Keywords: corporate finance; Financial management objectives; Optimization of capital flow
The theory of financial management objectives is a theory to study the formation, expression and realization of financial management objectives in a certain social and economic environment, and it is an important part of the theoretical structure system of financial management. It organically links all elements of financial management theory like a link, which makes financial management theory holistic and purposeful. Correctly understanding and establishing financial management objectives is not only an important content of financial management theory research, but also an objective need of financial management practice.
First, the starting point of the theoretical structure of financial management is questioned.
At present, many scholars advocate taking financial management objectives as the logical starting point of the theoretical structure of financial management. They believe that the financial management goal is the combination of financial management theory and practice, the basic element and the highest level in the theoretical structure of financial management, and therefore the starting point of financial management theory research. To some extent, this view overcomes the defect that the previous "essential starting point" theory is divorced from practice, highlights the application function of financial management theory and its adaptability to the environment, and helps to maintain the identity of financial management theory and practice and make them closely combined. However, the author believes that theoretical research cannot adopt pure pragmatic methods. Theory is the product of practice, which comes from and is higher than practice. It is the result of rational thinking and abstraction of the nature of the objective object studied and the regularity shown in its interaction with the surrounding environment. Therefore, taking financial management objectives as the logical starting point of the theoretical structure of financial management has many defects that are difficult to justify.
1. The goal is not purely objective. From the perspective of epistemology, theory is the product of the active thinking of the research subject to the research object. The logical starting point of the theoretical structure of financial management must be objective things. Obviously, the financial management goal does not have this feature, it is not purely objective, but has a strong subjective consciousness, and there will be different financial management goals under different time and space conditions, so building a theoretical structure of financial management will be an unstable theoretical structure.
2. Theoretical structure is a scientific reflection of the logic of the objective object studied. The so-called theoretical structure of financial management refers to the definition of the elements of the theoretical system of financial management and their arrangement and combination through thinking activities based on people's understanding of financial management practice activities. The financial management goal we are talking about is not the objective object of financial management research, and it does not have the function of establishing the theoretical structure system of financial management according to its own logical relationship, that is, scientifically reflecting the financial management theory.
3. Financial management objectives are not only influenced by the financial environment, but also restricted by financial management functions. The goal of financial management can not go beyond the financial management function, but only within the scope of financial management function. In addition, financial management objectives are also restricted by factors such as financial management objects. Therefore, the theoretical structure of financial management based on the financial management goal can not fully reveal the contents of various elements in the theoretical system of financial management, which will eventually lead to the poverty of financial management theory and the low level of theoretical structure.
4. Science is an objective and rational reflection of facts, and the objectivity and correctness of scientific theories should come from the judgment of facts. The pragmatic value judgment of "meeting my needs is the truth" is subjective, which is about the purpose and contains personal preference and emotional consciousness, and does not conform to the practice as the criterion for testing truth. Therefore, the research of scientific theory should strictly distinguish between fact judgment and value judgment. The construction of the theoretical structure of financial management cannot start from the objective value judgment of financial management, that is, "meeting the needs of a certain aspect", because the theoretical structure system of financial management formed from this will not be able to accept the test of objective facts and obtain the knowledge of financial management practice.
Second, the function of financial management objective theory
Although the theory of financial management objectives can't be used as the starting point to construct the theoretical structure of financial management, it is an indispensable and very important level in the theoretical structure of financial management as the purpose and requirement of the subject and object of financial management practice. Its function is mainly manifested in three aspects:
1. The theory of financial management objectives is the link between the basic theory of financial management and the management theory. On the one hand, it is established according to the basic theories of financial management subject, financial management object, financial management function and financial management characteristics, which embodies the objective requirements of basic theories; On the other hand, it plays a guiding role in financial management procedures, financial management methods and the operation theory of financial management organizations, and guides the development of financial management operation theory.
2. The theory of financial management objectives is a bridge between financial management theory and financial management practice. Financial management is a highly applied subject. It is necessary to generalize from the theoretical point of view through basic theory, but it must be put into concrete financial management practice to form practical theory to guide financial management practice. The guiding role of financial management theory in financial management practice is concentrated in guiding and standardizing financial management, which is the role of financial management target theory. The theory of financial management objectives is actually a bridge between financial management theory and financial management practice, so that financial management theory can effectively serve financial management practice.
3. The theory of financial management objectives is the directional mechanism for the operation of financial management theory system and practice system. It is not only a guide for the operation of financial management theory system and practice system, but also a standard and basis for evaluating whether financial management is reasonable and effective, which guides the development of financial management theory and practice in a good direction.
Third, the level of financial management objectives
The hierarchical nature of financial management content determines that financial management objectives are a hierarchical organic system. The basic contents of enterprise financial management can be divided into fund-raising management, investment management, working capital management and income distribution management, and each aspect can be subdivided. For example, financing management can be divided into several stages, such as predicting capital demand, selecting financing channels, determining financing methods, and determining capital structure. The hierarchy and subdivision of financial management content make financial management objectives a target system consisting of three levels: overall objectives, divisional objectives and specific objectives.
1. The overall goal is the ultimate goal of all financial activities of an enterprise. The overall goal determines the division of labor goals and specific goals, determines the basic direction of enterprise financial management, and is the starting point and destination of all financial activities of enterprises.
2. The goal of the division is to achieve the goal of carrying out certain financial activities under the constraint of the overall goal. Although the division objectives should reflect the characteristics of enterprise financial activities, they are generally subordinate to the overall objectives and play a guarantee role in the realization of the overall objectives. Division objectives generally include four aspects: fund-raising management objectives, investment management objectives, working capital management objectives and income distribution management objectives.
3. The specific goal is to achieve the goal of engaging in a specific financial activity under the constraints of the overall goal and the division of labor goal. For example, the goal of cash management and the goal of inventory management. The specific target is the basic link in the financial management target system, and it is the foothold of the overall target and the division target, which is of great significance to ensure the realization of the overall target and the division target.
The hierarchy of financial management objectives requires us to combine the personality of financial management with the specific content of financial management, take the overall goal as the center, do all aspects of financial management well, and ensure the full realization of the target system.
Fourth, the orientation of enterprise financial management objectives under the condition of knowledge economy
Western scholars have made a long-term and in-depth study of financial management objectives, and have successively formed such viewpoints as profit maximization, net present value maximization, capital cost minimization, shareholder wealth maximization and company wealth maximization. After the founding of the People's Republic of China, especially since the reform and opening up, Chinese financial management scholars have also conducted in-depth discussions on financial management objectives and put forward many viewpoints. Among them, the most representative viewpoints are maximization of output value, maximization of economic benefit, maximization of profit, maximization of profit per share, maximization of shareholders' wealth, maximization of enterprise value, maximization of enterprise social value, optimization of asset structure, efficiency and fairness.
How to locate the financial management goal (overall goal) is a problem worth pondering. The author believes that the study of financial management objectives should first make clear what financial management is, what work needs to be done in a certain business environment, and what tasks are expected to be completed by various departments and links of enterprise management.
The author believes that the object of financial management is the capital movement of enterprises and the financial relationship formed by it. Under the condition of market economy, the financial management of enterprises is mainly to raise funds, invest, operate and distribute. All departments of enterprise management mainly hope that enterprise financial management can improve the quality and effect of capital movement and provide financial support for enterprise management. According to the above characteristics and requirements, the author thinks that the optimization of capital movement should be the goal of enterprise financial management under the condition of the integration of information economy and world economy. If expressed by an index, it is to maximize the internal rate of return of all capital. Taking this as an enterprise's financial management goal, it not only considers the operation quality and effect of all capital, but also considers the time value and risk factors of money, which can be compared between enterprises with different investment scales and between different periods of the same enterprise.
On the basis of determining that maximizing the internal rate of return of all capital is the general goal of enterprise financial management, some auxiliary financial management goals should be set to promote the overall improvement of the quality and effect of enterprise capital movement.
The author believes that to investigate the capital movement process of an enterprise, we should not only see its dynamic performance, that is, the flow in a certain period, but also see its static performance, that is, the stock in a certain period of time. The process of enterprise capital movement is essentially a process in which flow and stock are interrelated and transformed. Therefore, the optimization goal of capital movement includes two sub-goals: capital flow optimization and capital stock optimization. From the optimization goal of capital flow, it can be reflected by maximizing net cash flow. Because cash is the starting point and end point of enterprise capital movement, the quality and effect of modern enterprise capital movement are largely reflected in the size of net cash flow. Only by maximizing the net cash flow can the interests of investors, enterprises, employees, creditors and the state be guaranteed, otherwise, the interests of all stakeholders will be difficult to meet, and the profits on the books can only be painted to satisfy hunger. From the optimization goal of capital stock, it includes two specific goals: minimizing the cost of capital and maximizing the profit rate of capital. The former is the requirement of financing, while the latter is the requirement of investment and capital operation.