Corporate Governance and Financial Management

For more than a decade, corporate governance has been a phenomenal topic being discussed by academics and practitioners as corporate failures and the global financial crisis demonstrates that complying with good corporate governance (GCG) best practices alone neither gives any guarantee for a company to achieve the potential benefits offered by GCG practices, nor protects a company from corporate failures. This comprehensive study integrates corporate governance, corporate finance and accounting in the formulation of sound financial management strategies. Offering an integrated solution for achieving GCG practices, this book adopts value-based management (shareholder value maximisation) and stakeholder approaches. The model shown in the book is powerful as it applies a free cash flow (FCF) valuation and financial ratio analysis, incorporates the external governance mechanisms reflected by capital market and regulatory environments, such as tax policy, accounting standards and practices, industry practices and market risks and examines how internal governance instruments such as leverage, executive compensation and risk management practices discipline managers in the process of shareholder value maximisation.