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Global Business Environment : Corporate Management

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We live in a period of drastic changes in the world: the transition process from an industrial to a postindustrial economy has restructured everything; redistribution of economic and social power is continuous and global. The old ways of doing business no longer work and as we moved from industrialism to post-industrialism, the new market prevailing under globalization has changed the nature of business. Only a worldwide corporation can adapt to these powerful socio-economic megatrends, such as globalization, environmental crisis, technology convergence, individualism, digitization, and demographic change that are transforming the global business environment. Corporate management now exploits every opportunity to implement business growth …show more content…

However, merger execution requires significant investments and businesses must know exactly what they want to achieve from mergers. “Mergers is the area of corporate finances, management and strategy application when two organizations join forces to become a new business, usually with a new name. Merger is an important business decision and every decision made in a business has financial implications” (Ross, 2013). In other words, adhering to the research, a corporate financial decision on merger involves the use of corporate funds. Nowadays, the practice of corporate finance is more challenging than before, because the last decade has seen fundamental changes in financial instruments. The world’s financial markets have undergone a wave of integration, which was triggered by the recent global credit crisis and the followed stock market collapse (Ross, 2013). The financial data of the merging companies is a significant part of corporate finance and it helps to evaluate the outcome of the merger and conducting it appropriately. Financial reporting consists of financial data and plays a vital part in corporate governance, as it is an important tool that helps to define the position of the company in the current market. Thus, it is the primary purpose of financial reporting to help management to engage in effective decision-making processes concerning the

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