Corporate Investment and Role of Finance Manager

The job of finance manager is to lead his corporate company into profits. Investment strategy is drawn basing on available opportunities. To take a decision on buying an asset, it shall be valued properly. A corporate finance manager shall analyze its worth and return in the future. He can take the help of expert person in the specific field to analyze all this issues. His basic motto shall be bringing profit to his company and distribute it to the share holders. If there is a possibility he shall avoid taking risks to make profits. Investors love to get better money with lesser risk. He shall evaluate the present and future value of the asset before taking a decision on buying it. Once if he is able to conclude that the asset value in the future is more than the present value, he can convince the management about it.

The return is measured as the ratio of profit made when compared with the investment made. If the company make better profits,the stake holders will be more comfortable and happy. In big corporate companies there is a separation between ownership and management. In the interest of ownership and share holders,managers can take a decision and there is no ego issues present here.

A company may wish to invest money in cash and reduce the dividends distributed to the stake holders. In many cases this is not a happy decision for them and they want profits. The job of the finance manager is to find the balance between profits and investments. He need to give back dividends to the investor and also take company into a better position.

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