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11 May, 11:15

As a chief financial officer, evaluate three (3) main concerns that entails your job in order to maximize the goal of stakeholders value maximization

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  1. 11 May, 14:40
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    A chief financial officer (CFO) is responsible for maximizing shareholders' value. However, they can face concerns related to how much risk is too much risk in the pursuit of earning a higher return. They have to find a balance on which risky projects to invest in. Another concern would be the principal-agency problem in which trying to maximize value, they may be tempted to put their own interests first by pursuing high-risk projects which may not be at the best interest of shareholders. Lastly, the CFO might conspire with shareholders to go after short-term gains to extract value from the corporation at the expense of customers, employees and the community as a whole.
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