The role of the financial management in business development in Latvia

Abstract

In recent years the world economy has undergone major changes and the companies must be able to adapt to the new circumstances. The research shows that during so called “fat years” in Latvia many companies did not pay attention to the in-depth financial analysis and to the significance of it. But the economic conditions have forced to do so and currently more and more Latvian companies tend to focus on financial analysis and planning, as well as control. In Latvia the world experience in the field of financial management is learned approximately only in the last twenty years, and that is why this knowledge is not widespread.