Financial instruments provide new ways for enterprises to solve financial management problems and are the main means to increase financial returns and avoid financial risks. What I want to discuss below is.

1. Financing behavior

Enterprise financing, of which bonds and common stocks are the main types, adopt innovative terms of equity instruments through the innovation of bond contracts. , innovative financial instruments such as debt-to-equity conversion, etc., have solved the problem of corporate capital structure to a certain extent. The use of innovative financial financing enables enterprises to significantly improve their financing capabilities and flexibly adjust their capital structure, which is conducive to the management of the enterprise's capital chain.

2. Investment Behavior

In terms of financial investment, companies can use financial innovation to design different investment portfolios and cooperate with financial derivatives to amplify returns or risk aversion. Among short-term investment instruments with strong liquidity and low risk, repurchase agreements are a good financial innovation. Companies can conduct daily rolling overnight repurchase operations to maximize the utilization of funds. In the field of physical investment, companies can use derivatives such as futures or options to achieve hedging, reduce inventory risks, and improve capital utilization efficiency. For project investments in this field, companies can also use derivatives to reduce the uncertainty of long-term investments and deferral decisions.

Three Risk Management Behaviors

Modern enterprises not only have to face market risks, but they are also exposed to credit risks. With the continuous development and improvement of China's financial market environment, credit risks have become Market risks are becoming more complex and increasingly international, playing an increasingly important role in the use of innovative financial instruments to manage credit risks and market risks. For these risks of market price fluctuations, enterprises use foreign exchange futures, mutual exchanges, commodity swaps and commodity futures, and forward exchange rate agreements to hedge foreign exchange risks and market prices to reduce cash flow fluctuations for the purpose of hedging. Regarding credit risk, enterprises can adopt new credit risk management tools and methods, such as credit swaps, to transfer part of the insurance of accounts receivable and credit risks. When risk events occur, insurance compensation will be used to make up for the losses.

Use financial tools to innovate and optimize corporate financial management

Optimize corporate financing management

Various ways and channels of corporate financing are very wide and diverse. Diversity, financing in different channels has different risks and costs. With the continuous innovation of financial instruments and the development of international finance, the financing forms of enterprises are becoming more and more diverse. Enterprises can use innovation in financial instruments to manage their financing. First, establish a financial consortium for financing. By developing long-term larger-scale enterprises and accelerating capital accumulation to increase bank funds in order to earn interest, this not only reduces the company's profits, but also affects the efficiency of capital turnover. Large enterprises in the United States, Japan and other countries have established corresponding corporate financial institutions, formed consortiums, and established banks to achieve the purpose of raising funds within a specific range. This self-rolling financing investment method improves the use of funds by enterprises. Efficiency leads to high profit margins. Second, use stock option financing. A fixed-number stock option refers to the purchase of shares for a specified price. These bonds have certain characteristics of the equity and liability industries, and are intended to introduce a wider portfolio of investors and financial personnel to expand corporate income, so as to reduce its cost of capital. Stock options can also bring additional funds. , the strike price is often 10-30% higher than the bond issue date price in the stock market.

2. Optimize the financial risk management of enterprises

First of all, we must master and be familiar with financial instruments, focusing on financial innovation to transform economic risks through financial instruments. General types of bonds, stocks, bills and other financial instruments are widely financed in the financial market. According to a survey by Lucian in mid-2010, among the financial innovation tools for enterprises, the most commonly used to deal with foreign exchange risks is For forward and foreign exchange contracts, more risks related to interest rates are interest rate exchanges, price risks related to commodities are commodity options and commodity futures, and equity risks are mainly related to corresponding OTC options. Therefore, the exact relationship between risk management and financial instruments is innovative financial products. With the emergence of various derivative financial instruments and the development of financial futures markets, foreign exchange forward contracts, interest rate and currency swaps, options, futures, There are countless index transactions, so corporate financial managers should master and understand these innovative financial products to meet the needs of the business.

Secondly, innovation within the scope of the use of appropriate financial instruments. Every innovative financial tool brings benefits to enterprises but is also accompanied by risks, including financial risks. If suddenly many companies engage in risky trading business beyond the scope of self-control, and the complexity of financial innovation exceeds its ability to handle, existing problems accumulate over time in the company's financial product transactions, and it has to do high-risk transactions. , eventually leading to bankruptcy. Therefore, enterprises based on their carrying capacity should apply financial instrument innovation within an appropriate range and weigh the benefits and risks of one-stop innovative financial instruments to optimize corporate financial management.

Thirdly, enterprises should strengthen liquidity management and pay attention to the internal transformation of fund management.

Direct internal fund transfers through dividends, royalties, original investments, loans for imported and exported goods, and financial intermediaries to manage repatriations. The rational allocation of funds enables enterprises to effectively and quickly achieve optimal use of all funds in the control system and global funds and reserves.

Finally, when enterprises use financial instruments to innovate, they should adhere to the policy of mutual penetration of industrial capital and financial capital, and at the same time support the development of banks and enterprises. Business enterprises participating in market competition are inseparable from the support of bank credit and funds. The development and growth of enterprises cannot be separated from the support of major banks. The combination of this industry and finance can effectively prevent financial risks and business risks, and strengthen The ability of enterprises to participate in market competition.