Running head: INTEGRATION OF FAITH AND LEARNING 1
BUS 530 – Integration of Faith and Learning
Henry Adu Coleman
Liberty University
INTEGRATION OF FAITH AND LEARNING 2
Managerial finance is primarily a discipline that deals with an individual’s ability to adapt
to changes, raise funds, invest in assets, and manage wisely to achieve success (Hacioglu and
Dincer, 2016). It deals with acquisitions, financing, management of assets and cash flows to
match organizational goals and objectives (Hacioglu and Dincer, 2016). All these concepts and
knowledge were founded on the principles of the word of God. According to Psalm 24:1, the
world and its dwellings were created by God. Again, this concept entails the acquisition of assets
and resources, manage our finances and assets, which defines the whole duty of men since the
creation of the world. According to Genesis 1:28 -29, God commanded man to take possession of
everything He created, keep it and take good care of it for multiplication. This means that man is
charged by God to own assets and resource either by direct inheritance or purchase, to keep and
manage it so as to generate returns for the future generation. Therefore, all these activities must
be done to glorify God because He gives man the ability to make wealth as a covenant, so
remember Him (Deuteronomy 18:8).
Managerial finance covers a broad area of corporate governance, financial markets, and
institutions, accounting, and finance, measuring corporate performances, the value of money,
valuing bond, valuing stock, project analysis, discounted cash-flow analysis and many more. All
these concepts can be traced from the Bible, therefore, need to be applied according to the Word
of God in our everyday business activities. However, this Integration of Faith and Learning (IFL)
paper will be focused on three aspects of managerial finance, namely corporate governance,
understanding financial markets and institutions and measuring corporate performance.
In dealing with corporate governance, it is focused on the corporate ability to make
investment and financial decision (Balachandran and Williams 2018). This decision is made
towards acquisition of assets by either borrowing, reinvestment of profits or selling shares to the
INTEGRATION OF FAITH AND LEARNING 3
public. Again, it studies the roles and goals of financial managers towards maximizing profit and
market value for shareholders (Balachandran and Williams 2018). All these are built on the
principles of the scriptures. From the beginning of creation, man was created with duty as a
steward entrusted with assets, skills, and talents to utilize and generate returns. In order to
achieve these returns, it needs to be entrusted into committed and wise hands with a set of
guidelines to follow for returns (Genesis 2: 15, Matthew 25: 15 – 30). In the same way company
owners and shareholders seeks to entrust their business and investment into the hands of
hardworking and committed steward to help manage it for maximum returns. Whoever is
unfaithful in handling finances, no riches will be entrusted to that person (Luke 16:11).
Therefore, Christian studying and practicing finance are expected to put into practice all these
principles to add value to any resource assigned to them for keep. In order to achieve expected
results of shareholders and employers, finance manages needs to seek God’s help for excellence
performance like Daniel (Daniel 1:17).
Again, managerial finance discusses the need to understand financial markets and
institutions as a financial manager. This concept explains the nature of financial markets and
institutions such as stock, bond, banks, insurance companies, pension, and mutual fund; and their
role of financing businesses for grow (Lin, Sun and Yu, 2018). Again, this concept studies how
prices are determined in the financial market (Lin et al., 2018). Therefore, there is a need for
financial managers and corporates to understand how the market operates in order to make good
financial decisions of choosing the best institution to engage their services. In the same vein, the
Bible teaches about the importance of acquiring knowledge about what you do. According to 2
Kings 3:7-14, King Solomon asked God for a discerning heart to govern his nation and God
answered his prayer. He led his people well and made good decisions that made him rich and
INTEGRATION OF FAITH AND LEARNING 4
successful. Again, Apostle Paul teaches the importance of to study to show ones self-approved as
a worker (2 Timothy 2:15), the need to study to show ones self-approved as a worker. This same
principle is applied by every corporate entity demanding fruitful results from its employees.
Many corporates are maximizing returns as a result of their in-depth knowledge in finance and
stock market operations. In contrast, other firms are making losses due to a wrong financial
decision making due to lack of understanding in the financial market operations. Apple is leading
on the NASDAQ market with a market capitalization of $868.8 billion because it understands
how the financial market operates (Hall, 2019).
Furthermore, measuring corporate performance is also an aspect of managerial finance.
This also discusses indicators used to measure the performance of corporates (Belghitar, Clark
and Kassimatis, 2018). There are indicators used to determine whether managers are adding
value to the business investment or not. Again, it aims at factors that contribute to market value
and measures used to access debt policy and liquidity (Belghitar et al., 2018). Financial
performance of corporate is measured using financial ratios calculated from the firm’s income
statement and balance sheet (Belghitar et al., 2018). Examples of these financial ratios are return
on capital, return on equity, return on assets (economic value); asset turnover, inventory turnover
and receivables turnover (efficiency value); debt ratio, times interest earned ratio, cash coverage
ratio (financial leverage); rate of return and cash ratio, current ratio and quick ratio (liquidity).
These financial ratios are also used as reporting statement for accountability in corporate entities.
This is also related to God’s nature of accountability in man (Matthew 25:19). As Christian
financial managers, God expects us to be accountable for everything we do. However, as
corporate owners and shareholders, in as much you want to maximize profit and market value; it
must not be overestimated but moderate (Hebrews 13:5). So, as Christians in business, must not
INTEGRATION OF FAITH AND LEARNING 5
be lover of money but rather with what you have (1 Timothy 6:10). In conclusion, all financial
activities we engage in must be in conformity to the Word of God.
INTEGRATION OF FAITH AND LEARNING 6
References
Belghitar, Y., Clark, E., & Kassimatis, K. (2018). A measure of total firm performance: New
insights for the corporate objective. Annals of Operations Research, 1-21.
doi:10.1007/s10479-018-2983-z
Hall, J., (2019). The 30 Largest Companies on the Stock Market. Retrieved from
https://www.fool.com/investing/2017/12/05/the-30-largest-companies-on-the-stock-
market.aspx Hacioglu, U., & Dincer, H. (2016). Managerial issues in Finance and
Banking. Springer International Pu.
Balachandran, B., & Williams, B. (2018). Effective governance, financial markets, financial
institutions & crises. Pacific-Basin Finance Journal, 50, 1-15.
doi:10.1016/j.pacfin.2018.07.006 Lin, E. M. H., Sun, E. W., & Yu, M. (2018). Systemic
risk, financial markets, and performance of financial institutions. Annals of Operations
Research, 262(2), 579-603. doi:10.1007/s10479-016-2113-8
Belghitar, Y., Clark, E., & Kassimatis, K. (2018). A measure of total firm performance: New
insights for the corporate objective. Annals of Operations Research, 1-21.
doi:10.1007/s10479-018-2983-z
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