Question

Please explain about recent two articles related manegerial finance in 500 words?

Answer 1

It speaks about the financing techniques and the their significance to the management. It is the branch of finance and focus on managerial aspects in finance. There are many articles which were discussed about this topic, for this study I have referred few articles and their interpretation is as follows:

Article; 1- Managerial incentives and corporate investment and financing decisions; A. Agarwal & GN Mandlekar: explains the relationship between the incentives realizes with the investment decisions. Most of the organizations pick the alternative investment strategies, which provide good returns at the end. But to reach the destination, it has to be achieve some other targets like cost minimization, optimum utilization of resources and finally meeting the customer expectations.

The management will concern all the resources and inputs, and finally takes a decision towards investment.

Article; 2- The determinant of capital structure choices: S Titman & RWessels, explained that, the firm which stands at less cost of capital, at the point it gets higher margins, when all the things are assumed as constant. And they also explained that, cost of capital can be used as TWO POINT ARROW, if you know how to use it, provides with good returns, otherwise it leads to losses to the firm.