Reckless Strategic Financial Behavior: Ill-Conceived Financial Management

Vinay B. Kothari

Chapter Chapter 14 in Executive Greed, 2010, pp 143-150 from Palgrave Macmillan

Abstract: Abstract Corporate management’s primary responsibility is to protect the stockholders’ long-term ownership interests in financial security and growth. But, in the pursuit of their own personal financial interests, the CEO and his/ her top executives and advisors jeopardize their organization with their imprudent financial strategies and practices. Instead of implementing effective business policies and approaches, corporate leaders undertake risky financial behavior and focus on the organization’s current profitability and fast maximization of return on investment. They ignore the corporate strategic market advantages and potential for long-term cash flows. They disregard the cash problems and corporate security in the years to come.

Keywords: Cash Flow; Executive Compensation; Financial Behavior; Debt Financing; Corporate Leader (search for similar items in EconPapers)
Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-10965-0_14

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DOI: 10.1057/9780230109650_14

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