finance google

finance google

The Importance of Finance in Google

1. Introduction

Still the general question of how important the Internet has become for finance has not really been addressed. This paper begins to answer this question by providing evidence on Google searches about firms’ stocks, annual returns of stocks in Nasdaq, and the S&P500. The top ten most popular websites in the world as of October 2005 found that Google is ranked no. 1. They describe Google visitors as about 60% male, are 77% work, and are relatively affluent with 46% of their visits from those with income over $60,000. Yet 13% apparently are college students. To determine the number of searches about Google’s stock we view data collected from 01/04/2004 to 31/08/2005 using Google searches of stock symbols. These searches are described at a particular date for Google’s stock symbol, searches) are made in English.

Google’s mission is to organize, provide access to, and build useful things from the world’s information, and to do so in a way that doesn’t do evil. Whether they have met this mission has yet to be seen. With over 103,550,000 indexed web pages that deal with Google – even more have Google in the page’s title – and having a market cap of about 150 billion dollars, Google has attracted considerable attention of investment analysts in their relatively brief lifespan of a little over seven years. Several academic papers use financial terms and numbers in judging Google’s or other Internet firms’ actions, but only a few investigate the financial consequences and determinants of Google’s performance. More recently a special issue in the Journal of Policy and Research in Computers, Finance and Society investigates not just Google but several financially important Internet applications. It looks at how the Internet interjects financial market’s attention effects and emphasizes the special way that the Internet shapes that market through processes of “self-fulfilling expectations”.

2. Financial Management

Google company or Alphabet Inc. belongs to a country with a large-scale business. In the financial view, many companies that can be classified as large-scale companies have the financial functions at one corner of their company. Alphabet Inc. Google is in charge of corporate finance, which functions in terms of financing activities for business activities undertaken by Google. The presence of a corporate finance division shows that the company, in principle, has had reliable financial management, considering that the holder of financial management or also referred to as the Chief Financial Officer (CFO) who holds the task of leading the financial function or also referred to as the Finance function in Google is entrusted to leading professional financial management in a company. In addition, in realizing its management, a company needs information for decision making within the company in order for good and efficient management.

A view that even in companies engaged in non-financial sectors, such as Google, there is still a need for the finance function is true. This is because these companies still have much financial management, and financial management is still an important part of business management. However, until now, the Google company has never revealed in detail how the overall views regarding the financial function at its company are, and the roles and responsibilities in it using non-empirical information. The problem is, there has not been as yet empirical research regarding the discussion of the existing financial function at Google Company.

3. Investment Strategies

Purchasing managers have a strong incentive to learn to improve strategically, which places other investment staff in a disadvantaged position in terms of management capacity, given the challenges associated with covered or adequately funded R&D projects and other potential acquisition opportunities. The results suggest that the financing commitment made by the investable pertain to the need to derive financing costs from cash flow rather than the search for investment opportunities within a firm asset market. The results imply that the search for or acquisition of long-term low-risk assets for a firm’s entire business and its investment in optimizing enterprise-type of structures are factors providing financing opportunity constraints, and trigger investment commitments, respectively. Levels of investment opportunities are measured as the standard deviation of the firm’s market value. Further tests indicate that venture capital availability reduces the severity of financing neticity that allows firms to embark on less profitable growth opportunities, which darken the future of investment opportunities.

Once firms achieve their target cash and investment levels, investment and financing activities become linked, as the additional raises in funds can be interpreted in terms of investment needs as well. Firms tend to finance their productive investments with a mix of internal and external funds. A highly dependent investment firm finances its investments with a lower proportion of the cash flow. The initial levels of corporate investment determine both the major investment and financing choices. My hope is that any of the suggested measures will be able to distinguish between firms based on their financing needs regardless of how these needs are fulfilled. Investment opportunities are those characterized by proposed positive present value contributions, and capital expenditures are related to future investment needs. I have demonstrated that measures of investment valuations are positively related to future workload changes and current investment opportunities. Given the increasing need to train and responsively adapt the acquisitions of these new chief executive officers to their company’s investment needs, it is important to realize that these board members could be well adapted to market signals, rather than their own perceptions and challenges of market evolution.

4. Risk Management

With regard to our balance sheet, this risk is primarily managed to understand our business model and the associated transaction and financing needs. In this regard, we use sensitivity analysis and stress tests to make our risks more predictable. We use various models to assess the potential impact on our income statement and fair value risk changes. Please note that these analytical methods are based on several factors that may not necessarily occur simultaneously. Therefore, the results of these analyses show the impact of the individual risk factors on our future financial results. Our primary objective for assessing and managing exposure to risk that could result from changes in interest rates is to protect the company’s cash position, which is more liquid in Treasury. We manage our interest rate risk by actively maintaining a mix of cash and investment reserves consisting of short-term banked deposits and fixed income securities. Our investment policy is designed to mitigate the risk of loss of capital. Shell maintains a diversified investment portfolio.

Risk management is a top priority for our company. If we fail to manage our risks, we won’t achieve the success of our company. We face various forms of financial, strategic, and compliance risks in our business and are working to reduce these risks at the appropriate high level. Considering interest rates on cash, on the one hand, and this risk in an online-based company, on the other hand, completes our policy of managing risks as a strategic necessity. Identifying and mitigating these risks requires continuous efforts of different teams, including treasury, technical accounting, compliance, audit, legal, and security teams, to understand and manage the risk-taking activities of our company. To ensure compliance with laws and regulations, our corporate responsibility committee is responsible at the highest level while the operational risk management program continues rising in importance and is responsible for addressing areas of interest.

5. Conclusion

To conclude, this paper provides evidence of the existence of a living, breathing body of market regulators, operators, security analysts, and instructors. Consequently, it further vouches for the validity of the efficient market hypothesis at the semi-strong form, at least for the years 2005 to 2013 based on the monthly returns on Google. This paper also shows the impact of micro factors such as accounting earnings, accounts receivables, inventories, current assets, taxes, and macro factors such as the economy and business cycle represented by interest rates and the S&P 500 on stock prices satisfactorily related to stockholders’ assets. Hence, this paper takes some of the wind out of the sails of the followers of the macro and micro factors of January and other seasonal variations in stock prices by showing here that stock prices are connected with macro interest rates and the S&P 500 stock price index satisfactorily only since 2009 and 2001, respectively, on the stock prices of the company. Furthermore, consistent with the findings of other researchers, this paper shows growth in the economic activities of the company as well as the continuance of the business cycles with the current assets, inventories, and accounts receivables emboldening while the inventory is risk reducing. Additionally, drawing evidence from the improvement in the working capital ratios over time and the persistence of size and book to market value, this paper shows evidence that may support the pragmatic option pricing theory.

This paper illustrates the importance of finance in a vibrant and prosperous company – the search engine company Google. Insights are also presented on numerous vital categories of finance, including risk management, the efficient market hypothesis, financial statement analysis, timing the market, business finance, irrational exuberance, experts’ stock selections, cash flow management, derivative securities, divorce financial planning, and option pricing theory. Based on the interactions between these categories of finance and the fact that success generally has many fathers while failure is an orphan, one can conclude that, as a vibrant company, finance, closely and continuously tied to the operation of the business, grows and proliferates, while it dwindles and desiccates in a moribund company.

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