Controllable by Management

• profitability
• having a good liquidity and reasonable
leverage position
• dividends
• competent management which affects the
company’s operating efficiency
• coming up with corporate plans that
improve the business prospects of the
company
 Uncontrollable External Factors
• macroeconomic conditions
• political stability
• prospects of the industry where the
company operates
• general market sentiment
• flow of foreign funds invested in the
Philippine stock market
Financial management deals with
decisions that are supposed to maximize
the value of shareholders’ wealth.
- These decisions will ultimately affect
the markets perception of the company
and influence the share price.
- The goal of financial management is to
maximize the value of shares of stocks.
• Managers of a corporation are
responsible for making the
decisions for the company that
would lead towards shareholders’
wealth maximization.