What does corporate financial management include?

Corporate financial management is the management of a company’s financial activities, and mainstream business management education such as MBA and MBA include it as an enterprise value management activity.

Corporate financial management mainly focuses on forecasting, decision-making, planning, control, accounting and analysis of the raising, use and distribution of funds in the company's production and operation activities based on the movement patterns of funds, so as to improve the effect of fund use and achieve Management of capital preservation and appreciation.

In the modern market economy, the intricate economic relationships formed by commodity production and exchange all use funds as the carrier, and the movement of funds becomes the embodiment of various economic relationships. Corporate finance all revolves around the movement of funds.

Extended information:

Corporate financial management has three major characteristics: openness, dynamics and comprehensiveness.

1. The modern market economy is dominated by the financial market. As a place for corporate financing and a link between the supply and demand of corporate funds, the financial market has a decisive influence on the socialization of corporate financial behavior. The openness of the financial market system determines the openness of corporate financial behavior.

2. Corporate financial management takes capital movement as its object, and capital movement is a general and essential abstraction of the business process, and a comprehensive reproduction of the reproduction and operation process of the company. Therefore, corporate financial management activities centered on fund management are a dynamic management system.

3. Corporate financial management revolves around capital movement. Capital movement, as the main process and comprehensive performance of the main aspects of enterprise production and operation, has the greatest comprehensiveness. Mastering the movement of funds is like holding the "nose" of an enterprise's production and operation, "moving one hair can affect the whole body." Comprehensiveness is an important feature of financial management.

Baidu Encyclopedia-Corporate Finance