compare the financial manager's viewpoint with the viewpoint of stockholders?

Answer 1

Fundamentally, and on the long-term, the viewpoint of shareholders and company managers should be aligned. However, shareholders are normally short-term oriented and want the company to beat quarterly earnings estimate to increase the stock price instantly. To some extent, meeting the short-term quarterly earnings goals may hinder the long-term value creation of the company. for example, a company may be able to slash costs be reducing its marketing and advertising spending, which will essentially boost profit margins in the near term. However, this will be bad for the long-run since future revenues and sales will suffer due to the lower awareness of customers on the company's product.

Answer 2

financial managers view point is to express the financial statement in good condition to secure his career as a manager because this tells his effectiveness on his position , but the view point of the stockholder is to enhanced his share of stocks or make a better profit every declaration of company dividends for the security of their investment in the company...