The Evolution of Financial Management
- Early 1900 : instrument, institution, and procedures of capital market and money market
- Around 1920 : focus on security and banking sector, and investment in common stock
- Around 1930 : focus on liquidity, debt, regulation, bankruptcy, reorganization
- Early 1940 and 1950 : internal analysis, planning and controlling cash flow
- End of 1950 : capital budgeting, valuation, and dividend policy
- Around 1960 : development of portfolio theory
- Around 1970 : CAPM model and APT model that can be used to value the financial assets
- Around 1980 : focus on uncertainty, asymmetric information, financial signaling
- Around 1990 : multinational financial management, behavioral finance, enterprise risk management, good corporate governance
Categories: Finance
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