Finance 330

Advanced Financial Management

The Evolution of Financial Management

  • Early 1900 : instrument, institution, and procedures of capital market and money market
  • Around 1920 : focus on security and banking sector, and investment in common stock
  • Around 1930 : focus on liquidity, debt, regulation, bankruptcy, reorganization
  • Early 1940 and 1950 : internal analysis, planning and controlling cash flow
  • End of 1950 : capital budgeting, valuation, and dividend policy
  • Around 1960 : development of portfolio theory
  • Around 1970 : CAPM model and APT model that can be used to value the financial assets
  • Around 1980 : focus on uncertainty, asymmetric information, financial signaling
  • Around 1990 : multinational financial management, behavioral finance, enterprise risk management, good corporate governance
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    June 9, 2008 - Posted by | Corporate Finance

    1 Comment »

    1. I recently came accross your blog and have been reading along. I thought I would leave my first comment. I dont know what to say except that I have enjoyed reading. Nice blog.

      Tim Ramsey

      Comment by Tim Ramsey | June 9, 2008 | Reply


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