Financial Services Essay

Financial Services Essay
A very warm welcome to the final issue of the Financial Services Newsletter for 2017. It is hard to believe the year is already drawing to a close!
Our holiday edition of the newsletter is one of our biggest. This month's articles will stimulate our minds by providing timely commentary on recent
regulatory developments and useful guidance on handling legal and commercial issues in practice. Let us begin with an article on the hot topic of
ICOs. ICO stands for Initial Coin Offering. Editorial board member Andrea Beatty and her co–author Daniel Taha (Keypoint Law) take us through
ASIC's recently–released guidance on ICOs, and consider how it compares with the guidance provided by other regulators internationally. The 2017
International...show more content...
This is helpful guidance that lawyers can apply in practice when advising clients. Then, let us focus on salary sacrifice arrangements relating to
contribution to superannuation. In their article "Closing the gap in the salary sacrifice regime", Gary Chau and Bryce Figot (also DBA Lawyers),
alert us to a Bill that proposes changes that will apply from July 2018. What is this Bill and what does it propose to do? Find out by reading this
informative article. I would like to welcome Leonie Chapman (LAWyal Solicitors) to the Financial Services Newsletter. Leonie is on the editorial
board of the Australian Banking and Finance Law Bulletin and she is a much–loved regular contributor. I am delighted that she is now also writing for
the Financial Services Newsletter. Leonie's first article for our readers is titled "Computing for financial services lawyers – observations from the 2017
Lexis panel discussion 'Human v Cloud'". In this article, Leonie shares three key tips that came out of a recent panel discussions regarding how legal
practitioners are coping with and implementing the changes faced by the legal profession. Relevantly, these tips might also benefit FinTechs, so don't
miss this interesting write up! Regular readers of this newsletter would know that, since 2016, I have tried to include book
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Financial Statements
CHAPTER–I
FINANCIAL STATEMENTS
LEARNING OBJECTIVES
After studying this chapter, you will be able to:
Explain the meaning of financial statements of a company;
Describe the form and content of balance sheet of a company;
Prepare the Balance Sheet of a company as per Schedule VI Part I of the Companies Act 1956.
Know the major headings under which the various assets and liabilities can be shown.
Explain the meaning, objectives and limitations of analysis using accounting ratios
Calculate various ratios to assess the solvency, liquidity, efficiency and profitability of the firm.
Interpret the various ratios for inter and intra–firm comparison. define Cash Flow Statement
know its objectives
...show more content...
Employees and Trade Unions
Employees are interested in better emoluments, bonus and continuance of business and whether the dues like provident fund, ESI et., have been
deposited with the authorities.
They would therefore, like to know its financial performance and profitability and operating sustainability.
Government and its agencies
Financial statements are used by government and its agencies to formulate policies to regulate the activities of business, to formulate taxation policies,
to compile national income accounts.
Taxation authorities such as income tax department use the financial statements for determination of income tax; sales tax department is interested in

sales while the excise department is interested in production.
Stock exchange
Stock exchange uses the financial statements to analyze and thereafter, inform its members about the performance, financial health, etc. of the
company, to see whether financial statements prepared are in conformity with the specified laws and rules and to see whether they safeguard the
interest of various concerned agencies.
Other Regulatory authorities (such as, Company Law Board, SEBI, Stock Exchanges, Tax Authorities etc.) would like that the financial statements
prepared are in conformity with the specified laws and rules, and are to safeguard the interest of various concerned

Essay about Financial Statements
Financial Statements basically show the historical performance or record of the company at some previous point of time. By the time when financial
statements are made public, changes are many economical areas such as market conditions, currency exchange rate and inflations can change the
values of assets and liabilities. In this case there often exist discrepancies between book value of assets and their market values.
In above case there might be companies that are healthy and many go through period of financial distress. In particular is the threat of not being able to
meet debt obligations.
The first Indication of financial distress is when firm does not have enough liquid assets (short–term assets) to cover (pay for) current...show more
content...
Since The Altman's model widely used among the investors, though it is not an intuitive model, once a firm is predicted having a financial distress
next year, it has been treated as it has been financial distress currently (whtaker, 1999).
This work aims at studying the effect of financial distress on operating cash flows of corporations. The interest in the area of financial distress has
increased due to considerable number of corporate failures around the globe in recent years especially since the early 1990s. Notable failures include
Global Crossing, Enron, Adelphia, Worldcom, HH Insurance, One Tel, and Ansert Airlines in 2001, and most recently FIN Corp in 2007.
Financial distress is defined as a low cash flow state of a firm in which it incurs losses without being insolvent or financial distress is a term in
Corporate Finance used to indicate a condition when promises to creditors of a company are broken or honored with difficulty. Financial distress is
different from insolvency. Financially distressed companies have lower profitability, higher leverage, lower past excess returns and larger size
compared to active companies.
The failure or bankruptcy of financially distressed firms results in significant direct and indirect costs to many stakeholders; including shareholders,
managers, employees, lenders and clients. For instance Shareholders lost nearly $11 billion

Financial Performance Evaluation Paper
Evaluate their effectiveness within certain financial areas with examples
In evaluating the above examples, the qualitative mixed–method of combining online customer service surveys with observational awareness and focus
group with in–depth interviews offers insight on their effectiveness within specified financial areas.
Customer surveys and observations. These were less effective in the beginning. Management's response to the previously decided information was to
increase customer service personnel support during early mornings, paydays, and bulk military in–processing months. This qualitative method of using
an online customer survey was effective in pin–pointing problems areas; yet, less effective in reducing overall customers in...show more content...
In all fairness, the researchers asked the same questions to control the qualitative data results (Arssel, 2017, p. 940). The initial purpose of gaining
detailed information in a private setting was effective. The in–depth interviews were beneficial beyond intended need. Ultimately, the qualitative
research exposed missing specifications in the drafted and allowed time for revision prior to releasing the final proposal.
Personal opinion on the future of qualitative research both within finance and in general
In my opinion, the future of qualitative research in finance and in general could merge civilian and government processes to cross–utilize qualitative
methods and tools. If overall spending habits decrease in the next few years; then, qualitative researchers may explore new ways to streamline
processes. For this reason, collaborating with big businesses or other competitors to provide quality financial reports or medical services may become
a viable option.
Financial managers. For example, finance utilizes group teleconferencing with other bases to resolve command level issues. In the future, a
teleconference group could consist of contractors, financial managers, project managers, and leaders from

Financial Globalization Essay
Executive Summary
During the past two decades, financial markets around the world have become increasingly interrelated. Financial globalization has brought
considerable benefits to national economies and to investors, but it has also changed the structure of markets, creating new risks and challenges for
market participants and policymakers. The international marketplace continues to present opportunities for companies. But change is constant and
prudent so companies must work to minimize their risks while maximizing their opportunities. The International marketplace can offer considerable
financial returns to companies conducting business but there are risks that have to be considered such as trade, foreign exchange, cash management,
...show more content...
This happens with the increased flow of goods (trade), foreign direct investment, money (finance), and/or people (migration). While globalization is not
new, the speed, depth, and scope of the changes on the globalization are novel by technology. Also new to the mix is the enormous power of
International Financial Institutions (IFIs) and global trade groups such as the World Trade Organization (WTO) to set the rules of the global economy.
(Holmes 2005)
Financial institutions play a vital role in the global economy. They are generally referred to as IFIs, a generic term given to all financial institutions
operating on an international level. IFIs range from development entities such as the World Bank and the European Bank for Reconstruction and
Development (EBRD), to monetary authorities such as the International Monetary Fund (IMF). These organizations provide loans to governments for
large–scale projects, as well as for restructuring and balance of payments (on condition that they make specific changes IFIs believe will boost
economic growth). (Holmes 2005)
2. International Financial Institutions
While each organization came into existence under different circumstances, each is vital to economic growth around the world and to the global
economy. For example, the World Bank,

Finance is a universal concept that affects and concern the lives of every person. All individuals should know the importance of finances regardless of
our profession or area of study. At some point in life everybody, not only big corporations, faces concerns regarding the proper and efficient
management of wealth. This class not only gave me the opportunity to learn about my future career path but also expanded my perspective regarding
the multifunctional aspects of being a professional in the finance sector.
I am the Vice President of Finance at Loyola Limited, four business that is run by undergraduate students. As the Vice President of Finance, I'm
responsible for facilitating the cash inflows and outflows from the business's operations. My responsibilities also include the implementing and
executing budget controls, maintaining the general ledger, tracking and monitoring revenues and expenses. I am also responsible for ensuring the
timely completion of all payments and deposits. Other duties include the accuracy of all financial trackers, enforcing adherence to all of the business's
financial standard operating procedures, performing necessary analysis on sales and expense patterns, and evaluating the viability and impact of any
and all purchases on behalf of the business. Through my experiences in Loyola Limited, I can to realized that as a Vice President of Finance, I wear
many hats. The responsibilities that I hold do not only involve finance but also operations,

Financial Management Essay examples
Financial Management Introduction ============ Every organization, irrespective of its size or ownership pattern, has to manage its finances. The
overall objectives of an organization cannot be achieved in the absence of financial management. Many organizations fail in their objectives because of
financial mismanagement and this failure rate is quite high among the small business enterprises. Hence, financial management is vital for all types of
organizations, profit making as well as non–profit making. In case of non–profit making organizations also the effectiveness and performance depends
on their financial resources management. Financial Management ====================...show more content...
3. Managerial Accounting deals with procuring of data for the organisation's management i.e. to serve the internal users with necessary accounting
information to carry out the management tasks of planning, organising, actualising and controlling. " Management Accounting is the presentation of
accounting Information in such a way as to assist management in creation of policy and in the day to day operations of an undertaking". 4. Financial
Management deals with the process adopted by an organisation for taking financial decisions through analysing and interpretation of financial data for
meeting the organisations objectives. Hence, the tasks involved in Financial Management include: Г Analysing financial needs Г Forecasting
financial needs Г Managing working capital Г Planning capital structures Г Organising financial operations Г Monitoring and controlling
finances etc. In fact raising funds and allocating funds for business are the two prime financial management tasks. Financial Planning Financial
planning is an appraisal of those financial aspects that may or are likely too occur in future but need immediate decision making. It involves setting
financial objectives in terms of profits, sales or acquistion of assets along with financial foorecasting for the organisation. This includes estimation in
the areas of: Г

Financial Difficulties
Finance is a huge part of our life that everybody hope to be in good financial state. However, today, more than ever before, people are struggling with
financial problems. According to a research conducted by AC Nielsen and ANZ in 2005, people often display six ways of thinking considered
"unhealthy" that putting people under financial pressure including 'living for today', 'financial disengagement', 'aspirational', 'emotional enhancement',
'ownership of credit', and 'credit as supplementary income".
Firstly, the prominent idea is "living for today". It means that people just think and spend for their present lives, and do not pay much attention for their
future. This way of thinking has a close connection with the " youthfulness" or the...show more content...
There are some who have a good job with middle–high salary, they don't think they need to worry as they can afford to pay their debts soon. They never
thought of being in emergency such as they might lose their job or in case they get divorced. I myself experienced a hard time at my first year at my
university living far away from my family. Lacking financial management skill, I just spent and bought everything I like without thinking about,
managing, and tracking my expenses. As a result, I went out of money soon and cannot afford to necessary things after that.
3. 'aspirational': – spending to "keep up with the Johnes' meaning a person is easily want to have the things that others have. He/she is likely to be
influenced by others or environment.
For eg: A Single Mother, Sally, lived in Rural for a long time, after that she move to the town near her daughter's school. She start to wanting and
needing more material things to fulfill her large house. Then she gradually buy more items.
Consequences: they might buy the things that they do not really need.
The 'aspirational' way of thinking is where people had a particular aspiration that strongly influenced their expenditure. The unhealthy spectrum of this
way of thinking was where this dominated, to an extent that it translated into over–spending and/or over–commitment. Common colloquialisms that
people used to describe this way of thinking included 'keeping up

Financial Problem Among Students
Introduction "No money no talk". Money, money and money. People always mentioned this word in their life. Do you think money is important in our
life besides food, shelter and love? If you think so, then why we need it? Nowadays, we always heard about bank robbery, snatch thefts, loan sharks and
others through media. Why did these crimes happened? It is because they have financial problem in their life until they involved in crimes. Financial
problem also happened among students especially when they further their study away from their hometown. Students always complaint about sort of
money.
1.2 Statement of Problem
This paper examines the reasons student have poor financial management, spending on non–necessary things or overspend...show more content...
They can be easily influenced by their friend. Especially when they spend their money at expensive places like Pizza Hut, McDonalds and Starbucks.
Spending your money at expensive places easily can make your money gone so fast. Besides, they like to follow their friend's trend and lifestyle. For
example, when their friends having a new mobile phones then the individual start to feel envy and make a desire to

Financial Literacy Essay
FINANCIAL LITERACY
"Financial literacy is one of the most important investor basics, especially if you want to be a safe investor, an inside investor, and a rich investor.
Anyone who is not financially literate cannot see into an investment. Just as a doctor uses X–rays to look at your skeletal system, a financial statement
allows you to look into an investment and see the truth, the facts, the fiction, the opportunities, and the risk. Reading a financial statement of a business
or individual is like reading a biography or an autobiography."
"A business has a financial statement, a stock certificate is a reflection of a financial statement, each piece of real estate has a financial statement, and
each of us as an individual human...show more content...
A sophisticated investor reads the numbers to get the true story and begins to see things that the average investor does not see. A sophisticated
investor must see the impact of government regulations, tax codes, corporate law, business law, and accounting law. One reason it is hard to find
accurate investment information is that to gain a full picture requires financial literacy, an accountant, and an attorney. In other words, you need
two different professionals to get the real picture. The good news is that if you take your time and invest the time to learn the ins and outs of what
goes on behind the scenes, you will find investment opportunities and great wealth, wealth that very few people ever find. You will find out the
truth about why the rich get richer, and the poor and middle class work harder, pay more in taxes, and get deeper in debt. Once you know the
truths, you can then decide which side of the quadrant you want to operate from. IT'S NOT HARD; IT JUST TAKES SOME TIME...TIME THAT
PEOPLE WHO JUST WANT A HOT INVESTMENT TIP DO NOT WANT TO INVEST."
"When you come to the boundaries of what you know, it's time to make some mistakes."
"The streets are a very tough teacher. In school, you're given the lesson first. On the street, you're given the mistake first and then it's up to you to find
the lesson, if you ever find it...in

Managing Personal Finances Essay
Managing Personal Finances
Managing personal finances is an important skill to acquire. However, no where in school is this subject taught. As a result of a lack of preparation,
our society is subject to a high percentage of people who lack financial success. Those who are successful at managing their personal finances will
find that they are successful in many other areas as well. To learn how to manage personal finances there are books and web sites that provide a step by
step guide to successfully managing personal finances. Those who lack financial success often possess many of the same traits.
The first reason most people lack financial success is because they lack knowledge, or better yet, a desire to gain knowledge....show more content...
This is similar to goal setting in respect to that one must dream to make a dream come true.
A big mistake commonly made by the financial failures is conforming. Listen to the advice of mother's: "If so and so jumped off a cliff would
you?" Don't do what everyone else is doing; dare to be different! Don't be afraid to take calculated risks. This does not mean that you can actually
jump off of a cliff, because that would be a foolish risk, this means again to foresee the results and consequences of your actions. The successful
people in society are the ones who don't do the same thing as everyone else. For example, look at the modern art. This type of art is so profitable
because it is so different from any other art created.
It is also important to beware of credit. Don't borrow excessively, because it will soon become debt, which has interest and other consequences.
Instead, set a budget and stick to it firmly! Attitude is also an issue in financial success. If a person has a poor attitude, he will only get what he
deserves! If the worst is expected, the worst will happen. It all comes down to the power of one's mind. Think positively! When setting goals, focus on
the positive aspects, and don't include any negative words. Everything can be rephrased to be positive. Successful people are optimists! In order to be
an optimist, only associate with optimists. The

Introduction To Financial Management Essay
Define the terms finance and financial management, and identify the major sub–areas of finance.
Finance is the study of applying specific value to things individuals own to include services used and decisions determined [Finance by Cornett, M.
M., Adair, T. A., & Nofsinger J. (2014). M: Finance (2nd ed.)]. In simple words,finance is how much value is attributable to goods and services and the
basis of such attribution.
Financial management may be defined as the management of the finances of a business or an organization in order to achieve the financial objectives. It
includes creation, effective utilization of funds to ensure the smooth functioning of the business. It encompasses planning, administration and
controlling.
The various...show more content...
The advantages are as follows:
More than one owner is there in business and hence the risk is shared
Each partner will contribute capital and hence more capital will be available
This is also relatively easier to start compared to a corporation
The income from this type of ownership is taxed once as personal income
The disadvantages of a partnership is as follows:
The profits are shared between the partners. Hence, when compared to a sole proprietorship there is lesser profits
Generally, the liability of the partners is unlimited (except in the case of a limited liability)
It is difficult to transfer ownership
A corporation is a separate legal entity whose transactions and conduct of the business is separate from its owners. Corporations can borrow money,
sue and be sued in its own name. The advantages of a corporation are as follows:
The liability is limited to the amount paid on stock by the investor
The corporation has an unlimited life
There is separation of ownership and management as the corporation is a separate legal entity
Transfer of ownership is easy
As a corporation, it is easier to raise capital from equity and debt market
The disadvantages are:
The agency problem arises as there is separation of management and

Financial Investments And Financial Assets Essay
The act of deploying funds with the intention and expectation that they will earn a positive return for the owner is called investment. Funds may
be invested in either real assets or financial assets. Real investment occours when resources are used for purchasing fixed and current assets in a
production process or for a trading purpose. For example, the establishment of a factory or the purchase of raw materials and machinery for
production purposes. The purchase of a legal right to receive income in the form of capital gains or dividends would be indicative of financial
investments. For example, deposits of money in a bank account, the purchase of Mudaraba Savings Bonds or stock in a company. Eventually, the
savings of investors in financial assets are invested by the respective company into real assets in the form of the expansion of plant and equipment.
When money is deposited with an Islamic Bank, the bank, in turn, makes investments in different forms approved by the Islamic Shariah with the
intent to earn a profit. Not only a bank, but also an individual or organization can use Islamic modes of investment to earn profits for wealth
maximization. 3.2 INVESTMENT OF EXIM BANK YearInvestment (Tk. in millions) 201399,309.51 201470799.45 The total amount of investment
of the bank stood at TK 99,309.51 million as on December 31, 2014 as against TK 70,799.45 million as on December 31, 2013 showing an increase
of TK. 28,510.06 million with the growth rate of 40.27%.

Personal Financial Planning Essay
Every person want to handle his or her finance, but they need to choose an organized process which is call personal financial planning. I am 54 years
old, living the single life. I live in a household with one other adult, and I am a full–time student and a part–time employee. Based on my current
situation (Older, Single, No Dependent Children), therefore, my financial activities should include making arrangement for long–term health care
coverage, develop an estate plan, buy a right insurance plan, and develop an investment program for retirement. My financial plan goals are Short–term
goals, Intermediate goals, and long–term goals. My first financial plan goal is short–term goals. There are three plan goals in my short plan which are
to pay my credit card debt, go on a vacation, and purchase an...show more content...
My long–term goals are an arrangement for long–term health care coverage, develop an estate plan, and develop an investment program for retirement.
The long–term plan needs to keep all my expenses same as a short–term plan. Decreasing dollars every month or 2,400 dollars per year, then with %5
interest for 10–15 years investing, I can have 45000 dollars for my retirement investing plan. In addition, I will develop an estate plan consist
everything that I own. So, I will create a detailed plan for managing my assets and make the most of them while I am alive. Also, I will make sure
that my assets are distributed wisely after my death. Because I am single, my beneficiary is my nephew, who is receiving a part of my estate after my
death. My last financial investment plan is long – term health care coverage. Most health care companies in the USA provided by private insurance
companies. The Obama Care program gives us less opportunity to find the variety of insurance. The cost of health care insurance increase every year,
so I need to invest more money to cover all my health

Financial Services Essays
Financial Services
Introduction to Financial Services
1.0Financial Services is a growing industry, which provides for the financial needs of individual consumers and businesses. This unit explores the
needs of and products available for both the consumers and businesses. The term financial service covers a wide range of products including accounts
for depositing money, loans, savings and investments, pension and financial advice.
Financial Services for individual consumers are available from banks, building societies and also from organizations such as supermarkets and insurance
companies, over the counter, by telephone or over the
Internet.
Businesses have financial needs when they start up, expand and carry
on...show more content...
This report is due back on the
10 th December 2004.
1.2Financial service providers
Below are some of the financial providers
– Investment companies
– Insurance companies
– Government
I will talk briefly about each one and explain the benefits and the disadvantages of each.

Investment companies
Investment companies provide people with wide range of product types, to meet their certain needs.
People that have money to invest should know clearly what they want to do, achieve for example:
– Capital growth
– Income
– Or both
The investment company they prefer should help them meet this objective, baring in mind a number of other factors such as the persons risk profile,
the amount that can be invested and how long for. Insurance companies
Insurance companies provide policies, designed to pay out if some particular event happens. They offer products aimed at satisfying our needs for
protection.
People may want to ensure against:
– Damage to your house through fire
– Breakage or loss of your possessions
– Death of the main family earner
Insurers charge a premium for the policies their customers take out, which is effectively the price the customer pays for the protection he has obtained.
Some

Essay on My Personal Financial Plan
My Personal Financial Plan
I. Current
A. Description
Currently I am a full time student, and senior, at majoring in Accounting and Finance. I do not have a part time job and do not plan to work until I
graduate. I currently have taken out student loans to support myself through the rest of my college education. My parents pay for insurance payments
for my car, cover my phone bill, and provide me with medical insurance. I pay for all the rest of my expenses, including rent, food, gas, and all other
daily expenses. I currently have no investments and no substantial assets with a value of over $1000. I graduate in May and have signed a contract
with KPMG to start work as an auditor in August after I complete the CPA. I...show more content...
To accomplish my second goal I plan on putting a cap on my level of living expenses that increases at a smaller multiple then my income each year. I
want to give another half percent of my income each year. I will budget out my salary for discretionary and non–discretionary spending and stick to the
budget by limiting use of credit cards and attempting to pay cash for most items I purchase. This will help me control my cash outflow.
E. SWOT Analysis
Strengths
Most of my assets at this point are in cash so I have a lot of liquidity to pay off debt or other expenses. I am a very goal oriented person so when I
set goals to follow to financial success I take them very seriously. My job at KPMG is a strong job with high future potential earnings as well as
learning opportunities. One of the best things about auditing is that I will be able to find a job making a lot more after I work a few years at
KPMG. My knowledge over investments and how to invest is very good which will help me to continue to make money in the market. When looking
at risk management, my health is very good, which means I should hopefully not have very high healthcare costs. KPMG provides a good insurance
policy that covers any of my insurance needs and reduces my risk. KPMG also has a very good medical reimbursement policy and a high quality of
other programs for their employees.
Weaknesses I do not have

Role of Financial Manager Essay
When I think of a financial manager, accountant quickly comes to mind. The role of accountant and financial manager are similar in several ways and
often times they work closely together on various projects. The role of an Accountant is to ensure that their organization is run efficiently, make sure
their records are accurate, and that their taxes are paid properly and on time. Accountants perform a broad range of accounting, auditing, tax, and
consulting activities for their clients. They record and analyze the financial information of the companies for which they work. Other responsibilities
include budgeting, performance evaluation, cost management, and asset management. "The role of the financial manager has expanded beyond
traditional...show more content...
Controllers also are in charge of preparing special reports required by regulatory authorities. Often, controllers oversee the accounting, audit, and budget
departments.
Finance Officer– directs the organization's financial goals, objectives, and budgets. They oversee the investment of funds and manage associated risks,
supervise cash management activities, execute capital–raising strategies to support a firm's expansion, and deal with mergers and acquisitions.
Credit Manager– oversee the firm's issuance of credit. They establish credit–rating criteria, determine credit ceilings, and monitor the collections of
past–due accounts. Managers specializing in international finance develop financial and accounting systems for the banking transactions of
multinational organizations.
Cash manager– monitors and control the flow of cash receipts and disbursements to meet the business and investment needs of the firm. For example,
cash flow projections are needed to determine whether loans must be obtained to meet cash requirements or whether surplus cash should be invested in
interest–bearing instruments.
Risk and insurance manager– oversee programs to minimize risks and losses that might arise from financial transactions and business operations
undertaken by the institution. They also manage the organization's insurance budget.
Financial managers are involved in the investment decisions for their organization they

Finance, Economics, And Finance Essay
Statement of Purpose
As a child, I often accompanied my uncle to the stock market. Looking at the share index numbers on the large overhead screen, I was fascinated with
this world. As I grew up, I gradually came to appreciate the importance of financial sector in the modern world. In the university, I was fortunate to have
been exposed to many interesting and challenging fields. Though I ultimately chose to major in Accounting, I also studied business, management,
economics, and finance. These courses impressed upon me the importance of the financial sector in the economy. Finance professionals have the unique
responsibility of managing assets and analyzing risks to ensure the future success of a company or organization. It is difficult to overstate the
importance of this role, as the financial crisis of 2009 showed. It is due to my understanding of the importance of finance and investment, coupled with
my longstanding interest for this subject, that I have decided to pursue postgraduate studies in finance at your prestigious university. Earning a master's
degree in finance would ideally complement my undergraduate degree in accounting. My background in accounting provides me with fundamental
knowledge of many finance–related theories and concepts, as well as familiarity with statistics and data analysis. I learned the basic tenets of finance in
courses such as Economics, Management, Accounting and Corporate Finance. Through case studies and lectures, I broadened my

Financial Equity Essay
In their 2009 study, "How Do Firms Finance Their Investments? The Importance of Equity Issuance and Contracting Costs.", Vladimir A. Gatchev and
his colleagues were set on trying to determine how companies respond to changes in profits and investments and how various factors impacted
financing decision. The focus was not in testing a theory but getting "a deeper understanding how investment and cash flow shocks affect a firm's
financing decision." (Gatchev, Spindt, & Tarhan, 2009) The study was designed to determine which financing decisions were affected based on the
information gathered for consideration. Specifically, the purpose was to determine what the causation or determining factors were when equity was
being considered as a...show more content...
The test results were also well document throughout the study. It found that deficits due to investment were financed with long– term and short– term
in addition to equity. Market timing cannot totally explain equity issuance as profit deficits were often financed with equity. The study found that
companies use equity to fund internal investments such as advertising and Research and Development. Another finding, which is supported by a 2005
study (Fama, 2005), is that small, high–growth, and less–profitable companies tend to use equity for financing than large companies, more profitable
companies and low–growth companies. The study also indicated that companies respond to profits deficits with the use of equity, they replenish cash
balances and reduce debt in response to positive profits. Finally, the results showed that high asymmetric information companies use more short–term
debt than long–term debt to finance fixed asset investments. Further, companies with high potential debt agency costs used more equity and less
long–term debt for fixed asset investment financing. The study results

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