The Impact of Information Technology in Corporate
Financial Management
Francis Pol Lim
AMA University, Quezon City, Philippines
limfrancispol19@gmail.com
Abstract. Information technology is a wide field which has influenced other
fields of knowledge and has applied its practical applications to make things
effective and efficient. This paper aims to describe the influence of information
technology in the field of corporate financial management. This 5.2article
discusses the basic principles and the key individuals in financial management.
A review of related studies regarding IT in finance will be also tackled.
Keywords: Information Technology, Financial Management
1 Introduction
Financial management is one of the important key functions in a company which has
a great impact on the success of the company. This is concerned with the acquisition,
financing, and management of assets with some overall goal in mind [1].
Its decision function includes areas such as investment, financing, and asset
management decisions. Investment decision happens when the firm has determined
the amount of assets needed to be held by the business entity to support its operations.
After deciding on what assets or securities needed to be acquired by the business, it’s
now time to decide on how to finance these assets. The company may utilize funds
from their equity or incur liabilities from external sources. Assets acquired must then
be managed effectively and efficiently in order to increase its returns.
In addition, related aspects of financial management may include, fund-raising,
fund usage, activity planning, implementations controlling and future developments
with the help of financial accounting, cost accounting, budgeting and business
statistics [2].
Generally, the objectives of financial management may be broadly divided into two
parts - profit maximization and wealth maximization [3].
Profit Maximization is a process that companies undergo to determine the best
output and price levels in order to maximize its return [1]. The company will usually
adjust influential factors such as production costs, sale prices, and output levels as a
way of reaching its profit goal [3].
On the other hand, wealth maximization is the concept of increasing the value of a
business in order to increase the value of the shares held by stockholders. The concept
requires a company's management team to continually search for the highest possible
returns on funds invested in the business, while mitigating any associated risk of loss
Advanced Science and Technology Letters
Vol.146 (FGCN 2017), pp.114-119
http://dx.doi.org/10.14257/astl.2017.146.20
ISSN: 2287-1233 ASTL
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