Sound Financial Management Strategies for Achieving Good Corporate Governance Practices

The subject of this book is the formulation of sound financial management strategies for achieving the economic benefits of good corporate governance (GCG) practices through an optimisation financial model developed from managerial and financial accounting perspectives. This chapter presents the background of this study: the phenomenon of corporate failures, the current global financial crisis and the need for sound financial management strategies for achieving GCG practices. Good financial management strategies that incorporate elements of GCG practices are essential for a company’s survival. This chapter also provides an initial discussion of an optimisation approach as one of the methods for formulating sound financial management strategies. The chapter then emphasises the uniqueness of the current study and lists the aims of and motivation behind the research. A short discussion of the research methodology underpinning the study is presented next, followed by the contributions of the book, and a description of its structure.