Field Of Financial Management Research Articles

A roadmap of financial measures for IT project ROI

Organizations have spent billions of dollars in implementing and subsequently repairing, removing, or altering enterprise-wide IT systems for managing finances, customer relationships, human resources, manufacturing resources, and supply chains. Of all IT systems, those for enterprise resource planning (ERP) are among the most difficult to implement. These products provide turnkey automated processes while sharing common data across an organization. Unsuccessful or grossly underestimated efforts to implement ERP tools have resulted in massive financial failures and corporate process disarray for many organizations. Various financial techniques can help organizations select the right projects and better manage the implementation of enterprise systems. The roadmap describes key practices in the fields of financial management and quantitative analysis.

Business failure prediction using the UTADIS multicriteria analysis method

Business failure prediction is one of the most essential problems in the field of financial management. The research on developing quantitative business failure prediction models has been focused on building discriminant models to distinguish among failed and non-failed firms. Several researchers in this field have proposed multivariate statistical discrimination techniques. This paper explores the applicability of multicriteria analysis to predict business failure. Four preference disaggregation methods, namely the UTADIS method and three of its variants, are compared to three well-known multivariate statistical and econometric techniques, namely discriminant analysis, logit and probit analyses. A basic (learning) sample and a holdout (testing) sample are used to perform the comparison. Through this comparison, the relative performance of all the aforementioned methods is investigated regarding their discriminating and predicting ability.

On the use of knowledge-based decision support systems in financial management: A survey

This paper presents an extended survey of the application of knowledge-based decision support systems (KBDSSs) in financial management. KBDSSs originated from the combination of decision support systems with expert system (ES) technology. Thus, initially, the implementation of both decision support systems and ESs in several fields of financial management is discussed. The existing problems and limitations of these two approaches are outlined, and the new methodological framework based on the use of KBDSSs and its application in financial management are presented.

Reply to Reed and Swain

Reply to Reed and Swain

Risk assessment and information systems

The paper discusses types of risk, problems and failure experienced in developing and implementing information systems. A broad definition of risk, in terms of risk factors and risk outcomes, is put forward. Frameworks for risk classification at the investment appraisal stage are assessed. A framework for analysing risk is then applied to five cases. The paper argues the merit in interpreting risk operationally as not just inherent in certain structural features of the environment or of a project, but also arising as a result of distinctive human and organizational practices and patterns of belief and action. More comprehensive frameworks for risk assessment are needed to replace the all too frequently encountered truncated forms of assessment used in work organizations. Whether the objective is to study and/or influence risk levels in IT-related change, the need is to apply as much learning from organization studies as from the more traditionally utilised project management, operational research and financial management fields.

Developing International Hospitality Financial Management

ABSTRACT The increasingly international character of the hospitality industry poses challenges and opportunities to teachers and researchers in the field of financial management. AHFME, being an organization of financial management teachers and researchers, could be the ideal forum for developing and organizing knowledge about international aspects of financial management.

Should MBA students study the Theory of Finance?

AbstractStudents come to business schools to gain the skills necessary to be good general managers. This paper poses the question as to whether there is a benefit to such students to be taught theory—and in particular the theory of finance. After briefly reviewing the field of financial management, the concept of a theory is discussed. This is followed by some thoughts on why, in general, theories should be studied. The theory of risk and return is then presented as a conceptual framework for the study of finance, and it is shown how important this framework is for students of management. Some comments follow on the gap between theory and practice, and finally it is postulated that finance, when taught in a risk-return framework, may be considered to be the key subject on the MBA programme.

A Perspective on Management Education

I appreciate this opportunity to address you as President of the Financial Management Association and I am honored to be the first executive from a large company to lead this group. As many of you know, I have been an active member of FMA almost from its beginning. I sympathized with the FMA's original objectives especially as they related to encouraging pertinent research in the field of financial management and improving communications between business and the academic world. Those objectives were valid 12 years ago. They are still valid and appropriate today. In its first 11 years, the FMA has developed far beyond its original expectations with regard to membership, financial stability, journal development and annual meetings attendance. The FMA's 4,600 members and more than 1,000 participants in this year's meeting attest to that solid growth. On the other hand, I believe we have fallen short of our expectations with regard to the linkage between the academic world and business. It is to this situation that I would like to address my remarks today. As some of you know, my background is somewhat different from that of most business people. I have a PhD in finance, have taught for a year, have worked for three Fortune 100 companies and have been Vice President of three functional areas: Treasury, Human Resources and Corporate Development. In addition, I have been active in recruiting, company training and development, and I try to stay in touch with students and faculty by teaching several classes at two or three business schools each year. Perhaps this provides me a unique vantage point or perspective from which to shed some light on the field of finance and management education in general.

A MICRO‐ECONOMETRIC INVESTIGATION OF MULTI‐OBJECTIVE FIRMS

Research in the field of financial management has traditionally been predicated on the assumption that the objective of the corporate entity is maximization of its common stock market price. Since common stock market price is easily observed and measured, many data have been collected. Thus, empirical investigations of the determinants of equity values have been straightforward. Indeed, Keenan has noted [19, p. 243]: