International Financial Management: Importance, Challenges, Theories, and Analysis of HSBC Holding Plc

INTERNATIONAL
FINANCIAL
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
International Financial Management......................................................................................3
Importance of International Financial Management in HSBC Holding Plc...........................3
Challenges that might experiencing by HSBC Holding Plc in different international finance
market.....................................................................................................................................4
International Finance Management Theories.........................................................................5
Dividend Distribution Policy of the HSBC Holding Plc........................................................5
Efficient Market Hypothesis Theory in the context of HSBC Holding Plc...........................6
Analysis and Evaluation of HSBC Holding Plc's Methods of Appraising the Projects.........6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
International financial management can be taken as a specific field of management which
incorporates generation, management and control of funds required for international operations
(Akgün and et.al, 2020). This report presents a critical analysis and importance of the
international financial management in reference of the one of renowned business group situated
in the UK that is HSBC Holding Plc. Further, several international financial management
theories have discussed in this report in contesting the challenges which the corporation may
experiencing in different international markets.
TASK
International Financial Management
International financial management can be defined as a set of policies and procedures
used specifically in managing the finance in relation to an international corporation. The main
objective of international financial management is to manage the finance system of large
companies which are operating in different geographical location in respective of fulfilment their
financial requirements, manage and control them in order to increase the shareholder’s wealth
(Amagtome and Alnajjar, 2020).
Importance of International Financial Management in HSBC Holding Plc
HSBC Holding Plc is a renowned business group located in London, UK. It is a
multinational bank corporation operating in no. of countries. International financial management
plays a vital role in managing the funds of the corporation. Its importance can be understanding
with the following points mentioned below:
 It plays crucial role in encouraging and managing the bank's businesses world-wide.
 It ensures the effective and efficient use of the bank's capital to manages its different
operations.
 It assists in managing the overall cost bracket of the bank plus ensuring the maximum
generation of the funds.
 It controls the accuracy and relevance of the financial data and reports.
 It helps the bank in countering the financial and economic challenges come up before the
corporation.