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Define the impact of Corporate Finance on organizations today. How does integrity effect the overall result?...

Define the impact of Corporate Finance on organizations today. How does integrity effect the overall result? Give at least one positive and one negative.

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Answer #1

Corporate finance regulations make sure that all publicly listed organizations provide financial statements, namely - Income Statement, Balance Sheet and Cash flow Statement each quarter and also annually. These statements must be transparent and should be vetted by external auditing organizations and the top management of the organization

Integrity plays an important role. Without integrity we can have scams like the Enron scam in the early 2000s where the management in connivance with the auditors fudged the numbers and so as to put a pretty picture even when the picture was not pretty.

The positive is that with integrity, financial organization can gain the trust of investors and shareholders on the long run. It can create intangible wealth for the business.

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