Financial Management as a Tool for Achieving Stable Firm Growth

Svetlana Saksonova; Svetlana Savina

doi:10.1515/eb-2016-0021

Financial Management as a Tool for Achieving Stable Firm Growth

Authors

Svetlana Saksonova University of Latvia
Svetlana Savina Higher School of Social Technologies

DOI:

https://doi.org/10.1515/eb-2016-0021

Keywords:

Financial management, firm value, method of discounted cash flow

Abstract

The purpose of this study is to show that financial management in the firm is a tool for achieving stable firm growth and long-term firm stability while problems in firm financial management lead to the inability of firms to ensure sustainable growth of their value. This problem is relevant for firms in all countries. The main objectives of this paper are: to analyse dynamics of value of the largest Latvian firms, to determine the drivers of these dynamics and to establish the main problems slowing the growth of firm value, which are related to the drawbacks in financial management, and to provide suggestions for solving these problems. This study analyses financial management processes and identifies several key problems in financial management.

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