catalogue
Characteristics of financial management
Evolution of financial management
The goal of financial management
Content of financial management
Basic theory of financial management
Capital asset pricing model
Ten basic principles of financial management
The position of financial management in enterprises
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Editing the characteristics of financial management in this paragraph The complexity of enterprise production and business activities determines that enterprise management must include many aspects, such as production management, technical management, labor and personnel management, equipment management, sales management, financial management, etc. All work is interrelated and closely coordinated, and at the same time there is a scientific division of labor, each with its own characteristics. The characteristics of financial management are as follows. (1) Financial management is a comprehensive management work. In the process of division of labor and decentralization, enterprise management has formed a series of specialized management, some focusing on the management of use value, some focusing on the management of value, some focusing on the management of labor factors, and some focusing on the management of information. With the development of social economy, financial management is required to mainly use the form of value to manage business activities. Through the form of value, all the material conditions, operating process and operating results of the enterprise are reasonably planned and controlled, so as to achieve the purpose of continuously improving efficiency and increasing enterprise wealth. Therefore, financial management is both an independent aspect of enterprise management and a comprehensive management work. (B) financial management and all aspects of enterprises have extensive contacts. In an enterprise, all revenue and expenditure activities involving funds are related to financial management. In fact, it is rare that all departments within an enterprise are not exposed to funds. Therefore, the tentacles of financial management often extend to every corner of enterprise management. Each department will contact the financial department through the use of funds. In terms of rational use of funds and saving capital expenditure, all departments should also accept the guidance of the financial department and be bound by the financial system to ensure the improvement of the economic benefits of enterprises. (3) Financial management can quickly reflect the production and operation of enterprises. In enterprise management, whether the decision is proper, whether the operation is reasonable, whether the technology is advanced and whether the production and sales are smooth can be quickly reflected in the financial indicators of the enterprise. For example, if the products produced by enterprises are marketable and reliable in quality, they can promote the development of production, realize the prosperity of production and marketing, accelerate the capital turnover and enhance profitability, which can be quickly reflected through various financial indicators. This also shows that financial management is independent and restricted by the management of the whole enterprise. The financial department should, through its own work, inform the business leaders of the changes in financial indicators in a timely manner, so that the work of various departments can be brought into the track of improving economic efficiency and strive to achieve the goal of financial management. Edit the evolution of financial management in this paragraph. The embryonic period of financial management. Enterprise financial management originated at the end of 15 and the beginning of 16. At that time, the western society was in the embryonic period of capitalism, and many commercial cities along the Mediterranean coast appeared commercial organizations with public shares. Shareholders of stocks are businessmen, princes, ministers and citizens. The development of commodity joint-stock economy objectively requires enterprises to reasonably predict the demand for funds and effectively raise funds. But at this time, the demand for funds by enterprises is not great, and the financing channels and methods are relatively simple. The financing activities of enterprises are only attached to business management, and there is no independent financial management major. This situation lasted until the end of 19 and the beginning of the 20th century. /kloc-from the end of 0/9 to the beginning of the 20th century, the success of the industrial revolution promoted the continuous expansion of enterprise scale, the remarkable improvement of production technology and the further development of industrial and commercial activities, and joint-stock companies developed rapidly and gradually became the dominant enterprise organization form. The development of joint-stock companies not only caused the expansion of capital demand, but also greatly changed the channels and methods of financing, and the financing activities of enterprises were further strengthened. How to raise capital to expand business has become the focus of most enterprises. As a result, many companies have set up a new management department-financial management department, and financial management has begun to be separated from enterprise management and become an independent management profession. At that time, the function of enterprise financial management was mainly to predict the amount of funds needed by enterprises and raise the funds needed by enterprises, and financing was the fundamental task of theoretical research on enterprise financial management at that time. So this period is called financing period or financing period. During the period of legal financial management, the worldwide economic crisis broke out in 1929 and the overall depression of the western economy in the 1930s, which led to the bankruptcy of many enterprises and serious losses for investors. In order to protect the interests of investors, western governments have strengthened the legal management of the securities market. For example, the United States promulgated the Federal Securities Law and the Securities Exchange Law of 1933 and 1934, which made strict legal provisions on the company's securities financing. At this time, the outstanding problems faced by financial management are the financial market system and related laws and regulations. Financial management first studies and explains all kinds of laws and regulations, guides enterprises to form and merge companies according to the requirements stipulated by law, and issues securities to raise capital. Therefore, western financiers call this period "law-abiding financial management period" or "descriptive legal period". The research focus of this period is laws and regulations and internal control of enterprises. The main financial research achievements are as follows: "Enterprise Finance" written by W.H.Lough of the United States puts forward for the first time that enterprise finance should not only raise capital, but also effectively manage capital turnover. British T.G.Rose's internal financial theory especially emphasizes the importance of internal financial management, and holds that the effective use of capital is the focus of financial research. After the 1930s, the focus of financial management began to shift from expansionary external financing to defensive internal capital control, and the determination of various financial objectives and budgets, debt restructuring, asset evaluation, and maintaining solvency began to become important contents of financial management research in this period. In the asset financing period after 1950s, faced with fierce market competition and the emergence of buyer's market trend, financiers generally realized that simply expanding financing scale and increasing product output could not meet the development needs of the new situation. The main task of the financial manager should be to solve the problem of capital utilization efficiency, and the financial decision within the company has risen to the most important issue. Western financiers call this period "internal decision-making period". During this period, the time value of funds has aroused the general concern of financial managers, and the capital budgeting method with fixed assets investment decision as the research object has become increasingly mature. The focus of financial management has shifted from paying attention to external financing to paying attention to the rational allocation of funds within the company, which has made a qualitative leap in the company's financial management. Because asset management has become the top priority of financial management in this period, it is called asset financial management period. At the end of 1950s, paying attention to and studying the overall value of a company was another remarkable development of financial management theory. In practice, investors and creditors usually determine the value of the company's stocks and bonds according to a series of factors such as the company's profitability, capital structure, dividend policy and operational risk. Therefore, the research on capital structure and dividend policy is highly valued. The main financial research achievements in this period are as follows: 195 1 year, Joel Dean, an American financier, published the earliest theoretical works on investment finance, which played a decisive role in the rapid development of financial management from financing financial management to asset financial management; 1952, H.M.Markowitz published the paper "Portfolio Selection", and thought that under some reasonable assumptions, the variance of investment return rate is an effective method to measure investment risk. From this basic point of view, from 65438 to 0959, markowitz published the monograph "Portfolio Selection" to study the portfolio problem among various assets from the measurement of returns and risks. Markowitz is also recognized as the founder of modern portfolio theory school; 1958, Franco Modigliani and Merto H. Miller published the Theory of Capital Cost, Corporate Finance and Investment in American Economic Review, and put forward the famous MM theory. Modig Lenny and Miller won the Nobel Prize in Economics in 1985 and 1990 respectively for their outstanding achievements in studying the theory of capital structure. 1964, William Sharpe and lintner put forward the famous CAPM based on Markowitz theory. This paper systematically expounds the relationship between risk and return in asset portfolio, distinguishes systematic risk from non-systematic risk, and clearly puts forward the viewpoint that non-systematic risk can be reduced by diversifying investment. The capital asset pricing model revolutionized the modern portfolio theory, so Sharp and markowitz won the 22nd Nobel Prize in Economics. In a word, during this period, a "new financial theory" was formed, which mainly studied financial decision-making. Its essence is to attach importance to the pre-control of financial management, emphasize the close relationship between the company and its economic environment, and take asset management decision as the center, which has pushed the financial management theory forward a big step. During the period of investment and financial management, since the end of World War II, science and technology have developed rapidly, the speed of product upgrading has accelerated, the international market has expanded rapidly, multinational companies have increased, the financial market has flourished, the market environment has become more complicated, and investment risks have increased day by day. Enterprises must pay more attention to investment benefits and avoid investment risks, which puts forward higher requirements for existing financial management. After the mid-1960s, the focus of financial management shifted to investment, so it was called the investment and financial management period. As mentioned above, portfolio theory and capital asset pricing model reveal the relationship between asset risk and its expected rate of return, which is welcomed by the investment community. It not only bases the securities pricing on the interaction between risk and return, but also greatly changes the company's asset selection strategy and investment strategy, and is widely used in the company's capital budget decision. As a result, two independent fields in finance-investment and corporate financial management are combined, and the theory of corporate financial management has entered a new era of investment financial management. The above-mentioned financial research achievements in the asset management period are also the main financial achievements in the primary stage of investment and financial management. Since 1970s, the innovation of financial instruments has strengthened the connection between companies and financial markets. Warrants and financial futures are widely used in enterprise financing and foreign investment activities, which promotes the development and perfection of financial management theory. In the mid-1970s, Blake and others established the option pricing model (OPM). Stephen ross put forward the arbitrage pricing theory. During this period, modern management science makes the investment management theory mature day by day, which is mainly manifested in: establishing reasonable investment decision-making procedures; A perfect investment decision-making index system has been formed; A set of scientific decision-making methods for venture capital is established. It is generally believed that the 1970s was the period when western financial management theory came to maturity. Fiberhome Hunting Company believes that financial management has further developed into a management activity integrating financial forecasting, financial decision-making, financial planning, financial control and financial analysis, with fund-raising management, investment management, working capital management and profit distribution management as the main contents, occupying a core position in enterprise management. 1972, Fama and Miller published the book Financial Management, which is a representative work of western financial management theory and marks the maturity of western financial management theory. The new period of deepening development of financial management At the end of 1970s, the financial management of enterprises entered a new period of deepening development, developing in the direction of internationalization, accuracy, computerization and networking. In the late 1970s and early 1980s, the western world generally suffered from long-term inflation. Large-scale sustained inflation leads to the rapid increase of capital occupation, the increase of financing cost with interest rate, the depreciation of securities, the more difficult for enterprises to raise funds, the inflated profits of the company and the serious loss of funds. Serious inflation has brought a series of unprecedented problems to financial management, so the task of financial management in this period is mainly to deal with inflation. The financial management of inflation once became a hot issue. Since the middle and late 1980s, import and export trade financing, foreign exchange risk management, international transfer price issues, international investment analysis, and financial performance evaluation of multinational companies have become hot spots in financial management research, and a new branch of finance-international financial management has emerged. International financial management has become a branch of modern finance. In the middle and late 1980s, developing countries in Latin America, Africa and Southeast Asia fell into a heavy debt crisis. The political situation in the former Soviet Union and Eastern European countries was turbulent and their economies were on the verge of collapse. The United States has a trade deficit and a fiscal deficit, and trade protectionism once prevailed. This series of events led to the turmoil in the international financial market, which made the investment and financing environment faced by enterprises very uncertain. Therefore, enterprises pay more and more attention to the evaluation and avoidance of financial risks in financial decision-making. Therefore, quantitative methods such as utility theory, linear programming, game theory, probability distribution and simulation technology are increasingly applied to financial management. Attach great importance to financial risks and the quantification of financial forecasts and decisions. With the application of advanced methods and means such as mathematical methods, applied statistics, optimization theory and electronic computer in financial management, the company's financial management theory has undergone a "revolution". Financial analysis is developing rapidly in a precise direction. Financial management information system was born in 1980s. Since the mid-1990s, computer technology, electronic communication technology and network technology have developed rapidly. A great revolution in financial management-online financial management has quietly arrived. Western finance is mainly composed of three areas, namely, corporate finance, investment and macro finance. Among them, corporate finance is often translated as "corporate finance" or "enterprise financial management" in China, and has been included in RCA examination since 2000. Edit the financial management objectives related to the financial management objectives in this paragraph-the basic viewpoints of various financial management objectives and their advantages and disadvantages evaluation 1. The basic view of profit maximization: profit represents the newly created wealth of the enterprise. The more profits, the more wealth the enterprise increases, and the closer it is to the enterprise's goal. Disadvantages: First, the time value factor of profit acquisition is not considered. For example, this year's 654.38+0 million, and next year's 654.38+0 million, it is obviously difficult to make a correct judgment at a time. Secondly, the relationship between the profits obtained and the invested capital is not considered. Compared with the profit of 6,543,800,000 yuan earned by 50 million invested capital, if we only look at the profit, their contribution to the enterprise is the same, but if we consider the investment, it is obviously different. Third, we didn't consider the relationship between the profits we made and the risks we took. For example, if we also invest 6.5438+0 million yuan, then we will make a profit of 6.5438+0 million yuan this year. One enterprise will convert all of them into cash, and the other enterprise will all be accounts receivable, so there may be bad debt losses that cannot be recovered. The risks of the two are obviously different. 2. The basic view of maximizing earnings per share: consider the profit of the enterprise and the capital invested by shareholders, and summarize the financial management objectives of the enterprise with earnings per share, thus avoiding one of the shortcomings of the goal of "maximizing profits". Disadvantages: this goal still does not consider the time value factor of earnings per share. In addition, the advantages of risk are not considered: the defects of profit and capital investment obtained in the "profit maximization goal" are solved. 3. The basic view of maximizing the wealth (value) of an enterprise is that increasing the wealth of shareholders is the target advantage of financial management. This goal solves all three defects of the "profit maximization goal": it is difficult to measure. 4. The basic view of maximizing related interests is that not only the interests of creditors, shareholders and other related parties should be considered, but also the employees and employees of the enterprise. Edit the contents of financial management in this paragraph 1, fund-raising management 2, investment management 3, working capital management 4, profit distribution management Edit the basic theory of financial management in this paragraph (1) Capital Structure theory is a theory to study the relationship between the company's financing methods and structure and the company's market value. The conclusion of modigliani and Miller's research is that in Perfect and Efficient Finance, Miller won the 1990 Nobel Prize in Economics and modigliani won the 1985 Nobel Prize in Economics. (2) Modern modern portfolio theory and CAPM modern modern portfolio theory are about the best portfolio theory. This theory was put forward by Harry markowitz in 1952. His research conclusion is that as long as the return changes between different assets are not perfectly positive, the investment risk can be reduced through asset portfolio. Markowitz thus won the 1990 Nobel Prize in Economics. Capital asset pricing model is a theory to study the relationship between risk and return. Sharp et al. concluded that the risk return rate of a single asset depends on the risk-free return rate. The risk return rate of the market portfolio and the risk of the risky asset. Sharp thus won the 1990 Nobel Prize in Economics. (3) Option pricing model Option pricing theory is a theory about options (stock options, foreign exchange options, stock index options, convertible bonds, convertible preferred stocks, determining the value or theoretical price of warrants, etc. Scholes put forward the option pricing model in 1973, also known as B-S model. Since 1990s, option trading has become the main theme in the world financial field. Scholes and Morton 1997 won the Nobel Prize in Economics. (4) Efficient Market Hypothesis (EMH) Efficient Market Hypothesis is a theory that studies the degree to which securities prices reflect the information of the capital market. If the capital market fully reflects all the relevant information of securities prices, it is said that the capital market is effective. In this market, it is impossible to obtain economic benefits from securities trading. Fama is the main contributor to this theory. (5) The agency theory is to study the agency cost under different financing methods and different capital structures, and how to reduce the agency cost and improve the company value. Zhan Sen and McCullough are the main contributors to this theory. (6) Information asymmetry theory Information asymmetry theory means that people inside and outside the company have different understandings of the actual operating conditions of the company, that is, there is information asymmetry among the relevant personnel of the company, which will lead to different judgments on the company's value. Modern modern portfolio theory is a theory about optimal portfolio. Markowitz put forward this theory in 1952, and his research conclusion is that as long as the return changes between different assets are not perfectly positive, we can reduce the investment risk through asset portfolio. Markowitz thus won the 1990 Nobel Prize in Economics. Capital asset pricing model is a theory to study the relationship between risk and return. Sharp et al. concluded that the risk return rate of a single asset depends on the risk-free return rate. The risk return rate of the market portfolio and the risk of the risky asset. Sharp thus won the 1990 Nobel Prize in Economics. (3) Option pricing model Option pricing theory is a theory about options (stock options, foreign exchange options, stock index options, convertible bonds, convertible preferred stocks, determining the value or theoretical price of warrants, etc. Scholes put forward the option pricing model in 1973, also known as B-S model. Since 1990s, option trading has become the main theme in the world financial field. Scholes and Morton 1997 won the Nobel Prize in Economics. (4) Efficient Market Hypothesis (EMH) Efficient Market Hypothesis is a theory that studies the degree to which securities prices reflect the information of the capital market. If the capital market fully reflects all the relevant information of securities prices, it is said that the capital market is effective. In this market, it is impossible to obtain economic benefits from securities trading. Fama is the main contributor to this theory. (5) The agency theory is to study the agency cost under different financing methods and different capital structures, and how to reduce the agency cost and improve the company value. Zhan Sen and McCullough are the main contributors to this theory. (6) Information asymmetry theory Information asymmetry theory means that people inside and outside the company have different understandings of the actual operating conditions of the company, that is, there is information asymmetry among the relevant personnel of the company, which will lead to different judgments on the company's value. Edit the ten basic principles of financial management in this paragraph. Principle 1: Balance between risks and benefits-compensation for additional risks requires additional benefits. Principle 2: Time value of money-one yuan today is more valuable than one yuan in the future. Principle 3: Value measurement should consider cash instead of profit. Principle 4: Incremental cash flow-only increments are relevant. Principle 5: There are no projects with particularly high profits in the competitive market.
Financial management module
[1] Principle 6: Effective capital market-the market is sensitive and the price is reasonable. Principle 7: Agency problem-the interests of managers and owners are inconsistent. Principle 8: Taxation affects business decisions. Principle 9: Risks can be divided into different categories-some can be eliminated through decentralization, while others cannot. Principle 10: Moral behavior is to do the right thing. There are moral problems everywhere in the financial industry. The location of this section of financial management is 1. Financial management is based on the objective financial activities and financial relations in the process of enterprise reproduction, and it is an economic management work for enterprises to organize financial activities and deal with financial relations with all aspects. 2. Through the management of capital movement and value form, it permeates all management fields such as enterprise production and operation like blood. This paragraph edits the major of financial management (taking the undergraduate major of financial management in henan university of economics and law Institute of Accounting as an example). Training objectives (I) Overall training objectives. This major trains high-quality applied senior professionals who meet the needs of social and economic development in the 2 1 century, develop morally, intellectually and physically, and have the ability of innovation, practice and self-development. After graduation, I mainly engaged in financial management and capital operation in enterprises, institutions, governments, securities companies, investment banks and consulting companies. , you can also engage in related teaching and research work in teaching and research units. (2) Training standard 1. Ideological and political quality: love the socialist motherland, support the leadership of the production party of China, master the basic principles of Marxism–Leninism, Mao Zedong Thought, Deng Xiaoping Theory and Theory of Three Represents, and establish a scientific world outlook and methodology; Have the ambition and sense of responsibility to strive for the prosperity of the country and the prosperity of the nation; Have the quality of dedication, hard work, dedication, law-abiding, unity and cooperation; Have good ideological and moral character, social morality and professional ethics. 2. Professional skills: have the basic theories and knowledge of accounting, auditing, finance and business administration, and master the basic skills of financial accounting and management; Ability to analyze and solve financial and related problems; Have certain scientific research and practical work ability. 3. Cultural quality: solid knowledge of economic mathematics, foreign languages and computers and strong application ability; Have certain basic theoretical knowledge of humanities and social sciences and natural sciences; Have a wide range of knowledge and the basic ability to develop to the depth and breadth of professional knowledge. 4. Physical and mental quality: have a certain basic knowledge of sports and military affairs, master the basic skills of scientific physical exercise, develop good physical exercise habits and hygiene habits, receive necessary military training, meet the national sports and military training standards for college students, and have a healthy body; Have good psychological quality and aesthetic education. Training methods (1) The training method is the combination of theoretical teaching and practical teaching (including cognitive practice, professional investigation, professional simulation practice, graduation practice, etc.). ), at the same time, actively explore the second classroom, and achieve the training goal by reading recommended bibliography, completing reading notes, attending academic lectures, publishing academic papers and other activities. (2) Teaching methods adhere to the combination of teachers' teaching and students' self-study, and the classroom focuses on key and difficult contents. In addition to traditional teaching methods, we actively explore various teaching methods such as case teaching method, discussion method, scientific research teaching method, heuristic teaching method and practical teaching method. (3) Teaching means: implement multimedia teaching means, make full use of network-assisted teaching platform, organize live teaching, and improve teaching quality. Iii. academic system, minimum graduation credits and degree granting (1) standard academic system: four years. Flexible study period: three to seven years. (2) Minimum graduation credits Minimum graduation credits: 163 credits. Among them, compulsory course11credits, elective course 27 credits, and concentrated practice teaching 25 credits. (3) If the conferment of a degree meets the conditions for conferring a bachelor's degree, a bachelor's degree in management shall be conferred. Four. Main subjects and courses (1) main subjects management, economics, finance and law (2) main courses primary accounting, intermediate financial accounting, advanced accounting, cost management accounting, general theory of financial management, advanced financial management, auditing, accounting computerization, management, marketing, finance, western economics, economic law, tax law, statistics, management information system, etc.