Deviation between financial management theory and practice and its countermeasures

Deviation between financial management theory and practice and its countermeasures

With the rapid development of economy, the theory and practice of financial management in China have deviated. This paper analyzes the problems and causes of the deviation between the theory and practice of enterprise financial management in China, and puts forward the corresponding solutions.

Keywords theory; Practice; Financial management; Countermeasures

First, an overview of financial management theory

1. financial management goal financial management goal refers to the goal of becoming friends by organizing financial activities and handling financial relations in a specific financial environment. It determines the basic direction of enterprise financial management. Clarifying financial management objectives is the requirement of perfecting financial management theory and the necessary condition for doing financial work well. At present, there are several theories of financial management objectives in China: maximizing enterprise profits, maximizing shareholder wealth and maximizing enterprise value.

2. Financial management methods Financial management methods are various technologies and means used in financial management activities in order to achieve financial management goals and complete financial management tasks. There are many methods of financial management, which can be classified according to various standards: (1) According to the specific content of financial management, it can be divided into fund raising management method, investment management method, working capital management method, profit and its distribution management method; (2) According to the links of financial management, it can be divided into financial forecasting methods, financial decision-making methods, financial planning methods, financial control methods and financial analysis methods; (3) According to the characteristics of financial management methods, it can be divided into qualitative financial management methods and quantitative financial management methods.

Second, the deviation of financial management theory and practice

1. The view that financial management objectives and practices deviate from the current enterprise value maximization has been unanimously recognized by most Chinese and foreign scholars, and has become the mainstream view in choosing financial management objectives in theoretical circles. However, after in-depth investigation, the conclusion cannot be supported. Obviously, this is worth pondering. Theory can't guide practice, which shows that there is something wrong with theory.

2. Financial management methods deviate from reality. At present, a large number of hypothetical financial management methods are introduced into the financial management textbooks of colleges and universities in China. These methods are mature in theory, but they cannot be used in practice. First, the basic model of economic purchase. Enterprises must meet the following conditions before they can use the basic model of economic purchase volume: they can replenish their inventory in time: the inventory arrives in a centralized way, not one after another; No shortage is allowed, that is, there is no shortage cost: the inventory demand is stable and predictable; The unit price of inventory remains unchanged; The unit variable cost of each order remains unchanged: the unit storage cost of inventory remains unchanged; Sufficient cash will not affect the purchase of goods because of cash shortage; Sufficient inventory supply: it will not affect others because it is not available. However, these assumptions are difficult to appear in practice, so the basic model of inventory economic batch is difficult to apply in financial management practice. Second, inventory model and stochastic model. Two mathematical models to determine the ideal cash balance are inventory model and stochastic model. Both inventory model and stochastic model are based on the free transfer of cash and securities, but the free transfer of cash and securities is not only in China, but also abroad. Third, the capital asset pricing model. The application of capital asset pricing model must conform to many assumptions, which do not exist in financial management practice. However, at present, many financial management textbooks in colleges and universities use capital asset pricing models, such as the calculation of common stock capital cost, retained earnings capital cost and capital structure decision. Examples include: calculation of sustainable growth rate, efficient market hypothesis, MM theory, calculation of cash flow present value, financing decision-making method, etc. If you study the theory of financial management, the above-mentioned series of financial management assumptions or methods are understandable. However, if these contents are introduced into the financial management textbooks of undergraduate and junior colleges in colleges and universities, they will not only have no guiding role in China's financial management practice, resulting in the disconnection between financial management theory and practice, but also bring students a lot of confusion and make them feel empty and abstract.

3. Deviation between content and practice of financial management With the change of financial management environment, the content of enterprise financial management is increasing day by day, and a large number of new businesses, new tools and new means appear, which makes the traditional financial management theory strongly impacted and challenged. For example, under the background of economic globalization, the frequency and amplitude of market price fluctuations have obviously increased, so it is necessary to avoid the price risk in the international market, increase the market scale, intensify the competition among enterprises, and make enterprises face greater operational risks such as interest rate risk and exchange rate risk; The relaxation of financial control further promotes the competition among enterprises, forcing protected industries to improve efficiency or transfer their resources to more efficient places; The asymmetry of effective tax rate provides the impetus for enterprises to avoid tax reasonably through targeted structured arbitrage. There are many new things like this, but there is no corresponding financial management theory to explain, guide or predict them.

Three, the coordination of financial management theory and practice deviation countermeasures

1. Reasonable selection of financial management objectives In order to keep the actual selection of financial management objectives consistent with theoretical research, certain principles must be implemented when selecting objectives, and the selected objectives should not deviate from the enterprise objectives, but also reflect their own characteristics.

(1) The principle of determining financial management objectives should be to choose financial management objectives with appropriate logic, be consistent with financial management subjects, give consideration to various interests, reflect the nature of disciplines, have unique financial management objectives, serve enterprise objectives, and contribute to the construction of financial management theoretical system. When choosing financial management objectives, we should consider the reasonable integration with other elements.

(2) The reasonable choice of financial management objectives is based on the principle of determining financial management objectives. The author thinks that we should break the conceptual misunderstanding that has always existed in the study of financial management objectives and fully embody the content of financial management discipline. Financial management objectives can be defined as two levels: ultimate objectives and specific objectives;

The first and final goal. The ultimate goal is the ultimate goal of financial management, which is consistent with the enterprise goal.

The second specific goal. The specific goal is the goal that should be achieved in various activities of financial management. The goal of financial management based on this should be smooth cash flow. The reason why cash is used here instead of capital is because the word capital often brings controversy with the word capital, and cash does not have this problem.

2. Continuously improve financial management methods The method system of financial management is not fixed, but develops with the continuous development of financial management practice. According to the ever-changing financial management practice, it is an important task to summarize and improve the financial management method system.

The change of financial management environment poses a new challenge to China's financial management methods. We must constantly establish and introduce new financial management methods and improve the system of financial management methods according to the new situation.

3. Continuously expand the content of financial management. The development of financial management theory and practice in China has gone through three different stages. With the establishment of modern financial management theory, the concept of financial management in China is constantly updated, the function and content of financial management are further changed, and the method system of financial management is improving day by day. In the new period of China's socialist market economy, financial management presents a diversified structural system. With the implementation of enterprise financial regeneration strategy, it not only reduces labor costs and improves work efficiency, but also brings a series of new changes to enterprise management. In order to meet the needs of enterprise reform, it is imperative to add new financial management content.

4. Financial management teaching materials suitable for China's national conditions should be compiled. As a substantive management activity, financial management is deeply influenced by culture. The research of cross-cultural management proves that even in the era of economic globalization, management methods will show great differences due to different national cultures. Therefore, the study of China's financial management should be based on our culture and fully investigate and analyze our cultural factors. At the same time, we should also adapt to the political, economic, cultural and legal environmental factors in China. Therefore, it is necessary to pay attention to the background and influence of enterprise financial management in China, embed the financial management theory into China's social structure, and analyze the interactive relationship between enterprise financial management and social structure.

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