Financial Managers Research Papers
Research papers on financial managers illustrate the roll of the financial manager in organizations. Paper Masters will custom write a business research paper on the roll of financial managers.
While the terms “accountant” and “financial manager” are often used synonymously in the literature, the reality is that both positions carry with them markedly different roles. As such, there is an impetus to delineate between the two so that the true function of each position can be effectively elucidated. To this end, a research paper on financial managers should be an investigation that seeks to provide a thorough definition of both the role of the accountant and the financial manager. By defining both positions and the specific services they provide to the organization it will be possible to demonstrate that these positions are indeed separate entities.
Financial Manager in Shareholder Value
Reviewing what has been written about the role of the financial manager in maximizing shareholder value, it becomes clear that this role is best served when the financial manager is given the opportunity to focus solely on what can be done to increase the profits of the organization over a period of time. What this effectively suggests is that shareholders expect the financial manager to take the necessary steps to ensure that their investment yields considerable return.
Despite the fact that financial mangers are typically given the green light to ensure the financial success of the organization, research from Paper Masters notes that the changing climate of the organization has created a situation in which the financial manger must consider outside sources of influence that may impact the development of their role overall. In particular, research papers argue that ethical considerations have become a pervasive issue for the development of the organization. Thus, financial mangers must not only do what is financially best for the organization, but also they must make these decisions in an ethical framework that may ultimately impact the financial success of the organization.
To illustrate this point, one only needs to consider the following scenario. The financial manager has determined that the organization could increase profits by 50 percent over two years if it relocates its operations to South Korea. While the first response of the financial manager would be to make this change, it is clear that many shareholders may not agree with the ethics involved in this specific situation. Many would argue that it is not fair to exploit the workforce of a developing nation, just so an already profitable organization can make even more money. With this being the case, the role of the financial manger effectively changes. Instead of looking at financial decisions from the overall benefits that can be garnered, the financial manager must also consider the ethics behind the decision.
In many respects, the issue of ethics obfuscates the process of financial decision making. While the financial manager may believe that this sole responsibility is to make the best financial decisions for the organization, the question becomes one of how these decisions must be framed. In the above situation, the financial manager may be able to show that increasing profits by 50 percent is indeed the best way to go. However, if the organization makes this change and it is viewed as unfavorable to the public, it is possible that the organization may lose ground in making this decision.
Unfortunately, in most organizations, the viewpoint of the financial manager will not be commensurate with those of employees and stockholders. Employees will expect that financial managers will do the following:
- Financial managers will make the best decisions for the organization, keeping in mind the importance of the workforce.
- Stockholders, on the other hand, will want the financial manager to maximize their profits, in many cases regardless of the impact that decisions have on employees.
Clearly, this places the financial manager in a precarious position. With so many competing interests, the question that arises is how the financial manager is to ensure the best interests of all shareholders in the organization.
In answering this question, it becomes clear that the financial manager must be able to effectively see all of the potential problems and solutions that may arise in the short and long-term. Using this information, the financial manager needs to make decisions that are in the best interests of ensuring the financial stability of the organization. In some cases this will mean the protection of labor; in other cases, it will mean layoffs to ensure that the organization remains financially viable. Regardless of the situation, the financial manager must ultimately do what is best for the organization. In doing so, the financial manager will have to make difficult decisions that will not be supported by all shareholders.