search query: @author Navarre, C. / total: 8
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| Author: | Navarre, C. |
| Title: | Checking the consistency of the corporate financial objectives |
| Journal: | Annales de Sciences Economiques Appliquees
1988 : VOL. 3:3, p.68-87 |
| Index terms: | CORPORATE STRATEGY FINANCIAL POLICY GROWTH INVESTMENT |
| Language: | eng |
| Abstract: | It is argued that firms need to adapt to market induced growth rates, by growing at least as fast as the markets they operate in, thus they will be in a position to cover for cost variations and return on invested capital. However the potential growth rate is constrained by what is viable given the financial structure. It is demonstrated that in certain cases, the simultaneous pursuit of such objectives leads to inconsistencies. As a result, managers who take a proactive approach need to ensure that intended objectives are not only pertinent, but also cohered. A model is proposed for testing the coherence of financial objectives. The model can easily be implemented by using a spreadsheet. |
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