Top 5 Best Financial Management Book (Update 2021)

Overview:

Financial Management is one of the most important functions that could help the organization reach its objective. The major roles and responsibilities related to financial management are Financial Budgeting, Financial Reporting, Cash Management, Managing People in Finance department or division and other related tasks.

Financial management now also play the roles that involved with a financial decision, strategic financial management, investment decision, as well as advising the board in dividend pay decision.

Financial management now transforms from traditional financial management roles to strategic financial managements which is significantly related to strategic as well as operation.

The following are the list of best Financial Management book that selected based on the quality of contents which included in the book, natural explanation of the subjects that are covered in, the reputation of authors, as well as the rating from readers.

#1) Financial Management: Theory & Practice:

Financial Management: Theory & Practice: This is one of the best Financial Management Book that covers many important and interesting topic around financial management as well as corporate finance.

Key topics covered in the book:

  • Company and its environment: Overview of financial management, financial environment, Financial Statements, cash flow and tax, Financial Statement Analysis
  • Fixed Income Securities: Time value of money, The tabular Approach, Derivation of Annuity Formulas, Continuous Compounding, Bond, Bond Value, and Interest,
  • Stock and Option: Risks and Return, Corporate Valuation and Stock Valuation, Financial Option, Application in Corporate Finance,
  • Projects and Their Valuation: Cost of Capital, Basic of Capital Budgeting, Cash Flow Estimation and Risk Analysis.
  • Corporate Valuation and Corporate Governance: Corporate Valuation and Financial Planning, Corporate Governance.
  • Cash Distribution and Capital Structure: Distribution to Shareholders and Repurchase, Capital Structure Decision, Degree of Leverages, Capital Structure Theory,

Author:

Dr. Eugene F. Brigham is Graduate Research Professor Emeritus at the University of Florida, where he has taught since 1971. Dr. Brigham received his M.B.A. and Ph.D. from the University of California-Berkeley and his undergraduate degree from the University of North Carolina. Prior to joining the University of Florida, Dr. Brigham held teaching positions at the University of Connecticut, the University of Wisconsin, and the University of California-Los Angeles. Dr. Brigham has served as president of the Financial Management Association and has written many journal articles on the cost of capital, capital structure, and other aspects of financial management.

He has authored or co-authored ten textbooks on managerial finance and managerial economics that are used at more than 1,000 universities in the United States and have been translated into 11 languages worldwide. He has testified as an expert witness in numerous electric, gas, and telephone rate cases at both federal and state levels.

He has served as a consultant to many corporations and government agencies, including the Federal Reserve Board, the Federal Home Loan Bank Board, the U.S. Office of Telecommunications Policy, and the RAND Corporation. Dr. Brigham continues to teach, consult, and complete research in addition to his academic writing. He spends his spare time on the golf course, enjoying time with his family and dogs, and tackling outdoor adventure activities, such as biking through Alaska.

Using the book:

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Most of the readers who purchase this book were the MBA students in finance. This book could provide a fresh review as well as the principles of finance. Most of the theory related to finance are covered in the book with well explanation.

#2. Fundamentals of Financial Management, Concise Edition:

Fundamentals of Financial Management, Concise Edition: This book is really good for those who want to understand what corporate finance is or want to know how corporate finance practice in the corporate world.

Extremely student-friendly, this complete introduction to corporate finance emphasizes the concept of valuation throughout and Time Value of Money (TVM) early in the text — giving you time to absorb the concepts fully.

Numerous up-to-date examples, end-of-chapter applications, and Integrated Cases give you a better understanding of the concepts and reasons behind corporate budgeting, financing, and working capital decision making.

In addition, Excel Spreadsheet Models help you master this critical software tool, while an all-new Adaptive Test Prep app helps you thoroughly prepare for exams.

#3. Financial Management: Core Concepts

Financial Management: Core Concepts: Author: RAYMOND M. BROOKS is a Professor of Finance at Oregon State University. He has taught a variety of finance courses, including an introduction to financial management, investments, advanced corporate finance, financial institutions, financial planning, and risk management.

Previously, he taught at Washington University in St. Louis; the University of Southern Illinois, Edwardsville; and the University of Missouri–Columbia. Professor Brooks has authored a variety of articles on topics from dividends to when-issued trading.

He has twice won best papers awards at financial conferences. Professor Brooks was a springboard diver for the Oregon State swim team and continues to enjoy swimming, hiking, music, reading, and watching OSU athletic teams.

#4. The Richest Man in Babylon by George Samuel Clason

The Richest Man in Babylon was published in 1926 and it is still one of the best financial management books in the world. It is written by George Samuel Clason who beautifully explained the financial management with the collection of parables set in ancient Babylon.

The Babylonians discovered the basic principles of financial management such as investing it wisely, learning how to protect the wealth, how to lend money instead of borrowing.

In the book you will learn these lessons: Live below your mean, Learn how to be lucky and Never take on Debt.

If you are looking for a great financial management book then The Richest Man in Babylon is for you.

#5. The Essays of Warren Buffett: Lessons for Corporate America

The Essays of Warren Buffett: Lessons for Corporate America: Warren Buffet is regarded as the world’s greatest investor and in this book, you will read his letter to Berkshire Hathaway shareholders. The book is written in plain English so there will be no complex financial terms.

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In this book, you will find topics like corporate governance, corporate finance and investing, Common stock, accounting, and valuation, etc.

The best thing is that all of these topics are explained by the Warren Buffet himself and it is a great book for those who want to learn financial management from Warren Buffet.

#6. The Meaningful Money Handbook by Pete Matthew

The Meaningful Money Handbook by Pete Matthew: Pete Matthew is regarded as one of the best personal finance experts in the world. In this book, you will get everything you need to know and do to build a secure financial future.

In the book, Pete has focused on three main steps: Spend less than you earn and clear debt, Insure against disaster and build up savings and invest wisely. You will also learn some other techniques for financial management and how to get rid of debt.

Pete Matthew explained all these steps in plain English and this book is a practical guide on how you can work your way to future financial freedom.

#7. Financial Management by Eugene F. Brigham and Michael C. Ehrhardt

Financial Management by Eugene F. Brigham and Michael C. Ehrhardt: Financial Management is the perfect book for those who want a balance between theory and practical knowledge of financial management.

Financial Management is the perfect book for those who want a balance between theory and practical knowledge of financial management.

Eugene F. Brigham and Michael C. Ehrhardt are renowned financial writers and on this book, they have explained the important concepts of finance in a beautiful way.

The book is divided into multiple sections, the book starts with the presentations of the fundamentals of corporate finance which help you to understand the corporate finance in a good way and then the authors move to the other financial techniques.

Authors have also explained the latest financial issues and economic crises with full references for better understanding. If you want a good financial management book then you will like this book.

#8. The Basics of Public Budgeting and Financial Management by Charles E. Menifield

The Basics of Public Budgeting and Financial Management is a great book for those who want to understand the different aspects of the budgeting process and financial management of the state government.

In this book, the author has explained the budgeting process step by step. The author has also explained the different technical concepts and skills which are important for the budgeting process and there are practical exercises provided to apply these concepts. If you are looking for top financial management book then this book is for you.

#9. The Economist Guide to Financial Management by The Economist and John Tennent

The Economist Guide to Financial Management by The Economist and John Tennent: Financial Management is a tricky process and this book will help you to make logical decisions by helping you understand the different aspects of financial management. John Tennent is a well-known financial expert and he has been into this business for more than 20 years.

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In this book, the author explained the different concepts of financial management like assembling a budget, reading variances on a report and consulting a proposal, etc. in a very good way.

The book has multiple chapters and each chapter will provide you with a sound understanding of various principles of financial management.

#10. When Genius Failed by Roger Lowenstein

When Genius Failed by Roger Lowenstein: This book explains the very famous Wall Street Trader John Meriwether who was one of the most brilliant brains in the industry. In this book, you will learn about a company who made more than $100 billion but still, it failed and suffered a terrible disaster.

This book is an excellent read for finance students as it provides sufficient background that gave rise to the scenario. If you are into financial management or hedge funds then this book is for you.

#11. The Little Book of Behavioral Investing by James Montier

James Montier is regarded as one of the top-rated strategists for more than one decade and he is also the Co-Head of Global Strategy at Society General.

He has vast experience in dealing with the financial market and in this book, he explained how to take the long-term investment decisions and now to make any mistakes.

The author also explained the three major factors which can lead to financial loss for investors on his investments. In this book, you will also learn about behavioral finance.

If you are looking for the best financial management book for investors then this book is for you.

#12. The Total Money Makeover: A Proven Plan for Financial Fitness by Dave Ramsey

The Total Money Makeover: A Proven Plan for Financial Fitness by Dave Ramsey: Dave Ramsey is a successful businessman and author and in this book, he has explained different techniques to achieve the total financial fitness. This book is one of the best financial management books in the market and it is also the New York Time bestseller.

In the book, Dave Ramsey debunks many financial myths and give a practical approach to achieve financial health. “The Total Money Makeover” isn’t just theory, in fact, it is a practical approach which works every single time.

If you want a good financial management book to achieve the total financial health then this book is for you.

#13. The Behavior Gap by Carl Richards

The Behavior Gap by Carl Richards: Carl Richards is a renowned author and in this book, he focusses on the Behavior. Behavior plays an important role to achieve financial success and in this book, you will learn how your decisions could be sabotaging your financial success.

This book is a perfect combination of practical advice and emotional encouragement. In the book, the author provided simple yet effective methods to take charge of your personal finances. This book will help you to achieve financial stability in an unstable world.