit margin varies from business to business as the nature and size of the business requires different kinds of resources. The business needs resources for its development and each of this development has a cost to bear. No matter what type of business is your need human and financial resources needed to establish it. It is utmost responsibility of management of any company to provide quality resources at reasonable costs because they play vital role in the business.
Basically reduction in costs or expenses leads to the increase in the current income. Increase in current income means high profit margins. High profits margins brings high yield for the Share holders in the form of dividends and capital restructuring. ...
Download paper


Basically a share holder is the person, providing equity capital to any company and in return owns the company to the extent of his shares. As the partial owners, the stake holders share the profit and losses of the company in proportion to their share.
As the share holders are the legal owners of the company, therefore management has the fiduciary obligation to act in the best interest of the share holders…
Author : ubaldo34

Related Essays

International Corporate Finance
A comparative analysis of the pros and cons of doing business in both of the countries has also been provided, along with recommendations on the market that the Flying Wombat should target. An appendix is present for easy reference and a bibliography is also present at the end of the report.
11 pages (2761 words) Essay
Payments and Finance in International Trade
In sharp contrast to the results, we find that liberalization has, on average, robust positive effects on growth, openness and investment rates within countries. We have some examples of Trade Liberalization (Arnold, 2007).
17 pages (4267 words) Essay
International Finance and Internet
Countries reacted by restricting movements of capital and establishing fixed exchange rates. Starting from 1973, industrial countries began to reduce restrictions on capital and exchange rates were driven by forces of competition between markets.
20 pages (5020 words) Essay
Finance and Growth Strategies Essay
The results are shown in Table 1.
13 pages (3263 words) Essay
Sovereign wealth funds. International Finance
These funds’ management is separated from official management of foreign currency reserve. The aim of SWFs among others is to manage government wealth so that funds do not remain static thus balancing investment with savings. The SWFs as a government-based investment strategy may involve the buying of shares in profit making organization or the taking over of a foreign based company, foreign direct investment, purchase of stakes in financial firms, long-term government bond amongst others. This process has resulted in a well recognized trend in monetary trade, foreign currency policy, and...
8 pages (2008 words) Essay
Finance & Growth Strategies
The risk can be greatly reduced by holding diverse security portfolios of various industrial sectors. Good performance of other companies in the portfolio would negate the effect of bad performance of some of the companies. Since the risk is diversifiable investors would not be able to demand a premium on investment due to the unsystematic risk.
12 pages (3012 words) Essay
International Finance
inexpensive as compared to their foreign counterparts, although for a nation to attain this artificially, they have to trade their own currency by borrowing against the countrys assets to pay for another countrys currency. If exports or all investment is in high demand, a nations currency will increase in value due to the demand for that currency to fund exported commodities, services, as well as investment.
7 pages (1757 words) Term Paper
Got a tricky question? Receive an answer from students like you! Try us!