What are the three categories of financial management objectives?

(A) to maximize profits

(2) Maximizing shareholder wealth

(3) Maximizing enterprise value

The following details are introduced:

The goal of financial management is the starting point and destination of enterprise financial management. Financial management objectives are divided into basic objectives and specific objectives. The basic goal of financial management refers to the goal that plays a leading role in the financial management activities of enterprises, and is the navigation mark to guide the financial management of enterprises. The basic goal of enterprise financial management should be consistent with the overall goal of the enterprise, but the content of financial management should be considered. Western financial management summarizes its contents as financing, investment, application and distribution. In China, the content of financial management is usually divided into fund raising, utilization and distribution. There is no strict difference between them in the content framework, which is reflected in fund-raising management, investment management, profit distribution management and so on. From this, we can determine the basic objectives and specific objectives of financial management and their relationship. That is, the basic goal of enterprise financial management reflects that the goal of enterprise financial management is consistent with that of other management activities. The realization of the basic goal of enterprise financial management cannot be achieved by enterprise financial management on the one hand, but requires the joint efforts of other management aspects of the enterprise. The basic goal of enterprise financial management directly restricts its specific goal, which must be subordinate to or subordinate to the basic goal. If the specific goal deviates from the basic goal, it will promote its meaning of existence.

(1) The basic goal of financial management. The integrity principle of system theory holds that the whole system is greater than the sum of its parts. When determining the basic objectives of financial management, it must be consistent with the management objectives of enterprises and give full play to the overall advantages of enterprises. The basic goal of financial management is to provide social benefits while constantly pursuing the satisfactory value of enterprise economic benefits. Because social benefits are the functions and benefits that enterprises bring to the outside of enterprises, and they are the contributions of enterprises to society. As a system, enterprises must "keep the exchange of material, energy and residence with the environment to save their lives". The basic function of an enterprise is to provide products and services to the society. Enterprises must understand what products the society needs, provide good after-sales service while ensuring quality, create more employment opportunities, and continuously reduce environmental pollution, that is, pursue economic benefits while providing social benefits. Otherwise, the development of the system will come to a dead end. For example, Bell Telephone Company of the United States initially took economic benefits as the system goal. At first, the system developed according to the expected goal, but soon it felt that sales were not smooth and economic benefits declined. Through analysis and research, it is found that it is not enough to simply pursue economic benefits, but also to provide after-care services, taking social and economic benefits as the overall goal of the system. Therefore, the system has made new development. The same is true of successful enterprises in China, such as Konka and Haier. From this we speculate that many enterprises are difficult to succeed, and besides other reasons (such as technology), unclear or incorrect financial management objectives are also an important aspect.

Compared with "maximization" (including enterprise profit maximization, shareholder wealth maximization or enterprise value maximization), the formulation of "economic benefit satisfaction value" is more scientific and applicable. Because, first, economic benefit is the ratio of income and expenses of an enterprise, which pursues economic benefit while providing social benefit, reflects the dependence between the enterprise and the environment, is consistent with the overall goal of the enterprise, and reflects the essential requirements of financial management, and can be decomposed in detail to form internal financial control indicators of the company. Second, the formulation of maximization itself is not scientific enough. Because according to philosophical theory, the development of everything is relative, not absolute. From the perspective of system theory, if the bottom-up management system is regarded as the absolute purpose, then it is a system composed of people, operated by people and served by people. In this case, the enterprise is not so much acting in accordance with the purpose of maximizing profits as it is acting in accordance with the degree of satisfaction. Profit maximization can only be achieved on the basis of establishing a model based on some subjective factors. But there are countless factors in reality, including many political, sudden and strategic uncertainties. It is extremely difficult to establish a complete model including diet and other factors to adopt the maximum profit policy. Satisfactory economic benefits can be reflected in reality. For example, on the premise of meeting social benefits, the economic benefits will increase by 10% over the previous year or reach the advanced level in the same industry, which will make it easier to standardize enterprise management and financial management and fully reflect the interests of all aspects related to enterprises.

(2) Specific objectives of financial management. The process of enterprise capital movement and the basic goal of enterprise financial management determine the specific goal of enterprise financial management. The specific target consists of three aspects, namely, enterprise financing target, enterprise investment target and profit and loss distribution target.

The goal of raising funds. Enterprise financing is a financial activity for enterprises to obtain production and operation funds from fund providers. Financing is the starting point of enterprise capital movement, and it is an important link that determines the scale of enterprise capital movement and the development speed of production and operation. Capital, like the "blood" of an enterprise, is the premise of its survival and development. The establishment, establishment, daily production and operation, purchase of equipment and materials and other factors of production need certain funds, and more investment is needed to expand production scale, develop new products and improve technical level. Therefore, the goal of financing is to raise the production funds needed by enterprises in a legal way with low capital cost and moderate financing risk.

The goal of investment. The purpose of enterprise investment is to improve the economic benefits of enterprises through the use of funds. Enterprise investment includes internal investment and external investment needed for enterprise development. Enterprises must effectively invest and operate funds to improve their financial integrity and improve their operating results. The size and financial status of an enterprise's operating results are mainly reflected by three types of indicators, namely, enterprise profitability indicators, capital preservation and appreciation indicators and asset-liability level indicators. Profitability refers to the ability of enterprises to obtain profits through the funds raised by domestic and foreign investment. Investors, creditors and business managers are paying more and more attention to the profitability of enterprises. Only by striving to improve profitability can enterprises improve their economic benefits and achieve the basic goal of financial management. The level of assets and liabilities and solvency reflect the capital structure and the ability to pay various debts. The optimization of enterprise capital structure can improve the profit per share of common stock and protect the interests of investors. Enterprises with strong solvency and good food consumption can enable creditors to recover the principal turnover on time, bring higher economic benefits to enterprises, enable enterprises to develop from bottom to top and protect the interests of employees. Therefore, it is one of the specific goals of enterprise financial management to strengthen the solvency of enterprises while making a good plan for the income and expenditure of monetary funds. The social contribution level of an enterprise is a measure of its ability to create or provide value for the country and society. If an enterprise does not exchange materials and accommodation with the society, it will close down.

The goal of profit and loss distribution. The goal of profit and loss distribution is to correctly handle the relationship between accumulation and consumption, current interests and long-term interests, and enterprises and all aspects of economic interests according to national regulations and the needs of enterprise development, so as to maintain the realization of good profit and loss distribution goals of enterprises and lay the foundation for enterprises to improve social and economic benefits.

The financial management goal of an enterprise is by no means a single goal, but a reasonable combination of target groups, and the continuous improvement of enterprise value can maximize wealth.

In addition, it should be pointed out that enterprises should correctly handle the relationship between improving economic benefits and fulfilling social responsibilities. Enterprises must fulfill their social responsibilities in the process of pursuing their own economic benefits. First, we must ensure product quality and provide after-sales service, and we must not pursue corporate profits by unfair means. The second is to safeguard the public interest, not to seek the interests of enterprises at the expense of destroying resources and polluting the environment. In addition, it is also appropriate for enterprises to undertake irregular social obligations and invest in social welfare undertakings. Enterprise management will strengthen enterprise management and promote the realization of specific objectives of financial management.