Financial Management: An Introduction

5 Pages Posted: 30 May 2017

See all articles by Michael J. Schill

Michael J. Schill

University of Virginia - Darden School of Business

Abstract

This technical note provides an overview of Financial Management. It is intended as a note to accompany the opening session of case-based course in corporate finance or financial management, as a way of orienting students as to what they should expect and not expect from such a course.

Excerpt

UVA-F-1742

Nov. 14, 2016

Financial Management: An Introduction

While there are many skills that are important for business managers, this note makes the case that financial management is one of the “must have” skills. This note provides an overview of financial management principles and answers to common questions and misconceptions about the topic. In so doing, the note motivates the relevancy of a strong background in financial management.

Financial management provides a set of principles and tools that help managers accumulate and allocate capital in a firm. A firm's capital is the money the firm needs to carry out its full set of business operations. The objective that governs financial management decisions is that of economic value creation. For any business decision, value is created when the total value of the benefits accrued exceeds the total value of the resources expended. As business managers embrace the principles of financial management they become skilled at appreciating the value implications of their business decisions.

Question 1. Isn't financial management only helpful to those who interact regularly with investors and financial markets?

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Keywords: corporate finance introduction, financial management, orientation, first-principles

Suggested Citation

Schill, Michael J., Financial Management: An Introduction. Darden Case No. UVA-F-1742, Available at SSRN: https://ssrn.com/abstract=2974555 or http://dx.doi.org/10.2139/ssrn.2974555

Michael J. Schill (Contact Author)

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States
434-924-4071 (Phone)
434-243-7676 (Fax)

HOME PAGE: http://www.darden.virginia.edu/faculty/schill.htm

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