Finance + Quantitative

Leadership
Ashley Daniels
Siena Heights University

Questions:

1. What does the following statement mean: The art of accounting and
finance is the art of using limited data to come as close as possible to an
accurate description of how well a company is performing., in an
organizational context?

2. What are some of the biases in the numbers, and how do they contribute
to the roadblocks of financial savvy?

Art of Finance

Is finance an art or a science? Are all numbers in the company black and
white?

Human emotion and decisions

Behavioral Finance

Behavioral Finance as 'the study of how humans interpret and act on

information to make informed investment decisions' (Jahanzeb et al. 2012).

Judgement calls

Academic Advising

Bias

What is bias?

Dictionary.com tells us that it is

aparticulartendency,trend,inclination,feeling,oropinion

Is it possible to NOT be bias in Finance?

Valuation Figuring out how much a company is worth

3 different methods to figure out valuation. Each method injects a bias into the numbers

The accountant and finance professional labor to give the most accurate picture
possible, but they know they will never be able to capture exact numbers.
(Berman & Knight, 2013)

Financial Intelligence

What have I gathered?

Employees, leaders, managers understand what is going on in the organization financially

Why?

Use the information to make sound decisions as a leader

Bias, but professional identify

Payroll

Profitability - sales

Teamwork

Having a strong financial literacy awareness program in a company, workers will feel
more involved and committed. Employees will better understand of what they are a
part, what the organization is trying to achieve, and how they can affect the results.
Therefore, the authors argue that employee morale should improve as trust between
leaders and followers solidifies. (Morrison, 2006).

References

Berman, K. & Knight, J. (2013). Financial Intelligence: A Managers Guide to

Knowing What the Numbers Really Mean. Boston, MA: Harvard
Business
Review Press.

Jahanzeb, A., Muneer, S., & Saif-ur-Rehman. (2012). Implication of behavioral

finance in investment decision-making process. Information
Management
and Business Review, 4(10), 532-536. Retrieved from
http://
search.proquest.com/docview/1326738265?accountid=28644

Morrison, J. L. (2006). Financial intelligence: A manager's guide to knowing

what the numbers really mean. Journal of Education for
Business, 81(6),
346-348. Retrieved from
http://search.proquest.com/docview/202822002?
accountid=28644