FINANCIAL MODELLING AND CORPORATE GOVERNANCE: A FEMINIST PERSPECTIVE USING AN OPTIMIZATION APPROACH

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Abstract

This study is aimed at projecting the financial condition of the company using the feminist ethics of care integrated in corporate governance principles. The research question to be answered is: How the financial condition of the company in the future is affected if the feminist ethics of care is applied in its corporate governance practices? The research question is answered using the quantitative optimisation method to develop the financial planning model for the period 2012-2016. BHP Billiton which is one of the world’s largest resources company is selected to be the sample of this case study. The projection of the financial condition for the five-year period 2012-2016 showed that BHP Billiton, Ltd. can achieve an overall positive economic value retained in the projected period even though negative results exist for 2015 and 2016. Sensitivity analysis was performed by providing two examples of alternatives or scenarios to show the impact on the projected financial condition. It can be concluded that the Company’s financial condition will be stable in the future. The use of the ethics of care simultaneously as a lens to support corporate governance practices and as guidance in financial projection has not been conducted in previous studies. This study therefore, offers an original contribution to the literature of corporate governance, business ethics and financial planning.

Keywords: Financial Management, Corporate Governance, the Ethics of Care

How to cite this paper: Adhariani, D. (2015). Financial modelling and corporate governance: A feminist perspective using an optimization approach. Risk governance & control: Financial markets & institutions, 5(4-2), 271-288. https://doi.org/10.22495/rgcv5i4c2art2