Corporate Governance and Financial Management ― Computational Optimisation Modelling and Accounting Perspectives

Recent corporate failures and the global financial crisis demonstrate that complying with good corporate governance (GCG) best practices alone neither guarantee the potential benefits offered by these practices, nor protect a company from corporate failures.
Offering an integrated solution for achieving GCG practices, this book adopts value-based management (shareholder value maximisation) and stakeholder approaches to demonstrate an integrated framework that incorporates risk management practices, accommodates external regulatory environments and addresses the importance of cost of capital. This comprehensive study integrates a range of topics such as corporate governance, corporate finance and accounting in the formulation of sound financial management and financial engineering strategies. Siti Nuryanah and Sardar Islam demonstrate an innovative model which applies a free cash flow (FCF) valuation and financial ratio analysis, and incorporates the external governance mechanisms reflected by capital market and regulatory environments, such as tax policy, accounting standards and practices, industry practices and market risks. The authors examine how internal governance instruments such as leverage, executive compensation and risk management practices discipline managers in the process of shareholder value maximisation, and provide valuable insight into the importance of alignment of accounting standards with other regulations for measuring a company's financial health.

The approaches explored in this book will be of value to anyone with an interest in GCG practices, corporate regulation and financial modelling.

Siti Nuryanah is a Researcher and a Lecturer in Accounting in the Faculty of Economics, Universitas Indonesia. Currently she is also a sessional lecturer at Victoria University, Australia. She holds a PhD from Victoria University, a Master of Business (Accounting) from Victoria University and a Master of Finance from Universitas Indonesia. Her research interests are in the area of corporate governance, tax, accounting and finance. She has written books and published papers in international refereed journals, and is one of the reviewers of an accounting refereed journal in Indonesia: Jurnal Akuntansi Indonesia (JAKI).

Sardar M. N. Islam is a Professor in the Faculty of Business and Law, Victoria University, Australia. He is undertaking research and doctorate supervision work in a wide range of disciplines including economics, finance, business, accounting, and law. He has published a number of finance, business, economics, accounting and law books, each of which makes significant scientific contributions to the literature. He has also published articles in leading international journals in his specialized research areas.