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Roles and Responsibilities of Chief Financial Officer and Efficient Market Hypothesis

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Added on  2019-09-21

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This paper discusses the roles and responsibilities of the Chief Financial Officer and the impact of their responsibilities on the objective of the company. It also describes the case in which the efficient market is true, the pension still not select a portfolio with a pin.

Roles and Responsibilities of Chief Financial Officer and Efficient Market Hypothesis

   Added on 2019-09-21

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Running head: FINANCIAL MANAGMENTAMP LIMITEDFinancial ManagementStudent Name:Course work:University:
Roles and Responsibilities of Chief Financial Officer and Efficient Market Hypothesis_1
FINANCIAL MANAGEMENT1Table of ContentsIntroduction......................................................................................................................................2A.Chief Financial Officer Roles and its Impacts.........................................................................2Three responsibilities of CFO......................................................................................................2Impact of responsibilities on the Company’s objective...............................................................4B.Pension Fund Manager and EMH............................................................................................6Efficient market hypothesis.........................................................................................................6Conclusion.......................................................................................................................................8References......................................................................................................................................10
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FINANCIAL MANAGEMENT2IntroductionIn this present paper, we will discuss the roles and responsibility of chief financial officer and theimpact of their responsibilities on the objective of the company. The company is AMP limited which is a non-financial company in Australia since 1849. The company provides financial services with superannuation and investment products, financial advice, insurance, loans such as home loan and others. The paper also describes the case in which is the efficient market is true, the pension still not select a portfolio with a pin. A. Chief Financial Officer Roles and its ImpactsThe AMP limited is a non-financial Australian stock exchange listed public company. The company has largest stockholders register. The Chief financial officer plays a vital role in the non-financial company. The company is having four main areas of business, namely, advice and banking, insurance and superannuation, customer solution and AMP capital (AMP et al., 2016). The CFOs roles and responsibilities are continues which includes stretched and scrutinized for maintaining the high-level view of an organization, balancing short-term activities such as liquidity management, business integrity, strategic leadership, managing innovations and others. Three responsibilities of CFOFollowing are the principles of CFO:a.Create value: The value creation is done through developing a sustainable strategy which helps to create the value in the organization.
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FINANCIAL MANAGEMENT3b.Enable value: The CFO enables the value in the organization through supporting the top level management and government bodies in decision making and strategy formulation which is directed towards the goals and objective of the company.c.Preserve value: The value is preserved through managing the risk, asset and liability management which helps to achieve the goals and objectives of the organization. The internal control system is implemented and monitor for the effective system.d.Report value:The business reporting should be used for an internal and external system which helps to ensure relevant and useful reporting in the organization.Following are the three major responsibilities of chief financial officer:1.Controllership dutiesThe Chief finance officer is responsible for presenting and reporting accurate historical financial information timely which helps to take a decision and developing strategies of the company. The investment decisions are based on the information presented by CFO so it should be accurate because the crucial decisions are based on the reports presented by CFO (McKinney et al., 2015). It is one of the main responsibilities of CFO to present the reporting which is used by the stakeholders for taking financial decisions.2.Treasury dutiesThe CFO is responsible for the financial condition of the company which is based on the strategy formulation and decision making by CFO. The CFO is responsible for the liquidity, risk management, capital structure, debt-equity ratio and others financial aspects which directly impacts on the profitability of the company. The CFO acts as a backbone of the company because the financial conditions directly impact on the
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