Fundamentals of Financial Management: Chan, Kok, Kwan, Ooi, Nur Hafizah, Kuah, Tan, Lau, Mohd Edil, Wong, Lee, Ting, Kweh, B Rajesh, Rusliza and Norazidah (2026)
Fundamentals of Financial Management: Chan, Kok, Kwan, Ooi, Nur Hafizah, Kuah, Tan, Lau, Mohd Edil, Wong, Lee, Ting, Kweh, B Rajesh, Rusliza and Norazidah (2026)

This book is truly a collaborative effort, made possible by the contributions of a talented group of authors, each bringing their own expertise to enrich the content. Together, we have covered a broad range of topics, from the basics of financial statements and capital budgeting to more advanced subjects like international finance and risk management. Our goal has been to make the material not only informative but also accessible, practical, and insightful—no matter where you are in your financial journey.

Financial management is at the heart of every successful business, guiding decisions that drive growth, stability, and long-term success. In Fundamentals of Financial Management, we have aimed to provide you with a clear understanding of the key financial principles that will help you navigate today’s complex economic environment.

The content of this book is organized to walk you through a variety of important topics. We start with the foundational elements—such as financial statements and markets—and gradually introduce more complex areas, such as risk management, capital budgeting, and corporate restructuring. Whether you are a newcomer to finance or looking to refresh your knowledge, this book offers practical insights and real-world examples to help you along the way.

We have designed this book with a commitment to making complex financial concepts easier to grasp. From understanding the time value of money to analyzing capital structure and firm payout policies, we hope this text provides you with the tools and confidence to make sound financial decisions in your own work or studies.

ISBN 978-967-2711-28-5 – Contents in 4-colour

About the Authors

Chan Ling Fong
Dr. Chan Ling Fong is a distinguished professional with over 15 years of academic experience. He holds a PhD in Finance (2018) and an MBA in Finance (1999) from the prestigious University Putra Malaysia (UPM), as well as a Bachelor of Economics (Honours), majoring in Econometrics (1994), from the University Utara Malaysia (UUM). Complementing his academic credentials, Dr. Chan has also earned a Professional Diploma in Property Surveying (Valuer) from RISM and a Diploma in Real Estate Management from UCSI University.

Currently serving as a senior lecturer and Programme Leader for the Master of Finance, Dr. Chan is actively engaged in impactful research, specializing in economics and finance. His work has been published in reputable journals such as Gondwana Research, Tourism Planning & Development, Tourism: An International Interdisciplinary Journal, Journal of Environmental Management International, Journal of Tourism Cities, Global Business and Organizational Excellence, Journal of Property Investment & Finance, and International Journal of Economic Research. He has also contributed a book chapter on Emerald Insight.

Before transitioning to academia, Dr. Chan gained over 20 years of comprehensive experience in sales, marketing, and finance across small, medium, and large enterprises. He held key positions in renowned global multinational corporations, including Dell Asia Pacific, where he served as Regional Marketing Manager for South Asia, and Samsung Malaysia Electronics, where he was Country Head of Sales & Marketing for the IT Component Division. Additionally, he led as Head of SME Channel Sales at Trend Micro.

Dr. Chanʼs professional journey also includes roles with local MNCs such as CNI Corp, where he served as Regional Marketing Manager for the Asia Pacific. His expertise extended to the financial sector, notably with Malaysia Building Society Berhad (under the Ministry of Finance Malaysia), where he held the position of Head of Property Research.

In addition to his corporate roles, Dr. Chan is a licensed remisier with KNN and formerly served as a Fund Manager for Hasco International, an investment house based in Singapore. He is a Certified Financial Planner (CFP) with the Financial Planning Association of Malaysia and a Registered Finance Planner (Shariah) with the Malaysian Financial Planning Council (MFPC). He is also a lifetime member of the Malaysian Economic Association (MEA) and the Malaysian Finance Association (MFA).

Dr. Chan is committed to social responsibility, having been actively involved in Environmental, Social, and Governance (ESG) initiatives with the Malaysian Association of Public Advocacy for Nature (MAPAN) and serving in the Malaysian Armed Forces (ATM) for a decade, retiring with the rank of Lieutenant. His diverse skill set is further reflected in his professional real estate agent license, highlighting his dedication to excellence across multiple fields.
Kok Shiau Hui
Kok Shiau Hui is an academic with a background in economics and finance. She earned both her Bachelorʼs degree in Economics and her PhD in Business Economics from Universiti Putra Malaysia (UPM).

Before pursuing her PhD, Renee worked in the financial industry for three years, gaining valuable experience in various aspects of finance. She has been teaching economics and finance for eight years, focusing on helping students understand and apply these concepts effectively.

Her experience in both the financial sector and academia shapes her writing, aiming to present economic and financial concepts in a clear and accessible manner for her readers.
Kwan Jing Hui
Dr. Kwan Jing Hui, a seasoned educator and Corporate Finance expert with a Doctorate in Corporate Finance from the University of Malaya (UM), has over 18 years of experience. Her passion for teaching and research, evident in her roles at Multimedia University, Malaysia, is fortified by her Master of Finance from the University of New South Wales (UNSW) and a BBA (Hons) in Banking & Finance from Multimedia University (MMU).

As an Assistant Professor and Program Coordinator, Dr. Kwan excels in curriculum development, student mentorship, and fostering academic growth. Her scholarly contributions focus on Corporate Finance, Corporate Governance, and Sustainable Finance. Beyond academia, she extends her influence on industry mentorship, professional training, and securing research grants, underscoring her commitment to educational and societal development.

Her proficiency in blended learning, educational technology, and team-based teaching methodologies underscores her adaptability in the modern educational landscape. Overall, Dr. Kwan stands as a dynamic educator and prolific researcher, shaping the field of Corporate Finance and nurturing future professionals.
Ooi Chai Aun
Ooi Chai Aun, obtained his PhD from Universiti Sains Malaysia (USM) in 2019 and worked as a postdoctoral fellow at USM from 2018-2019. Subsequently, he joined Universiti Utara Malaysia (UUM) as a senior lecturer and continues in this role to date. He was also the research fellow of Economics, Financial Policy Institute (EcoFI), Universiti Utara Malaysia in 2023. He is the life member of Malaysian Finance Association (MFA) and the Malaysian Economy Association (MEA). His research interest area is corporate finance, specializing in corporate governance, managerial risk-taking, and corporate sustainability. His research outputs have been published in Social Science Citation Index journals and Scopus-indexed journals, including Pacific-Basin Finance Journal, Tourism Management, Global Finance Journal, Asian Academy of Management Journal of Accounting and Finance, Managerial Finance, Journal of Financial Reporting and Accounting, Malaysian Journal of Economic Studies, International Journal of Business and Society, and more. Currently, he serves on the editorial boards of two journals, namely the Asian Academy of Management Journal of Accounting and Finance and Capital Markets Review. His contributions to financial literature and knowledge establishment have earned him several Best Paper Awards at several international conferences, including the Malaysian Finance Association International Conference in 2020 and 2021, The International Conference on Applied Economics and Policy 2017, International Conference on Contemporary Issues in Accounting and Finance in 2015, and more.
Nur Hafizah Mohammad Ismail
Nur Hafizah Mohammad Ismail is a Senior Lecturer at the Department of Finance, School of Economics, Finance & Banking in Universiti Utara Malaysia. She obtained her Diploma in Banking and Bachelor degree in Business Administrations (Hons) Finance from Universiti Teknologi MARA. Then, she pursued PhD degree in Industrial and Development Economics and Advanced Diploma in Higher Education Teaching and Learning from Universiti Utara Malaysia. She teaches courses Financial Management, Advanced Financial Management, Financial Markets & Institutions, Ethics & Governance, Portfolio Management and Derivatives & Risk Management for undergraduate program. She also teaches Corporate Finance and Financial Reporting & Statement Analysis for postgraduate program. She focuses her research on the field of financial economics.
Kuah Yoke Chin
Kuah Yoke Chin is an Assistant Professor for the Faculty of Business & Finance, University Tunku Abdul Rahman (UTAR), Malaysia. She earned her Doctor of Philosophy (Finance) from University Tunku Abdul Rahman. Her research interest fields are Finance and Economics. She has a publication in Global Business Review, Journal of Halal Industry and Services, International Journal of Economics and Management, Gadjah Mada International Journal of Business and etc.
Tan Yeng May
Dr. Tan Yeng May is the Head of the Master of Economics in Finance program and an Assistant Professor of Finance at the School of Economics and Management, Xiamen University Malaysia. She earned both her Bachelor of Science and Master of Business Administration with a focus on Finance from the University of Missouri-Columbia, USA, and holds a PhD in Finance from Universiti Putra Malaysia. Dr. Tan’s research interests include ESG analysis, sustainable finance, trading strategies, digitalization, and entrepreneurship. Since 2020, she has also served as the Chair of the School’s External Affairs Committee.
Lau Wei Theng
Lau Wei Theng is a senior lecturer at the School of Business and Economics, Universiti Putra Malaysia. He received his Ph.D. from Universiti Putra Malaysia. He is a CFA charterholder and has been a consistent practitioner, instructor, and researcher in finance and investment. His relevant areas of teaching cover Financial Management, Corporate Finance, Investment and Portfolio Management, Financial Markets, International Finance, and Statistics.
Mohd Edil Abd Sukor
Mohd Edil Abd Sukor is currently a Senior Lecturer at the Department of Banking and Finance, Faculty of Business and Accountancy, University of Malaya. He lectures Financial Management subject for both undergraduate and postgraduate programs. He holds a PhD in finance from the University of Melbourne, Australia. Additionally, he is also on the committee board of the Malaysian Finance Association from 2015 - 2018.
Wong Mei Foong
Dr. Wong Mei Foong is an Associate Professor at the Faculty of Accountancy, Finance and Business at Tunku Abdul Rahman University of Management and Technology (TARUMT). Her primary research interests include development economics and finance. She holds a PhD in Development Economics and a Master of Science in Financial Economics, both from the University of Putra Malaysia. Her scholarly work has been featured in prominent journals such as the Economic Studies Journal, Global Business and Economics Review, International Journal of Business and Society, International Journal of Supply Chain Management, International Journal of Economic Policy in Emerging Economies, International Journal of Economics and Management, and Managerial Finance. Additionally, Dr. Wong is a certified financial planner.
Lee Siew Peng
Lee Siew Peng, is an Assistant Professor at the Faculty of Accountancy and Management, Universiti Tunku Abdul Rahman, Malaysia. Her research interests are primarily in corporate finance, with particular emphasis on corporate governance, corporate sustainability, analyst forecasts, payout policies, and Shariah screening. Her research can be found in refereed international journals including Corporate Social Responsibility and Environmental Management, Review of Managerial Science, Managerial Finance, ISRA International Journal of Islamic Finance, and Journal of Islamic Accounting and Business Research. She has been a visiting scholar at the Oxford Centre for Islamic Studies, Oxford University.
Irene Ting Wei Kiong
Dr. Irene Ting Wei Kiong is an associate professor of Finance at Faculty of Industrial Management, Universiti Malaysia Pahang Al-Sultan Abdullah, Malaysia. She has spent almost two decades in teaching finance courses at tertiary level. She has been teaching at universities since 2007, most of which were Finance subjects such as Contemporary Issues in Finance, Financial Management, Financial Management for Accounting, Financial Markets & Institutions, International Finance, Financial Statement Analysis, Principles of Finance, and Investment Analysis, to name just a few. Besides, she has published extensively in top journals, with focuses on performance management, behavioural finance, corporate governance, intellectual capital, capital structure etc. She has received several best paper awards for her research works from various international conferences. She has yielded a well-rounded set of skills via her on-the-job, particularly the experiences being the Deputy Dean of Research and Postgraduate, Director of International Rankings and Branding Division, Director of Career Placement and Development Centre. She is currently the Editor-in-Chief of the International Journal of Industrial Management.
Kweh Qian Long
Kweh Qian Long is a Professor at the School of Management of Canadian University Dubai, United Arab Emirates. He is a qualified academic having over 15 years of experience and passion into tertiary teaching and empirical research. He has had articles published in ISI-indexed journals with wide readership like European Journal of Operational Research, OMEGA - The International Journal of Management Science, Journal of Knowledge Management, Journal of Intellectual Capital, Journal of the Operational Research Society, Applied Economics, and International Review of Financial Analysis.
B Rajesh Kumar
B Rajesh Kumar is a Professor of finance and Dean - Academics at Institute of Management Technology, Dubai. He received his Ph.D. from the Indian Institute of Technology, IIT Kharagpur. His research interest is in areas of ESG, applied corporate finance, valuation & mergers and acquisition. He has published over 70 empirical research papers in refereed ABDC/ISI/Scopus category journals. He has authored 10 scholarly books of which three were published by Academic Press Elsevier, four by Springer - Management for professionals’ series, one each by Palgrave Macmillan, McGraw-Hill and ICFAI Books.
Rusliza Yahaya
Dr. Rusliza Yahaya is a Senior Lecturer at Universiti Pendidikan Sultan Idris, with over 20 years of teaching experiences. She holds a B.A. in Accounting and Finance from Plymouth University, United Kingdom, and a Master of Accounting from Universiti Teknologi MARA, Malaysia. She further advanced her academic journey at Nova Southeastern University, Florida, where she earned her doctorate and was honoured with a Distinguished Thesis Award. Dr. Rusliza has made substantial contributions to the fields of accounting and finance through her research, teaching, and numerous published works. Beyond her academic accomplishments, she is a Registered Financial Planner (RFP) under the Malaysian Financial Planning Council, demonstrating her commitment to bridging academia and practical financial expertise.
Norazidah Shamsudin
Datin Norazidah Shamsudin is a Finance lecturer at the Faculty of Industrial Management, Universiti Malaysia Pahang Al-Sultan Abdullah. She began her academic career in 2007 at Universiti Teknologi MARA (UiTM), after working in the industry with Maybank Berhad and Sharikat Permodalan Kebangsaan. She holds a Diploma in Banking, a Bachelor of Business Administration (Hons.) Islamic Banking from UiTM, and a Master of Business Administration (Islamic Banking and Finance) from the International Islamic University Malaysia (IIUM). Currently, she is pursuing a PhD in Business Administration (Finance), IIUM. Since 2007, Datin Norazidah has taught various finance courses for Diploma, Bachelor’s Degree, and Master’s program. Her teaching portfolio includes Financial Management, Financial Analysis, Investment Management, Finance for Entrepreneurial Decision-Making, Banking Operations and Documentation, Islamic Financial Systems, and Engineering Economics, among others. Her research focuses on financial performance, Islamic banking, fintech, and online learning. She is actively involved in academic writing as a principal author, co-author, editor, and reviewer, and is committed to sharing her expertise and knowledge with the broader academic and professional community.

Table of Contents

About the Authors
Preface
Acknowledgments
Brief Contents
Table of Contents
Chapter 1 Introduction to Financial Management
Chapter 2 Accounting Standards, Financial Statement Materials,
Financial Statement, Taxes and Cash Flow
Chapter 3 Financial Market Environment
Chapter 4 Time Value of Money
Chapter 5 Bond Valuation
Chapter 6 Introduction to Risk and Return
Chapter 7 Stock Valuation
Chapter 8 Costs of Capital
Chapter 9 Capital Budgeting Techniques
Chapter 10 Capital Budgeting Cash Flows
Chapter 11 Free Cash Flow and Calculation
Chapter 12 Capital Structure and Leverage
Chapter 13 Firm Payout Policy
Chapter 14 Short–Term Financial Decisions
Chapter 15 Financial Planning and Forecasting
Chapter 16 Corporate Restructuring
Chapter 17 Risk Management and Derivatives
Chapter 18 International Financial Management
Index

Instructors Supplements

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