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What will happen if the companies are not obeying to the financial ethics?

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  Before we find the answer to the question mentioned in the title, let us analyze the real meaning of financial ethics. Financial ethics means the act of the shareholders and stakeholders being ethical in the company. These include the act of being honest, justice, fair, true, and full of integrity. If an employee is said to be unethical in terms of finance, he or she might not be honest, fair, telling the truth or being truthful, or having integrity. There are seven principles in ethics. These include beneficence, health maximization, efficiency, respect for autonomy, justice, proportionality, and non – maleficence. It is very important for the shareholders to be ethical in the company in terms of finance. This is because when the shareholders and the stakeholders comply with all the financial ethics properly, the public who are the customers will have good intention and thought about the specific company which this thought can help to improve the business performance of the co...
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Is it important to create value in a company? How inflation affects the created value?

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  Have you heard about the term  creating value? If you are a finance student or working in a finance-related company, you might have known the meaning of value creation. There are many people out there does not know and understand the term, “value creation”. I really hope that if you read my blog, you will understand the meaning and the importance of creating value in the company. Creating value is the process of maximizing the benefits of the company in terms of finance. For example, if an investor invested RM 5 in a company, the return should be higher because if the return is less, the value will not be created. The main purpose of investment is to create value which is to maximize the benefits based on the invested capital. Is it necessary for the investors to create value in the company based on the investment? This is very important because the growth of the company is entirely dependent on the maximization of finance in the company. This is very important for the t...
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Constantly Fluctuating Malaysian Currency Until Today

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  Today, we are going to discuss about the Malaysian currency that is constantly dropping day by day. Based on the line graph below, we can understand that the value of the Malaysian Ringgit has become poor when we compare it to the United States Dollar. Have you realized that the Malaysian currency is constantly fluctuating nowadays? Is this an issue? Yes, it is an issue. This is because most of the activities will be affected when financial investment is carried out. I have wanted to travel around the world this year but when I look at today's currency rate, it has shaken me. The Malaysian currency against the United States currency shows RM 1 to USD 0.2209. This shows that the currency of Malaysia is getting poor and poor day by day. Briefly, we are able to exchange the Ringgit Malaysia 1 to the United States Dollar and will obtain only 0.2209. I had to throw the idea of visiting other countries and can only focus on the countries that have lower currency rates compared to the M...
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