The embryonic period of financial management About financial management originated in the late 15th and early 16th century. The Western capitalist society is in its infancy, the Mediterranean coastal cities in the many commercial business organizations from the public shares, shares of the shareholders merchants, kings, ministers and members of the public and so on. Economic development and business interests objectively reasonable forecast of capital requirements require companies to effectively raise capital. However, when business is not big capital requirements, financing sources and financing relatively simple, only the financing of enterprises affiliated with the business management and financial management have not formed an independent career, this situation continued until 19 Late 20th century. Funding period of financial management Period of financial management regulations As_set_s in the period The late 50s, the overall value of the company's attention and study, is another financial management theory significantly. In practice, investors and creditors often based on the company's profitability, capital structure, dividend policy, business risk and a series of factors to determine the value of corporate stocks and bonds. As a result, capital structure and dividend policy of being highly valued. Key financial results during this period are: 1951, U.S. financial experts Dean (Joel Dean) published the first book of financial theory of investment "capital budget" for financial management from financial management to finance the rapid development of the financial management of as_set_s played a decisive influence; 1952, Harry Markowitz (HMMarkowitz) published "Portfolio _Select_ion", that in a number of reasonable assumptions, the variance of return on investment is an effective way to measure investment risk. From this basic perspective, 1959, Markowitz published a monograph, "Portfolio _Select_ion" from the measurement of income and risk of starting to study a combination of issues between the various as_set_s. Markowitz also recognized as the founder of schools of portfolio theory; 1958, Franco Modi Lian Ni (Franco Modigliani) and Miller (Merto H. Miller) in "American Economic Review" published "capital costs, corporate finance and investment theory ", proposed the famous MM theory. Modi Ge Lenny and Miller capital structure theory in the study because of the outstanding achievements in 1985 and 1990, respectively, was awarded the Nobel Prize in Economics; 1964, Sharp (William Sharpe), Lintner (John Lintner) and so on based on the Markowitz theory, put forward the famous capital as_set_ pricing model (CAPM). Systematically expounded the portfolio risk and return relationship, the distinction between the systematic risk and non-systematic risk, clearly a non-systematic risk can be reduced through diversification and other point of view. Capital as_set_ pricing model to portfolio theory revolutionary changes have taken place, along with Sharp thus Markowitz shared the Nobel Prize for Economics of the 22nd's honor. In short, in this period to study the financial decision-making as the main contents of the "new financial theory" has been formed, and its essence is emphasis on the prior financial management control, the company emphasized its close ties with the economic environment, as_set_ management decision-making as center, financial management theory took a big step forward. Investment period of financial management Since the end of World War II, the rapid development of science and technology, faster product replacement, the rapid expansion of international markets, multinational corporations increased prosperity of the financial markets, the market environment more complex, increasing investment risk, companies must pay more attention to investment returns and avoid investment risk, which financial management has been put forward higher requirements. After the mid-60s, financial management, the focus shifted to investment, so the period known as the investment of financial management. As mentioned above, portfolio theory and capital as_set_ pricing model reveals the risk of as_set_ expected returns and their relationship, welcomed by the investment community. It is not only the pricing of securities based on the interaction between risk and reward basis, but also greatly changed the company's as_set_ _select_ion strategy and investment strategy, is widely used in the company's capital budgeting decisions. As a result, the original cause of Finance more independent in the two areas - investment, and financial management of each portfolio, the company's financial management theory into a new era of investment in financial management. Financial management of as_set_s during the preceding financial investment in research is also the main financial management of the initial financial results. 70 years later, the company introduce new financial instruments and financial markets in an increasingly strengthened. Warrants, financial futures and other widely used in corporate financing and foreign investment activities, financial management theory to promote more development and improvement. The mid-70s, Black (F. Black), who founded the option pricing model (Option Pricing Molde1, referred to as OPM); Stephen Ross made arbitrage pricing theory (Arbitrage Pricing Theory). During this period, the modern theory of management to become more sophisticated investment management, mainly in: the establishment of a rational investment decision-making process; formed a sound investment decision-making index system; establishment of a scientific risk of investment decision-making methods. Generally believed that 70 years of financial management theory in the West to mature period. Hunting companies that employ the flames due to absorption of the natural and social sciences fruitful results, financial management and further development of a _set_ of financial projections, financial decision-making, financial planning, financial control and financial analysis in one, in order to finance management, investment management, working capital management and profit distribution management as the main content of the management activities, and in business management is the core position. In 1972, Fama (Fama) and Miller (Miller) published the "Financial Management" book, this collection of Great Western Financial management theory book, marking the western financial management theory has been developed. A new period of deepening the development of financial management The late 20th century, 70, corporate financial management into the development of a new period of deepening, and toward internationalization, precise, computerized, network oriented development. The late 70s and early 80s, the Western world in general suffered a prolonged inflation. Large-scale occupation of the continuing rapid rise in inflation, leading to capital, financing costs as interest rates, depreciation of securities, corporate financing more difficult, the company inflated profits, wastage of funds. Serious inflation to a series of unprecedented financial management issues, so this period is mainly the task of financial management to deal with inflation. Inflation had become a hot issue of financial management. Since the late 80s, import and export trade financing, foreign exchange risk management, international transfer pricing issues, international investment analysis, multinational financial performance evaluation has become a hot research of financial management, and thus created a new branch of Finance - International Financial Management. International Financial Management branch of modern finance. In the late 80's, Latin America, Africa and Southeast Asia into heavy debt crisis of developing countries, former Soviet Union and Eastern European countries, political turmoil and economic meltdown, the U.S. experienced a trade deficit and budget deficit, trade protectionism was prevalent. This series of events leading to the international financial market turmoil, the investment and financing environment, enterprises face a high degree of uncertainty. Therefore, enterprises in their financial decision-making in the growing importance of financial risk assessment and avoidance, the results of utility theory, linear programming, game theory, probability distributions, simulation techniques such as Quantitative Methods in the financial management of growing. Financial risks and financial forecasting, quantitative decision-making are highly valued. With mathematical methods, applied statistics, optimization theory and computer and other advanced methods and tools in financial management applications, financial management theory there was a "revolution." Financial analysis to the precise direction of rapid development. The birth of 80 years of financial management information system. Since the mid-90s, computer technology, electronic communications and network technology is developing rapidly. A great revolution in financial management - financial management of the network, has quietly come.
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Financial management objectives
1, profit maximization 2, to maximize earnings per share 3, and corporate wealth (value) maximization Associated with the financial management objectives - financial management and the various advantages and disadvantages of objective evaluation of the basic ideas 1. Profit-maximizing Fundamental point: the profit of the enterprise on behalf of the newly created wealth, the more profit that business wealth is increasing, the more close to the business goals 2. To maximize earnings per share Fundamental point: should the enterprise's profits and shareholders to consider linking the capital invested, with earnings per share to summarize the financial management objectives, and thus to avoid the "profit maximization" which targets a weakness Disadvantages: The goal remains to achieve earnings per share did not consider the time value factor, In addition, the risk is still not considered Advantages: Solving the "profit maximization" in the profit and capital investment in the defect 3. Corporate wealth (value) maximization Fundamental point: to increase shareholder wealth is the goal of financial management Advantages: The goal of solving the "profit maximization" target in all three defects Disadvantages: difficult to measure
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Financial topics
1, funding management 2, Investment Management 3, working capital management 4, the profit distribution management
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The basic theory of financial management
(1) Capital structure theory (Capital Structure) Capital structure theory is to study the structure of corporate financing and the relationship between market value and the theory of Modigliani and Miller .1958 conclusions of the study are: the improvement and efficient financial markets, corporate value and capital structure and dividend policy nothing - MM theory. Theory due to be MM Miller Nobel Prize in Economics in 1990, 莫迪利尼亚 won Nobel Prize in Economics in 1985. (2) Modern Portfolio Theory and Capital As_set_ Pricing Model (CAPM) Modern Portfolio Theory is the best portfolio on the theory of Markowitz .1952 (Harry Markowitz) put forward the theory that his conclusion is: as long as the change in income between different as_set_s are not perfectly positively correlated, you can access portfolio approach to reduce investment risk. Markowitz won this Nobel Prize in Economics in 1990. Capital as_set_ pricing model is to study the theory of the relationship between risk and return. Sharp et al study concluded that: the risk of individual as_set_s, return on risk-free rate of return depends on the market rate of return of portfolio risk and the risk as_set_s. Sharp thus been Nobel Memorial Prize in 1990. (3) option pricing theory (Option Pricing Model) Option pricing theory is the option (stock option, foreign exchange options, stock index options, convertible bonds, convertible preferred stock, warrants, etc.) to determine the value or price of the theory theory In 1973 Scholes option pricing proposed model, also known as the B-S model is .90, since options trading has become the main theme of the financial sector. Therefore, Scholes and Merton won the Nobel Prize in Economics in 1997. (4) efficient market hypothesis (Efficient Markets Hypothesis, EMH) Efficient market hypothesis is the study of capital market securities prices reflect the degree of information theory. If the capital market prices of securities fully reflect all relevant information, called the efficient capital market. In this market, the Securities and Exchange can not obtain economic benefits. Theory is a major contributor to Fama. (5) agency theory (Agency Theory) Agency theory is the study of different financing and capital structure under different level of agency costs, and how to reduce agency costs increase corporate value. Theories are a major contributor to Johnson and Maike Lin. (6) asymmetric information theory (Asymmetric Information) Asymmetric information refers to the internal and external personnel on the company's actual level of understanding of the different operating conditions, that the persons concerned in the company there are asymmetric information, this information asymmetry will cause different judgments on the value of the company.
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Capital As_set_ Pricing Model
(CAPM) Modern Portfolio Theory is the best portfolio on the theory of Markowitz .1952 (Harry Markowitz) put forward the theory that his conclusion is: as long as the change in income between different as_set_s are not perfectly positively correlated, you can access portfolio approach to reduce investment risk. Markowitz won this Nobel Prize in Economics in 1990. Capital as_set_ pricing model is to study the theory of the relationship between risk and return. Sharp et al study concluded that: the risk of individual as_set_s, return on risk-free rate of return depends on the market rate of return of portfolio risk and the risk as_set_s. Sharp thus been Nobel Memorial Prize in 1990. (3) option pricing theory (Option Pricing Model) Option pricing theory is the option (stock option, foreign exchange options, stock index options, convertible bonds, convertible preferred stock, warrants, etc.) to determine the value or price of the theory theory In 1973 Scholes option pricing proposed model, also known as the B-S model is .90, since options trading has become the main theme of the financial sector. Therefore, Scholes and Merton won the Nobel Prize in Economics in 1997. (4) efficient market hypothesis (Efficient Markets Hypothesis, EMH) Efficient market hypothesis is the study of capital market securities prices reflect the degree of information theory. If the capital market prices of securities fully reflect all relevant information, called the efficient capital market. In this market, the Securities and Exchange can not obtain economic benefits. Theory is a major contributor to Fama. (5) agency theory (Agency Theory) Agency theory is the study of different financing and capital structure under different level of agency costs, and how to reduce agency costs increase corporate value. Theories are a major contributor to Johnson and Maike Lin. (6) asymmetric information theory (Asymmetric Information) Asymmetric information refers to the internal and external personnel on the company's actual level of understanding of the different operating conditions, that the persons concerned in the company there are asymmetric information, this information asymmetry will cause different judgments on the value of the company.
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Financial management position in the enterprise
1, the financial management is the reproduction process based on objective corporate financial activities and financial relations generated, is the financial activities of organization to deal with all aspects of financial relations with an economic management. 2, it is through the value form of capital movement and management, the same as the penetration of the blood through to the production, management and all other management areas.
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Financial Management Majors
Macro and micro economics, international economics; management, economic law and international commercial law, marketing; operations research, applied statistics, economic forecasting and decision-making, quantitative economics, computer technology and applications, engineering and technical base; technical economics, project evaluation and feasibility studies, project financing, project cost management; financial accounting, advanced financial accounting, cost accounting, management accounting, financial statement analysis, corporate finance, financial audit, financial information management system; insurance and actuarial, as_set_ assessment, international financial, investment, financial as_set_ management, real estate development and management and so on. Well-known lecturer in financial management team Xiao Xudong School of Finance Renmin University of China, Distinguished experts; Chief Financial Officer Class Guest Lecturer, Tsinghua University; senior financial management consultant, top experts in risk management, financial managers to create one network; "CFO" magazine consultant; China, "Management Accounting "Research Center of one of the founders; several management consulting firms and institutions (Puer Mo, and Jun, the Chinese financial and tax consulting network, CFO magazine), senior financial management consultant; financial center of technology development and application of expert consultants; Choi Chi Oriental Academy of Distinguished experts, financial technology center, financial technical network (www.cfoteam.com.cn) invited experts, with ten years of international experience in leading the company's financial management, has served as Finance Manager IBM China Holdings factories, a large mobile phone in China Chief Financial Officer manufacturing marketing firm, solid theoretical foundation coupled with his wealth of practical work and management experience, to combine the financial management system for the number of enterprises established through financial management. Holding company's financial manager, IBM seven years; five major mobile phone manufacturers a Beijing marketing company Chief Financial Officer; a Central Purchasing Director of Enterprise Terminal Business Division; Beijing Financial Officer of a large-scale enterprises; years of teaching experience in financial management courses; in-depth study, study manager , financial director of training, education system and professional growth environment for more than a decade. China's first generation of professional senior managers, the world's top multinational companies for many years of experience, accumulated a wealth of business management experience in corporate strategy, financial management, financial technology, have very profound attainments, is a highly successful financial management specialist. Courses: "Financial and create value" courses: "Financial to create value! How to do financial? "" How to build a good financial sector? "" What makes a great financial manager? "," Beyond the numbers, control the budget (how well the budget management ?)"," competitive strategies, cost leadership (how to make cost management ?)"," internal control, risk management (how well the internal control?) " "Respect the capital, riches flashing bright side of humanity (non-financial manager financial courses)", "Financial how to support the procurement cost control procurement operations," "how to support the marketing of financial receivables management" and "new thinking corporate performance evaluation " LIU Guo-dong Financial Technology Center (http://www.cfoteam.com.cn) expert lecturer, Chair of the consultant; Certified Public Accountant in China, Chinese Certified Tax Agents, registered valuer in China; Financial technology experts, Beijing, Jinan Cheng, director of CTA firm, Beijing-day senior manager with the letter of Certified Public Accountants. Courses: "Corporate income tax final _set_tlement"; "corporate tax planning"; "Chief Financial Officer of risk prevention"; "under the new Enterprise Income Tax Law and Tax Planning," and so on. PROCEEDINGS A truly integrated international manufacturing grew up supply chain management and inventory control specialists, Integrated Supply Chain (ISC) business process and performance review, risk assessment experts, Distinguished Professor of the China Enterprise Confederation, many famous management consulting firm , ERP consulting firms, logistics companies, manufacturers Senior Advisor; ten years of background in international manufacturing, Daewoo Heavy Industries in South Korea was the United States, Dunham-Bush air conditioning, IBM Microelectronics Division (MD), Europe ELCOTEQ electronics and other famous enterprises as planned Head of Purchasing and Logistics Manager, Senior Materials Manager, Demand and supply chain managers and other senior positions; familiar with SAP, BAAN and other high-end ERP software. Courses: "Inventory Control Manufacturing Technology and Strategy"; "Supplier _select_ion and review"; "manufacturing logistics management"; "supply chain management"; "inventory control"; "integrated supply chain management and inventory control business processes"; "supply chain and logistics management business process improvement and restructuring " Wen Zhaowen Financial Technology Center (www.cfoteam.com.cn) chief financial experts, senior partner. Courses: "Budget Management with international norms," "Financial Analysis and Control", "internal control and business process optimization," "non-financial staff training in financial management skills", "Financial development team building and mental training" and "financial manager competency model" , "ABC actual operating cost management training" and "enterprise cost strategic design" and so on. 98% out of the open class, customer support rate of 99%. Wu Xuedong "CFO" magazine consultant; National Accounting Institute CF0 class guest lecturers; 2005 top ten CF0, excellent CF0 winner; Capitel Co., Ltd is currently vice president of marketing director. Wu Xuedong graduated from the University of New South Wales (Australia) International accounting profession, is a Master of Commerce, more than ten years experience in domestic and foreign large enterprises, so that force teachers to accumulate in the growing wealth of experience, especially in the corporate finance strategy and budget , has a prominent achievements. Courses: "Strategic cost management"; "comprehensive budget management"; "beyond the budget, hold the future"; "upgrade the functions of the Ministry of Finance"; "general manager of financial management skills"; "how to control the company's profits? "
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Book Information
Title: Financial Management Of: Hu Zhiyong Publisher: Beijing University of Technology Press Publication date: September 2009 ISBN: 9787564025670 Folio: 16 open Price: 28.00 yuan Summary: "Financial Management" is based on adult education personnel training objectives, curriculum and teaching the course made the preparation of the actual situation. In reference to a large number of relevant books and literature, based on the activities of financial management we follow the general rules and closely integrate theory and practice of the principle of movement characteristics to the main line of enterprise funds, trying to concise, systematic introduction to the modern enterprise financial management basic concepts, basic principles and methods, with emphasis on modern corporate finance, investment and allocation problems of decision theory and method, and in the following positive aspects of exploration and try: First, cutting-edge theory and systematic. We will be at home and abroad in recent years been shown to have reasonable empirical study of the latest scientific research to be systematic, and as a "financial management" of the theory, such as the doctrine of market efficiency, capital as_set_ pricing theory. Second, the theory of practical and operable. Ensuring systematic and cutting-edge theory, based on the focus for the field of financial management, improve availability and operability of the theory. For a long time, the theory of practical and operational discipline for many applications failed to properly address the main material, we give the issue a great deal of attention to the maximum extent possible to arrange and processing. First, choose a feasible and effective financial management theory as a "financial management" of the theory; Secondly, in solving the same class of the many specific issues of financial management theory and methods, _select_ion of the method constitutes a practical and operational "financial management" of the enterprise financial management system, and _select_ion and with a lot of examples to enhance understanding and application; again, in order to achieve close integration of theory and practice purposes, the actual number of _select_ed domestic and international financial management of the incident as a case study specifically reveal the decision-making ideas, theories and methods. Third, the analysis tools can be applied. In order to facilitate mathematical knowledge does not have the advanced readers, our common office software Excel as a "financial management" case study of the main tools to try to make the reader in a short period of time to become familiar with and apply these methods to solve practical problems of financial management . Fourth, the reality of the content and policy. We have the choice of materials and arrangements, as closely as possible close to the business needs of financial management practice, as far as possible in line with our existing relevant policies and regulations, as Zongjie financial management practice and financial management of the successful experience of the latest theory research, described by the shallow people deeply about the content of financial management, with particular emphasis on the development of modern enterprise and financial theory necessary to be taken by way of financial management decisions. Fifth, the financial management of the universality and applicability of the arrangement of the structural system, basically in accordance with the internal financial management practices of rule, the _select_ed key financial management also has universal significance for all different types of enterprises. Some important financial management are universal, not only a general summary of the analysis steps, and with the specific issues to be analyzed and used to give the reader a demonstration. Particularly in some key sections, but also with the real topic of financial management practices throughout for readers to more in-depth understanding of imitation and to master this type of analysis to enable effective use of the financial management of enterprises, played it the desired effects.
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Encyclopedia
caiwu guanli Financial Management financial management Various types of enterprises and economic organizations, administrative and other units of the financial activities of planning, decision making, control, evaluation, and supervision of work in general. A form of value management. Content according to different management, financial management can be divided into: ① The capital receipts and payments as the main content of the administrative institutions and other non-profit organization's financial management; ② the movement of funds for the content of the whole process profit organizations, companies and other financial management . In China, due to movement of different views of enterprise funds, which have broad financial management of enterprises, the narrow two kinds of understanding. Broader financial management including financial, cost, profit management; narrow financial management excludes the cost of funding (cost) management. Under the socialist system, financial management is the policy of national unity in accordance with laws and rules and regulations, is an organization dealing with capital movements and financial relationship management activities. Broadly speaking, the socialist enterprises and economic organizations in the movement of funds, including financing and the use and proliferation of cost of funds, capital recovery and distribution. These activities occur because of the economic relations between the financial relationship has four main aspects: ① enterprises and economic organizations and the financial relations between the countries. Between different countries, including financial contributions, funding relationship between the State Bank deposits, lending relationships, and authorities turned over the funds allocated between the relations. ② enterprises and economic organizations of the financial relationships between. Mainly refers to the enterprises and economic organizations to provide goods and services between each other, in accordance with the principle of equal exchange of funds to pay the price _set_tlement relationship occurs. ③ enterprises and economic organizations within the financial relationship between the various units. With specific funding sources, including the different business activities that occurred between the _set_tlement of funds between and within the various units to provide products and services for mutual fund _set_tlement occurred relationship. ④ enterprises and economic organizations and the financial relationship between the respective employees. Mainly refers to the payment of wages, bonuses and all debts incurred by the liquidation fund _set_tlement relationship. In practice, the management of financial activities include: the mobilization and use of business fixed capital, corporate liquidity management of special funds to a variety of expenses and cost management as the main content of capital cost management, and organization of sales and the kinds of business income activities, income and allocation of funds related to the management, and funds used to study various forms and composition of various sources of funds and their relations activities related to the integrated management of financial revenues and expenditures. Financial management tasks: organizing the supply of funds to ensure that business needs to improve capital effectiveness; implemented to increase revenue, reduce production cost and improve profitability; reasonable distribution of income, paid to complete the task, adjusting the financial relations; for financial supervision, safeguarding financial financial system, improve overall efficiency. Organization shall comply with the principles of financial management are: the implementation of planning guidance, reflecting the economic accounting system, to establish a unified leadership and hierarchical sub-population management system, implement the principle of material interests, to achieve the responsibilities, rights, and profit. (Yan for five)
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Accounting Wikipedia
Financial management is the reproduction process based on objective corporate financial activities and relationships generated, is to organize enterprise fund activities to address all aspects of corporate financial relationship with a financial management is an important part of business management. Financial management is an important part of business management, penetration into all areas of business, all aspects of being. Financial management is directly related to the survival and development, in a sense, the financial management is a key for sustainable development
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Financial Management (financialmanagment)
Engaged in fund raising, use and distribution as well as dealing with the management of economic relations between the parties concerned. By management of the main financial management, macro finance, department of finance, corporate finance, non-profit organizations, financial, family finance, financial management, but a muscle mainly of corporate financial management. Corporate financial management is the management of a subsystem of the system is the management of enterprise funds to campaign, is a value management. As production of all aspects of business operations and effectiveness of most of the quality movement can be reflected in the fund, the financial management of highly integrated, the business activities of enterprises can generate feedback, facilitating role. With the financial management of the development of commodity economy, the formation and development. Early management of financial management is only incidental to the functions of business. As an independent management, financial management within the world began in the 19th century Western capitalist countries, and has undergone several stages as follows: (1) "traditional financial management" stage. 19th century, the industrial revolution has been completed, the new technology and new equipment continue to emerge, the production can be greatly developed, companies need capital to expand; the same time shape the capital markets for securities issuance and trading possible. Incidentally, the company as the main financial management, which focuses on raising funds through capital markets, the solution is a way of funding, methods, and merger and other legal matters. This situation continued into the 20th century, about 20 years. (2) "integrated financial management" stage. 30 years of economic crisis, forcing companies starting to focus on financial management, efficient use of company funds, and to explore the relevant enterprises in bankruptcy, restructuring and management of government securities issues, financial management is no longer the center of the expansion of the company but the company's survival. After World War II, the focus of financial management is the first post-war revival of the construction of the external environment and thus emphasis on the improvement of the company, from the perspective of investors and creditors analysis, and financial issues; then shift the focus of the financial management of the company internal control, increased attention to effective capital allocation within the company to solve capital budgeting, investment decisions, working capital management, dividend policy and other aspects of financial problems. While continuing to fund-raising as an important part of financial management and has achieved new development. (3) "modern financial management" stage. 60 years from the 20th century, the financial management to a broad and deep development, the main feature is the evaluation of the value of enterprises, resulting in a series of new theories and new methods, such as the total enterprise value theory, portfolio theory, capital as_set_ pricing model, _set_s Lee pricing theory. In addition, inflation finance, mergers and liquidation of finance, international financial management, financial issues also receive attention martyrs. China's reform and opening up, with the socialist market economy and modern enterprise system, enterprises have become an independent financial body, the content and methods of financial management is required to a modern market economy, changes in financial management work is playing an increasingly important role. The contents of the financial management of funds by the movement of enterprise content decisions, including financing management; in accordance with the financial management aspect of the method is divided into financial forecasts, financial decision-making methods, financial planning methods, financial control methods and financial analysis.
finance and accounting