Economic Development Poses New Challenges To Financial Management.

Entering the twenty-first Century, the world economy will enter the era of knowledge economy. With the extensive application of computer technology and information networking, the knowledge industry, which takes information and knowledge as the main body, will rise and develop rapidly, making the composition of assets and the structure of industry undergo profound changes. At the same time, with the rapid development of knowledge economy, the process of international economic integration will further accelerate.

A computer, a telephone line and a data machine can connect your company with the world, establish the best economic and trade environment on the Internet, and invest in stocks, foreign exchange and futures. Internet finance has attracted more global investors, and they are struggling to compete for the new round of international investment.

In order to catch up with the pace of the knowledge-based economy era, our government launched the "government online project" at the end of 1998. The project jointly launched by the General Administration of China Telecom and the Information Department of the relevant ministries and commissions is aimed at building our "e-government".

In order to enhance the importance of the whole society to the project, the relevant ministries and commissions designated 1999 as the "Internet year of government" in China's information industry.

In order to integrate China's economy into the international economic integration as soon as possible, China has had 13 years of arduous negotiations for joining the WTO.

To adapt to the international economic integration of trade and economic rules, it is very important that our enterprise system must be in line with international standards, so shareholding system or company system is the main form of organization for Chinese enterprises in the twenty-first Century.

In the face of such an economic environment such as shareholding system and economic internationalization, a new economic trend of knowledge economy, the financial management of enterprises must be comprehensively updated, adjusted and expanded from the financial management concept, financial goals and financial management contents.

First, the concept of financial management needs to be updated.

Paying attention to the concept of human development and management is the basic trend of modern management development and the objective requirement of knowledge economy.

Every financial activity of an enterprise is initiated, operated and managed by people. Its effectiveness depends mainly on human knowledge and wisdom as well as the level of human effort.

We should set up the concept of risk management.

Enterprise financial managers must establish a correct view of risk, be good at scientific prediction of uncertain factors brought about by changing environmental changes, and take precautionary measures to minimize possible losses.

We should establish the concept of information management.

We should start from collecting, analyzing and utilizing information comprehensively, accurately, quickly and effectively, capture various kinds of information conducive to the development of enterprises, make financial decisions, and carry out fund-raising and investment activities.

It is necessary to set up a financial management concept that attaches importance to knowledge and intelligence resources.

In the era of knowledge economy, knowledge has become the most important factor of production and the most important source of economic growth.

Human demand for resources has expanded from tangible assets such as land, water conservancy, petroleum and mineral resources to the demand for intangible assets such as knowledge and intelligence. The proportion and importance of intangible assets in the whole economic development are rapidly increasing.

Two, the goal of financial management is being reamended. At present, western academia still generally believes that the goal of financial management of modern enterprises is "maximizing shareholder wealth". However, this management objective is not compatible with the industrial economic era dominated by physical capital.

In the era of knowledge driven economy, intangible assets are becoming more and more important. Intellectual resources such as talents who create intangible assets are getting more and more attention. The goal of corporate financial management is not only to pursue shareholders' interests, but also to pursue other related stakeholders' interests and social interests.

According to reports, 29 states in the United States have revised their company law, requiring that the managers of a company should not only serve the shareholders of the company, but also serve the relevant stakeholders of the company.

The IBM company of the United States further refines its goal to the three principles of "the interests of employees, the interests of customers and the interests of shareholders".

Three, the content of financial management needs to be adjusted and expanded. In the era of industrial economy, the object of enterprise financial management is mainly the movement of material capital. Its contents mainly include the collection, input, recovery and distribution of physical capital, and the daily management of physical assets. The proportion of intangible capital in capital structure is restricted by law.

In the era of knowledge economy, knowledge capital will occupy a leading position in capital structure. Therefore, the contents of financial management of enterprises will also undergo great changes.

It is shown that: 1, intangible assets will become the focus of investment decisions.

According to statistics, the proportion of intangible assets of many enterprises in the United States has reached 50 to 60% in 1995, and the brand value of Hongta's first brand has reached 35 billion 300 million yuan.

This shows that the proportion of intangible assets in the total assets of enterprises and their role can not be ignored, and will become the main assets that determine the future earnings and market value of enterprises.

2, risk management will become an important part of enterprise financial management.

In the era of knowledge economy, because of the following factors, enterprises will face greater risks: (1) the speed of information dissemination, processing and feedback will be greatly accelerated; (2) the speed of knowledge accumulation and updating will further improve; (3) the life cycle of products will be shortened; (4) the unlimited expansion of "media space" and the emergence of "Internet banking" and "electronic money" will accelerate international capital flows and make capital decisions in an instant; (5) intangible assets will be invested fast and with great changes.

For example, financial markets in various countries have become a part of the global financial market. The interest rate level of any country will cause the reaction of international hot money.

A deep understanding of the market and the corresponding strategy are enough to subvert a country's economy, which is enough to make billions of assets disappear. Enterprises have to face the risk of bankruptcy at any time.

3, the owner of human capital will become a participant in the distribution of profits.

In the era of knowledge economy, human capital will become the most important resource that determines the development of enterprises and even the whole society and economy, and is the most important factor determining the distribution of social wealth.

In the process of primitive accumulation of capitalism, to reach several hundred million capital needs several generations' efforts. Bill, the economic giant of modern information industry, has spent 0 years in his brain. His capital total has reached US $51 billion, and its output value has surpassed the total output value of the three largest automobile companies in the United States.

This is undoubtedly a miracle created by human capital or intellectual capital.

At present, some western enterprises have implemented the profit sharing system of human capital, so as to enhance the effective operation of human capital by enterprises.

4, the financial index system reflecting the value of knowledge capital and its evaluation system need to be established and improved.

With the advent of the era of knowledge economy, many companies, especially high-tech enterprises like Intel and Microsoft, have a market value of 3~8 times higher than their book value after being listed.

The way and speed of capital appreciation are unprecedented and difficult to assess and predict with the existing financial indicators. The traditional financial indicators and evaluation systems are difficult to do anything about it.

If we maintain the inherent financial index system to invest in stocks, it is obvious that we should be surprised.

It is said that Soros, the US financial expert, has failed to predict that Internet stocks will go all the way up this year, and the US stock market is expected to fall. He left the stock market too early to lose nearly $1 billion of his fund.

At present, the western academia attaches great importance to the study of the value index of knowledge capital, and has achieved some results.

5, in the era of knowledge economy, investment channels are further diversified.

In the past few years, the brilliant achievements of the venture capital industry in the United States have made the world see that this unique financial mechanism is the main driving force for the sustained growth of the US economy and the rapid development of the information industry.

Their venture capitalists, angel investors, strategic investors and investment bankers are keen on venture capital in their respective identities and ways. They have made great progress in the development of hi-tech enterprises in the United States. Meanwhile, they can get huge capital returns for themselves.

At the end of the 20th century, the upsurge of venture capital is rising quietly. Many local governments have invested hundreds of millions of yuan to establish venture capital funds successively. However, there are few enterprises, companies, funds and individuals engaged in venture capital at present.

The Chinese spirit of advocating the golden mean is obviously lacking in spirit of adventure. Another reason may be that the money in the pockets of ordinary people is still less, and they dare not spend money in order to prevent hunger.

But anyway, to develop hi-tech or information industry, drawing on foreign experience and establishing a financial mechanism for venture capital is very necessary for both the whole country and enterprises.

the City of London Post