SUBMITTED BY GULVEEN KAUR RESEARCH SCHOLAR MEANING OF FINANCE
Finance refers to management of large amounts of
money, especially by the government and large corporations MEANING OF ACCOUNTING
Accounting is systematic and financial transactions
pertaining to a business
It is the process of summarizing, analyzing and
reporting theses transactions to oversight agencies, regulators and tax collection entities FINANCE AND ACCOUTING
The firm’s finance and accounting activities are
under the control of chief financial officer In small firms finance function is carried by controller In large firms accountants are closely involved in finance activities Accounting uses accrual concept Finance uses cash system which is under control of chief financial offficer FINANCE AND MARKETING
There are some important decisions which have to be
taken by the marketing manager There are cases where he would need the help of financial management department to know about the profitability of the firm Financial management department helps in taking decisions such as Advertising, Pricing, Inventory management ( FIFO and LIFO) MARKETING – FINANCE INTERFACE
Innovation Firm value
Brand Equity Stock returns Corporate social Systematic risks responsibility Liquidity risks Supply chain relations Cost of debt Strategic alliance Customer satisfaction EXAMPLES FROM RESEARCH PAPERS
Rao, Aggarwal and Dahlhoff (2004) study ‘ How
branding strategy affects firms value” Corporate branded firms have higher firm value than average firms EXAMPLES FROM RESEARCH PAPERS
Luo and Bhattacharya (2006) argue that
Corporate social responsibility
Higher customer satisfaction
Increases the shareholder value
EXAMPLES FROM RESEARCH PAPERS
Berk, Green and Naik (2004) say that research and
development leads to increase in the risk of the firm THANK YOU