Financial econometrics studies the quantitative and statistical aspects of economic principles using regression analysis and data sets to understand the interrelated components of the economy. It benefits portfolio and risk management and was developed in the early 20th century by Ragnar Frisch. Financial econometrics is the discipline that studies the quantitative and statistical aspects of […]
Financial leverage measures include debt to assets, debt to equity, and interest coverage ratios. These ratios determine a company’s ability to meet financial obligations. Debt to asset ratio shows the percentage of assets financed by debt, while debt to equity ratio indicates the ratio of debt to equity used to finance assets. Interest coverage ratio […]
Financial industry standards include education, transparency, accurate record keeping, and ethical consistency. High educational standards and licensing requirements are necessary for careers in high finance. Compliance with these standards builds trust and can result in criminal prosecution for violations. Financial industry standards include education, transparency, accurate record keeping, and accurate data reporting. High ethical standards […]
Financial covenants are commitments made in financial contracts that describe actions to be taken if agreements are not fulfilled. They are found in loan agreements and contracts between sellers and customers, and serve to ensure mutual responsibility and protect all parties’ interests. Financial covenants are part of the terms and conditions found in any type […]
A financial sponsor can refer to a private equity firm that manages leveraged buyout transactions or individual investors who provide funding and advice for new businesses. They bring valuable assets such as contacts and expertise to improve the business and ensure its success. A financial sponsor is a term that can be used in financial […]
A corporate finance director manages a team of financial specialists, develops financial strategies, and reports to the CEO. Investment banking experience and knowledge of capital raising methods are advantageous, as is experience with shareholders, mergers, and acquisitions. Maintaining an excellent credit rating and communication skills are also important. A director of corporate finance typically oversees […]
Financial planning and budgeting are both important for creating a stable financial situation. Budgeting manages day-to-day expenses while financial planning sets goals and objectives. Adequate cash flow is necessary for both to work, and adjustments may be necessary to accommodate income levels. While both financial planning and budgeting are important tools in creating a stable […]
Financial highlights are a summary of important financial information included in reports such as corporate annual reports, mutual fund prospectuses, and government agency reports. They are used to focus the reader’s attention on positive results and can include performance statistics, net cash flow, financial ratios, and other noteworthy matters. Financial highlights serve as a marketing […]
Development Financial Institutions (DFIs) provide financial aid to promote sustainable development and economic growth in developing countries. They offer various financial services and invest in risky projects that banks and other institutions avoid. DFIs have a dual mandate to encourage development and make profitable investments, and they can take the form of community development finance […]
Financial analysis is a system that evaluates various aspects of a business opportunity to make a comprehensive and financially beneficial decision. It requires the integration and evaluation of a broad spectrum of data, and financial executives are adopting it as a solution to increase financial productivity. Companies can hire an analyst firm or use a […]
Financial econometrics studies the statistical aspects of economic principles, using regression analysis and data sets to understand the interconnectedness of different components of the economy. It is useful in portfolio and risk management, and was developed in the early 20th century by Nobel laureate Ragnar Frisch. Financial econometrics is the discipline that studies the quantitative […]
Financial industry standards include education, transparency, accurate record keeping, ethical standards, and consistency. These standards are crucial for the world economies to thrive and engage in trade. High educational and licensing standards are required for working in high finance. Violation of these standards can lead to criminal prosecution. Financial industry standards include education, transparency, accurate […]
Financial covenants are commitments in financial contracts that outline actions to be taken if not fulfilled. They are found in loan agreements, supplier-customer contracts, and employment contracts to minimize misunderstandings and protect all parties’ interests. Financial covenants are part of the terms and conditions found in any type of financial contract. The covenants represent specific […]
Financial performance management monitors financial results and compares them to budgets or forecasts to achieve specific goals. It applies to investment management and business operations, with constant adjustments to meet changing market conditions. It involves analyzing income and expenses to make decisions on increasing sales, reducing costs, and managing financial performance. It is a necessary […]
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