Recent International Financial Innovations: Implications for Financial Management (original) (raw)

This paper discusses the implications of financial innovations for corporate financial management. It outlines significant systemic changes driven by innovations in financial markets, such as product innovation, securitization, liberalization, globalization, and interpenetration among financial institutions. The analysis highlights how these innovations necessitate a reassessment of traditional financial management paradigms, which historically focused on shareholder wealth maximization and optimal capital structure, especially in light of the expanded choices available to financial managers today.