UNIVERSITY OF PIRAEUS
DEPARTMENT OF BANKING & FINANCIAL MANAGEMENT
GRADUATE PROGRAM ΙN BANKING & FINANCE
Course: Financial Management (Χρηματοοικονομική Διοικητική)
Professor Emmanuel D. Tsiritakis, Office 331
Office Hours: Monday 16:00-18:00, Thursday 18:00-19:00 or by appointment
Phone: 210- 414 2187
The scope οf Financial Management
Every key decision made by a firm’s managers has important financial implications. Management daily faces questions like the fol1owing: Will a particular investment be successfu1? Where will the funds come from tο finance the investment? Does the firm have adequate cash or access to cash to meet its daily operating needs? Which customers should be offered credit? How much inventory should be held? Etc.
Financial Management involves the investment, financing, and dividend decisions οf the firm. The.general1y accepted goal of the firm is value maximization. Financial managers must plan fοr, acquire, and use funds in a way that makes the maximum contribution to efficient use of resources. This requires familiarity with the financia1 markets from which funds are drawn as wel1 as with the products/markets in which the
firm operates. All financial decisions involve a1temative choices between internal versus externa1 funds, long-term versus short-term projects, long-term versus short-term financing, etc.
Decisions relating to value maximizatiοn involve a trade-off between risks and returns, and must be made within the framework of socially responsible behaviour as well in relation to dynamic external environments, both domestic and international. Lastly, the firm’s goal of value maximizatiοn is subject to the possible existence of conflicts between owners and managers, as well as between owners and creditors of the firm.
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- Brealey Richard A., Myers Stewart C., and Allen Franklin [BMA],
Principles of Corporate Finance, 10th ed., McGraw Hill, 2011
- Damodaran Aswath, [D], Applied Corporate Finance, 3rd edition, WILEY, 2011