Ten Trends In The Development Of Financial Management

Entering the twenty-first Century, the tide of economic globalization is unstoppable. Knowledge economy is in the ascendant. Information technology, communication technology and e-commerce are developing vigorously.

These environmental changes will have a greater impact on the objectives, scope and contents of financial management.

This paper argues that the development trend of financial management caused by the above environmental changes is mainly manifested in the following ten aspects.

First, the goal of financial management will develop from "maximizing shareholder wealth" to "maximizing enterprise value".

An enterprise is a collection of multilateral contractual relationships such as shareholders, creditors, managers, employees and even governments.

If the goal of an enterprise is merely attributed to shareholders' goals, ignoring other stakeholders will inevitably lead to conflicts and conflicts, and ultimately damage the value of enterprises.

Obviously, only when the wealth of enterprises increases, will the interests of the contracting parties be satisfactorily satisfied.

Two, intangible assets will become the focus of investment decisions.

In the era of knowledge economy, the proportion of intangible assets based on knowledge, such as patents, know-how and trademarks, has increased rapidly, and even become the main assets of enterprises.

In developed countries, the contribution rate of science and technology to economic growth is as high as 60%~80%.

With the formation of the dominant position of knowledge capital in the capital structure of enterprises, intangible assets will inevitably become the most important investment target for enterprises.

Three, the owners of human capital will participate in the distribution of profits after taxes.

In the era of knowledge economy, human capital is the most important resource that determines the economic development of enterprises and even the whole society.

The owner of human capital will share the risk of the enterprise as the owner of material capital and share the profit after tax.

At present, some high and new technology enterprises are offering "bonus shares" to employees and implementing "stock option system" to managers. They are all forms of human capital owners' participation in the distribution of profits after taxes. This trend will become more and more obvious in the future.

Four, technological innovation will become the focus of financial management.

Enterprises' autonomous organization of scientific and technological innovation activities will become the focus of corporate financial management.

Introduce the achievements of scientific and technological innovation into the field of production, form feasible investment projects, and finally provide the investors with proven investment projects, and raise funds on the basis of their high return.

Therefore, support for technological innovation and utilization of its achievements will become the focus of financial management.

Five, people's value management will be further strengthened.

After technological innovation becomes the focus of financial management, it is bound to make human value management the center of financial management.

Scientific and technological innovation can bring competitive advantage and profit to the enterprise. With the ability of scientific and technological innovation, it can guarantee the future advantage and profit of the enterprise.

Taking human value management as the center of financial management, its important significance is not to add new contents to financial management, but to emphasize that all financial management work should be carried out around attracting talents, creating a good working environment and conditions so as to inspire talents to bring their creativity and enthusiasm into full play.

Six, financial means will be dominated by Internet.

Internet finance is an online financial activity based on the Internet intranet and e-commerce.

It is mainly reflected in: (1) process management of enterprise affairs can integrate the financial resources of the whole enterprise and improve the competitiveness of enterprises in an all-round way.

(2) all activities of enterprises can be reported in real time, which is convenient for enterprises to manage online and improve work efficiency.

For group enterprises with complex structure and multi industry affiliates, the coordination of Finance and business, internal departments and enterprises and society can optimize the allocation of resources and maximize the use and conservation of resources.

(4) under the environment of network finance, the widespread use of electronic documents and electronic money can save many intermediate links, promote the speed of process and raise the financial efficiency, thus speeding up the speed of capital turnover and reducing the enterprise's

。

Seven, risk management and safety management are equally important.

The "Internet banking" and "electronic money" generated by financial globalization and e-commerce will make international capital flow more efficient, capital decisions can be completed in an instant, and under the knowledge economy, the speed of information dissemination, processing, feedback and updating has been greatly accelerated. These new changes not only bring opportunities to enterprises, but also aggravate the financial risks of enterprises.

Therefore, we must take corresponding safety measures such as "firewall" to realize the synchronous development of financial development and effective monitoring.

Eight.

Will be more flexible and diverse.

The existence of financial crisis exacerbated the agency problem of most umbrella industry.

In order to improve the financial value of enterprises, enterprises will adopt more flexible and diverse incentive mechanisms, such as employee stock ownership, profit sharing, senior executive stock option and flexible welfare system, so as to reduce agency costs and increase employee recognition of enterprises.

At the same time, we should establish a multi-level and multi angle restraint mechanism, such as government regulations, bond terms, bond rating, accounting statement auditing, etc.

Incentive and restraint are relative and indispensable.

Nine.

System innovation.

In the evaluation of business performance of modern enterprises, in addition to adopting traditional financial analysis indicators, financial indicators such as economic value added, free cash flow and market added value have been put forward in recent years, and the overall performance of enterprises has been comprehensively evaluated from the past business results, the actual financial strength during operation and the evaluation of market prospects for enterprises.

In the future, we will further expand the traditional financial analysis index system, and the financial evaluation index of intangible assets such as knowledge capital will increase.

Ten, establish a global financial concept.

The era of knowledge economy has created favorable conditions for the international operation of enterprises.

Because knowledge capital is easier to pfer across the country, and the development of information technology makes space relatively smaller and the economic ties between countries become more and more close, the operation of enterprises shows the characteristics of globalization.

Under these conditions, enterprises must set up the concept of global financial management and look at the world.