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Financial Management Goals of Ethical Reporting

To determine Ethical and fiscal health in a company, the introspection and evaluation of the ethics concerning their policy.

Financial Management Goals of Ethical Reporting

To determine Ethical and fiscal health in a company, the introspection and evaluation of the ethics concerning their policy of correctly reporting earnings, debt, and cash flow holds a prominent position. It is congruent with the actual products or services the firm produces. This fact means that part of understanding the risk is how the company communicates its policy on ethics, which can show the boards worth in its standings when compared to competition. Reporting earnings and ethics policy's is a significant portion of the lending interview. (Asquith & Weiss, 2016).

In 2002 The Sarbanes-Oxley act was introduced, which increased the oversight role of boards, the fines of directors, and the independence of the outside CPAs who review the correctness of industry financial statements. (Gupta et al., 2018) The nexus between information asymmetry and bid-ask point can be derived back from the equity and stock transaction cost concept. Having a compliance report is required for listing on exchanges and thus continues the benefits to the company by its inclusion in public markets. Moreover, the theory of familiar traders and liquidity traders(Gupta et al., 2018), soundness, and ethics can play a vital role in the markets and has a large part in the valuation of a company's stock by the public.

After policy and ethics, four financial reporting methods formulate a firm's goals (Kramer & Johnson, 2009), and objective reporting of finance assists in making investment or credit risk distinctions. Along with cash flow prospects answering questions about business profitability. Discussion concerns include covering the balance sheet, income statement, and The owners' equity statement.(Kramer & Johnson, 2009) all leads to major valuations among peers, stockholders and the public at large.

Supporting reports suggest that when investors have more cognition proportional to administration, stocks are inclined to receive relatively good market values. When corporate heads have more significant preventive provisions in polices (resulting in greater stockholder rights)(Laux, 2010), this can heighten the stock's long-term value. This fact leads to a comprehensive understanding that a firm's ethics, when communicated to the stakeholders, will cause improvement in the price of stock valuation. (Laux, 2010)

The conclusion to this week's study can only amplify the understanding that in both public and private corporations, the standard of ethics, when adequately communicated to the public and the stockholders, will lend itself to higher valuations in branding and finance actuals. The goals of Financial Managers and Ethical policies must be communicated as the central part of the strategy for a successful company moving forward.

The goal of this paper is, on the foundation of research, analysis, and reasoning of contemporary publications, books, and articles on the topic of financial administration, to plan methodological formulation for the constitution of effective financial management schemes for the multi-business firms, as well as to prove its economic advantages.

Financial Management Goals of Ethical Reporting

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American Psychological Association. (2020). Publication manual of the American Psychological Association (7th ed.).

Asquith, P., & Weiss, L. A. (2016). Lessons in corporate finance : A case studies approach to financial tools, financial policies, and valuation. John Wiley & Sons, Incorporated.

Gupta, P. P., Sami, H., & Zhou, H. (2018). Do companies with effective internal controls over financial reporting benefit from Sarbanes–Oxley sections 302 and 404? Journal of Accounting, Auditing & Finance, 33(2), 200-227.

Kramer, B., & Johnson, C. (2009). Financial statements. McGraw-Hill Professional Publishing.

Laux, J. (2010). Topics in finance part I-introduction and stockholder wealth maximization. American Journal of Business Education, 3(2), 15-21. url= introduction-stockholder/docview/195900864/se-2


This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.

© 2022 Wyatt James Brooks

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