Financial Management Essay

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Financial Management Dissertation Part 1

Title:

Challenges and Innovative Thinking in Financial Management under Big Data

Abstract :

This paper firstly analyzes the impact of big data on the enterprise's financial management, and then discusses the opportunities and challenges brought by big data to the The paper first analyzes the impact of big data on enterprise financial management, then discusses the opportunities and challenges brought by big data to enterprise financial management, and finally puts forward the idea of enterprise application of big data for financial management innovation.

Keywords :

Big data financial management; accounting; financial system

As the latest science and technology of revolutionary significance, big data is affecting our lives from all angles, including the field of enterprise finance. Financial management is the core content of enterprise management, which has a profound impact on enterprise business planning, and whether it can perform excellent financial management is related to the survival and development of enterprises. How to actively respond to the environmental changes and development trends of enterprise financial management in the era of big data, to dare to innovate to occupy the first opportunity of the times, is currently China's enterprises must seriously address the issue.

First, the impact of big data on enterprise financial management

The traditional enterprise financial management based on the data is very limited, which makes the financial data analysis also has obvious limitations, resulting in the lack of financial management of a comprehensive and accurate data base. Built on the data is not completely reliable basis of enterprise financial management as a tube in the leopard, it is easy to generalize, and the objectivity of the market there is a large gap, it is very easy to error in judgment, and ultimately lead to the loss of business interests.

And big data technology can be presented for the enterprise comprehensive, real-time, accurate market data and systematic, multi-level, personalized data analysis, so that the enterprise has a more reliable financial analysis tools, more advanced financial management and more effective basis for financial decision-making. Specifically, the impact of big data on enterprise financial management mainly includes the following five aspects:

1, changes in the way of enterprise financial processing

First, big data has changed the scope of financial processing. In the traditional concept of financial management, enterprises only deal with financial data directly related to the enterprise. But in the big data environment, all the data related to the enterprise are collected and processed within the scope of information, such as industry information, financial market fluctuations, upstream and downstream enterprise financial status changes and other information can not escape the attention of big data and data mining.

Second, compared with traditional financial management, big data focuses more on the value of non-financial information. Big data technology can analyze the data that is completely unrelated to finance on the surface and extract, statistics, generalization, from which to find out the economic laws related to financial management, business characteristics, potential problems, financial management for the enterprise to provide a solid digital basis, and more importantly, for the enterprise to point out the direction of improving the level of financial management, so that the enterprise can put the limited resources on the most critical financial management nodes, to maximize the use of financial management resources.

2, changes in accounting methods

Most of the traditional financial management using "man-machine" combination of semi-manual way, while the big data environment of financial management to the full automation direction. In the processing of big data platform, enterprise finance and external integration for unified accounting. The basic accounting work is less and less, the accounting process is more and more intelligent, de-artificial, high-speed and standardized.

Huawei, for example, Ren Zhengfei to change Huawei's sloppy financial management of the risks brought about by the IBM finance team specifically invited to Huawei tailored to the big data as the support of the integrated financial system (IFS), accounting concepts with big data to reorganize the accounting process. The system has even become an important factor affecting Huawei's current organizational structure, as one of Huawei's financial advisers said: "Without the supporting IFS, Huawei is unlikely to resolve to decentralize the power".

3, changes in the knowledge structure of the enterprise financial management personnel requirements

At present, many enterprises in China have realized the significance of big data on the financial management of change, but due to the lack of capacity of the traditional accounting personnel in the use of big data technology, the concept of slow updating speed and other reasons, in the specific use of big data and big data analysis in the presence of certain difficulties. In the era of big data, corporate finance staff should not only have the relevant knowledge and skills in finance, but also master the computer, statistics and other aspects of knowledge, so that big data can really serve the enterprise.

4, changes in the financial management environment

The emergence of big data has changed people's lives, the way they work, but also changed people's mindsets, in the economic field is also a profound impact on people. Numerous financial behaviors of ordinary consumers, enterprises, and economic groups have become the content of big data collection, and numerous enterprises apply big data to determine the impact of business, deepen the understanding of services, and accelerate the growth of corporate profits. In this changing environment, it is impossible for companies to achieve a high level of financial management without the support of big data.

Second, big data to the enterprise financial management opportunities and challenges

1, big data to the enterprise financial management opportunities

First of all, big data using huge data collection technology to collect massive amounts of data and analyze it, so that the enterprise financial personnel from the vast ocean of data to get the potential, with the key to the financial value of the information, for the enterprise to formulate a new financial management system.

Firstly, big data uses huge data collection technology to collect huge amounts of data and analyze it, so that enterprise financial personnel can get potential information with key financial value from the vast amount of data.

Secondly, through the screening and combing of internal and external information, we can help companies find negative factors that affect their development and healthy operation. For example, after the big data analysis of enterprise investment, benefit distribution, operation management and other financial related activities, not only for the enterprise to point out the possible risk factors, but also for the enterprise risk management to point out the direction. Helps companies to recognize the existence of problems and potential risks, prepare in advance to avoid financial risks, develop targeted pre-, mid- and post-crash control programs, effectively reduce the probability of risk, so that financial management is more stable and reliable for the enterprise services.

Again, big data can provide intelligent, unified form, internal and external integration of financial analysis tools for different enterprises. On the one hand, big data analysis can effectively reduce the level of enterprise financial management, reduce the workload of financial management; on the other hand, big data through a comprehensive analysis of the results, to provide the financial sector and other departments are unable to provide the basis for the enterprise strategy, so that the status of the financial sector in the enterprise has been substantially improved.

Finally, big data will promote the development of internal personnel structure in a more scientific direction. The application of big data to deal with financial management issues, not only to collect financial data, but also to collect the surface seems to be "completely unrelated" to the financial data.

The finance department and other departments *** with access, selection and analysis of data, which requires the finance department and other departments to establish a more direct and more coordinated relationship, the finance department is concerned about the operation of the enterprise a wider range of work more comprehensive.

These changes either prompted the financial sector to obtain higher management authority, such as Changhong's "financial **** enjoy the system" so that the financial sector of the enterprise to the high-end transformation of the enterprise operation of the central hub of the department; either prompted the enterprise to re-planning of the financial framework, for example, in order to innovate Haier Group, the "human-single-integration of data", the "human-single-integration of data". Haier Group, for example, in order to innovate a "single budget management model", improve the responsibility and rights of the front-line staff on the financialization of the plan, completely changing the management relationship between business leaders and ordinary employees. Either way, it drives the enterprise personnel structure to a more reasonable direction, bringing higher profits for the enterprise.

2, big data to the enterprise financial management challenges

First of all, how to scientifically and effectively apply the challenge of big data. Big data is as vast and varied as the sea, how to quickly extract, mine and analyze data for the enterprise financial sector is a new challenge.

From a hardware perspective, most companies do not have enough bandwidth, nor do they have the data storage and processing conditions required for big data. From the software point of view, most companies do not have the ability to develop their own massive data processing, the establishment of mega data warehouse and deep data mining. From the perspective of financial personnel, many companies do not have the skills of financial managers to apply big data technology.

Secondly, enterprises will face the challenge of financial management model transformation. Under the big data environment, the enterprise financial management will be transformed to informationization, intelligent direction, changing the aftermath processing for the processing. The most important change is the transformation of the traditional management-based financial approach to the modern value-based financial management system, which is to transform the ordinary bookkeeping and management work mode into a work system that manages value and creates value. How to realize this change and really play the role of the new model is a new challenge for enterprises.

Finally, enterprises will face the challenge of finding and cultivating new financial management talents. The application of big data on the enterprise financial management personnel put forward new requirements, including how to protect business secrets, how to extract valuable data, how to combine the characteristics of the industry in which the enterprise is located and the development strategy of personalized data analysis, etc., are required at the same time with knowledge of financial management, statistical knowledge, computer knowledge and big data application skills of high-level talent. Currently, most of the enterprises in China lack the corresponding talent reserves, so how to find and cultivate new financial management talent is an important challenge for Chinese enterprises.

Third, the innovative thinking of enterprise financial management under big data

1, innovative enterprise financial management organizational structure

Enterprises usually carry out financial management according to function, the most common is to subdivide the financial department into accounting department, finance department, capital department and so on. To meet the changes of big data on financial management, enterprises should take the initiative to innovate the organizational structure of the financial department. First of all, enterprises should set up independent departments or personnel in the financial management organization to specifically manage financial data and non-financial data related to finance, data acquisition, data mining and analysis.

For those who do not have the ability to create a big data financial management system for the time being, they can purchase the right to use a third-party big data platform, but they still need a dedicated person to manage and analyze the data. Second, the creation of big data makes financial management and other departments of the enterprise more closely linked, business managers should be from a new height to view the role of financial management in the whole enterprise.

Reasonable reorganization according to the enterprise's own characteristics. Or learn from Changhong, to enhance the communication ability of the financial management department in the enterprise; or learn from Haier, through the system and the new financial system will be the financial management of the enterprise operation of every link in the formation of a flat financial management process. Either way, its ultimate goal is to mobilize the entire enterprise to participate in financial management.

2, the construction of big data financial management system

The effective information density of big data is low, want to extract effective information from the huge amount of data must rely on big data financial management system. The system collects, analyzes, sorts and evaluates all the big data related to enterprise finance through data prediction and data mining classification techniques, which not only provides enterprises with a full range of financial data, problems and potential dangers, but also evaluates the financial and operational status of upstream and downstream enterprises, predicts the future development trend of enterprises and even the industry, and provides the most reliable data for the formulation of enterprise finance and development strategies. The company's main goal is to provide the most reliable data for the development of corporate finance and development strategies.

Under the circumstances, enterprises can independently build big data financial management systems, and can also purchase the right to use third-party big data platforms, and simply download the client to build the enterprise's big database. For most enterprises, this approach is faster and less costly.

3, the construction of big data financial talent team

Whether relying on the enterprise's own ability to build big data financial analysis system, or to buy the right to use third-party big data platform, the financial management department can not be separated from the application of big data software and analysis of big data financial talent. These talents should not only be proficient in traditional accounting and financial management knowledge, but also be able to apply statistics, big data technology, and be familiar with the laws of business operation and the development status of the industry.

Only such talents can truly utilize the macro advantages of big data in financial management, and provide enterprises with high-value financial decision-making basis. In order to get such financial management talents, enterprises should strengthen the training of the original financial management personnel on the one hand, and comprehensively improve the comprehensive ability of financial personnel; on the other hand, they should actively introduce big data talents, and set up a financial management team with the ability to modernize the comprehensive processing and application of big data.

No matter which way, the ultimate goal is to fully utilize the advantages of big data, so that it can truly reflect the value of financial management in the enterprise. Big data has fundamentally changed the effectiveness of enterprise financial management. Comply with the trend, complete their own changes, is the era of enterprise financial management put forward the inevitable requirements, but also the general trend. To proactively meet this change will bring qualitative changes for enterprise financial management, but also for the overall development of China's enterprises to bring a profound impact.

Financial Management Essay Part 2

Abstract:

Competition among enterprises worldwide is becoming increasingly fierce, in order to improve the core competitiveness of China's state-owned enterprises, an effective way is to integrate resources through mergers and acquisitions. Realize the advantages of economies of scale. The financing problem is the key link that determines the success of M&A of state-owned enterprises. The article for China's state-owned enterprises mergers and acquisitions financing activities in the problems, put forward the corresponding recommendations.

Keywords:

state-owned enterprises, merger and acquisition financing

First, China's state-owned enterprises, merger and acquisition financing problems

1, capital market financing development is slow. In the practice of mergers and acquisitions in China's state-owned enterprises, most of the equity financing is through the issuance of new shares and additional allotment of shares and other ways to raise the required funds. The company usually uses the funds raised during the initial public offering as the M&A funds, or some enterprises with better performance continue to raise funds by way of share placement to prepare for the M&A. However, whether our enterprises have the qualification of stock issuance and the regulations of stock issuance are relatively strict, the amount of fund-raising generally can't be more than twice of its net assets in the year before the issuance, and the amount of fund-raising of the new shares issued by the listed company generally can't be more than the amount of its net assets in the year before the issuance. In addition, China's capital market is in the adjustment stage. Systemic risk and policy factors should not be ignored, which have limited the development of financing for state-owned enterprises. As a result, only a small part of the enterprises can utilize the above means for M&A financing.

2, loan financing is limited. Bank credit funds by the bank's short-term preference for credit tendency, low capitalization and planning business philosophy and other aspects of the limitations, only to a certain extent to solve the enterprise to maintain and expand the production of normal business needs, it is difficult to play a due role in the merger and acquisition of enterprises. Moreover, according to the relevant regulations, the financing through bank borrowing cannot be used in the secondary market for the acquisition of listed companies, and generally can only be used for the acquisition of unlisted companies. Acquisition, generally can only be used for the merger and acquisition of non-listed enterprises or can only be used for the acquisition of national shares, corporate shares. Moreover, banks often need to provide security for M&A loans or require the lending company to use certain assets as collateral to issue the loan. In addition, the interest rate of the loan is relatively high, making it difficult for enterprises to afford this loan, so the bank loan in the enterprise merger and acquisition financing play a role is not very big.

3, bond financing ratio is small. In our country generally only listed companies or key state-owned enterprises can issue corporate bonds. Factors affecting the general state-owned enterprises through the issuance of bonds for financing are, first, the issuance of bonds to go through the complexity of the approval, often leading to fund-raising and the need for time mismatch, due to the limitations of the indicators, the limited size of the decision of the issuer to choose the limitations and the limited number of fund-raising. Secondly, the strict conditions of bond issuance will be many state-owned enterprises rejected in the bond financing door. Third, bond financing is difficult to use for M&A payments. China's use of bond financing has clear provisions, enterprise bonds issued by the enterprise funds shall not be used for real estate trading, stock trading and futures trading and other risky investment unrelated to the production and operation of the enterprise. Equity mergers and acquisitions involve the purchase and sale of stocks, and thus this provision restricts the financing of corporate bonds issued for equity mergers and acquisitions. The use of bond financing in M&A is also very limited.

4, China's corporate M&A financing by laws and regulations. As financial institutions are not allowed to provide loans for stock transactions, and equity mergers and acquisitions also belong to the scope of stock transactions, thus restricting the bank for equity mergers and acquisitions to provide loans. Debt financing, there are also many restrictions, & lt; company law & gt; the provisions of the corporate system of enterprises cumulative total amount of bonds does not exceed the company's net assets of 40, the bond interest rate shall not exceed the national interest rate level, etc., & lt; enterprise bond regulations) stipulates that "the interest rate of enterprise bonds shall not be higher than the bank of the same period of time deposits of the residents' savings rate of 40%. 40%, these provisions have played a great role in restraining the issuance of bonds. Generally speaking, the risk of corporate bonds is greater than the risk of bank deposits, high risk without the expectation of high yield, corporate bonds have lost their attractiveness, coupled with the bond trading is not as active as stock trading, thus limiting the financing channels of state-owned enterprises.

5, the phenomenon of non-standardized operation is serious. Due to China's market economic system is not yet perfect, many enterprises mergers and acquisitions are manipulated by government agencies, not voluntary enterprises, but government behavior. Government behavior on the state-owned enterprises mergers and acquisitions of the interference phenomenon is relatively serious. Due to the government's intervention, the situation faced by different enterprises in calculating the amount of M&A financing needs will be very different, some enterprises can acquire the target enterprise at a lower price, the financing pressure is lighter, while some other enterprises are likely to have relatively heavy financing pressure. This hinders the fair development of the financing market on the one hand, and on the other hand, it also results in the lack of due enthusiasm and autonomy in M&A, which inhibits the intrinsic impulse of M&A financing. In addition, the application of administrative control and other non-market means, it is also difficult to ensure the external financial support of enterprise M&A financing. The government only focuses on the financial needs at the time of M&A, while the financial support and enterprise operation after M&A is often affected by the lack of funds for its normal operation and integration effect.

Second, the development of state-owned enterprises mergers and acquisitions financing recommendations

1, broaden the financing channels. Endogenous financing is the first choice of enterprise M&A financing, the use of internal funds for mergers and acquisitions, on the one hand, will not increase the financial burden of the enterprise, the financial risk is small, on the other hand, will not pass to the market unfavorable to the enterprise value of the influencing factors. In the state-owned enterprises mergers and acquisitions, should be as reasonable as possible from within the enterprise to raise funds for mergers and acquisitions, in addition to the enterprise's own funds, the use of enterprises in addition to cash other assets for the exchange of property rights or property rights to contribute to the enterprise, not only can reduce the cost of financing, reduce the risk of financing, but also can revitalize the stock of assets to achieve the exit of certain areas, recovery of debt, etc., is extremely beneficial to the enterprise.

Secondly, in order to ensure the control of the merger and acquisition of enterprises and to ensure the growth of earnings per share under the premise of stock exchange mergers and acquisitions. Not only can solve the problem of payment of funds, but also can reduce the risk of overestimation of the purchase price and the risk of merger and acquisition integration, to obtain the support of the management of the target enterprise and other aspects of the benefits of large-scale mergers and acquisitions, especially so. Currently. Most of the state-owned enterprises in need of expansion do not have the conditions for large-scale financing to financial institutions or public offerings, the use of stock exchange for mergers and acquisitions is not a good choice.

Again, state-owned enterprises can use borrowing and issuing securities (including bonds, stocks and convertible bonds) and other channels for financing. The choice of this financing channel should take into account the size, duration and cost of financing to determine the optimal capital structure of the enterprise. If the optimal capital structure requires the use of equity financing, then the issuance of shares is used. Otherwise, priority should be given to bank borrowing, and then consider the issuance of bonds.

2, the development and utilization of innovative financing tools. Compared with foreign countries. Widely used in international M&A financing junk bonds, warrants, convertible bonds, preferred shares, notes and other financing tools in China's M&A financing application is very little, some M&A financing tools such as leveraged buyout of bridge loans and other imperfections, but the absorption of foreign advanced financing tools should become a state-owned enterprises to carry out mergers and acquisitions of the wise choice.

(1) equity leasing. Equity leasing refers to all kinds of investment and financing subjects as a joint acquirer, and acquirer cooperation acquisition of enterprises, holding the target enterprise to transfer all or part of the equity. After the completion of the acquisition, the investment and financing body will hold the equity as the subject matter of the lease, through the setting of the lease term and income, and gradually transfer the equity to the acquirer to complete the merger and acquisition. For the acquirer, the equity lease can be simply summarized as a sale, a lease and a repurchase. Sale refers to the acquirer's inability to purchase the equity to sell to the financing institution in case of insufficient funds. At this time, the investment and financing institution actually assumes the function of financing for the acquirer to reduce the acquirer's acquisition capital pressure. The investment and financing institution, as a transitional shareholder, does not aim to control the equity in the long term, and therefore must enter into a lease and repurchase contract with the acquirer. During the lease period, the acquirer can have sufficient time to dispatch funds, and when the lease expires, then this part of the equity formally repurchased over, so as to complete the entire acquisition.

(2) note financing. Corporate mergers and acquisitions in the transaction through the note financing in our country is rarely applied. At present, the function of bills in China is only limited to payment and credit settlement tools, and its financing function has not been fully utilized.

Note issuance financing has greater flexibility than corporate bond issuance financing, and can always take different financing strategies and contingency measures according to changes in the market, capital supply and demand. At the same time, commercial paper financing can avoid the increase in opportunity cost of other equity financing methods. With the gradual relaxation of China's management of bills. The gradual expansion of the main participants in the bill market, as well as the establishment of the bill trading institutions, state-owned enterprises (especially large state-owned enterprises with good efficiency) can try to use the guarantee, sale and purchase of bills and mortgages to finance in order to meet the temporary funding needs of mergers and acquisitions activities.

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