What are the concepts, principles, contents, and objectives of financial management?

Financial management is characterized by the following aspects.　(A) financial management is a comprehensive management work enterprise management in the implementation of the division of labor, decentralization process has formed a series of professional management, some focus on the management of the use of value, some focus on the management of value, some focus on the management of labor factors, some focus on the management of information. The development of social economy requires that financial management is mainly the use of value form of management of business activities. Through the form of value, all the material conditions of the enterprise, the business process and business results are reasonably planned and controlled to achieve the purpose of continuous improvement of enterprise efficiency and wealth. Therefore, financial management is an independent aspect of enterprise management, but also a comprehensive management work.　(B) financial management and all aspects of the enterprise has a wide range of links in the enterprise, all the income and expenditure activities involving funds, are related to financial management. In fact, the internal departments of the enterprise and the phenomenon of funds do not occur is rare. Therefore, the tentacles of financial management, often extended to all corners of the business operations. Each department will be linked to the financial department through the use of funds. Each department should also be in the rational use of funds, saving funds and other aspects of expenditure to accept the guidance of the financial sector, subject to the constraints of the financial system, in order to ensure the improvement of the economic efficiency of enterprises.　(C) financial management can quickly reflect the production and management of enterprises in the enterprise management, decision-making is appropriate, whether the operation is reasonable, whether advanced technology, production and marketing is smooth, can be quickly reflected in the enterprise financial indicators. For example, if the enterprise produces marketable products, good quality and reliable, can lead to the development of production, to realize the production and sales, capital turnover accelerate, profitability enhancement, all of which can be quickly reflected through a variety of financial indicators. This also shows that the financial management work has its independence, but also by the constraints of the whole enterprise management work. The financial department should be through their own work, to the leadership of the enterprise timely notification of changes in financial indicators, in order to bring the work of all departments into the track of improving economic efficiency, and strive to achieve the goal of financial management. The basic viewpoints of various objectives of financial management and the evaluation of advantages and disadvantages related to financial management objectives 1. profit maximization Basic viewpoint: profit represents the newly created wealth of the enterprise, and the more profit indicates that the more the wealth of the enterprise is increased, and the closer it is to the enterprise's objectives Disadvantages: firstly, it does not take into account the factor of the time value of the profit obtained, and it is difficult to make a correct judgment on the point of time when it is clear that 1 million dollars of this year and 1 million dollars of the next year are not in a time. It is difficult to make a correct judgment, the second is not to consider the relationship between the profit obtained and the capital invested, with 50 million yuan of capital invested to earn 1 million yuan of profit compared with 60 million yuan of capital invested to earn 1 million yuan of profit, if you look at the profit alone, the two contributions to the enterprise is the same, but if you take into account the inputs are obviously not the same, and the third is not to consider the relationship between the profit obtained and the risk assumed, the closer to the enterprise's goals. The third is not considered the relationship between the profit and risk, for example, the same investment of 1 million yuan, this year's profit of 100,000 yuan, an enterprise is all converted to cash, another enterprise is all accounts receivable, and may occur bad debt losses can not be recovered, the risk of these two are obviously not the same 2. Maximize the earnings per share Basic point of view: should be the enterprise's profits and shareholders invested in the capital should be linked to the consideration of the earnings per share to summarize the enterprise's financial management, the earnings per share is the same as the profit per share. Earnings per share should be used to summarize the financial management objective of the enterprise, thus avoiding one of the defects of the "profit maximization" objective. Disadvantages: This objective still does not take into account the time value of earnings per share, and, in addition, still does not take into account the risk. "Maximization of corporate wealth (value) Basic point of view: increasing shareholder wealth is the goal of financial management Advantages: this objective solves all three shortcomings of the "profit maximization" objective Disadvantages: difficult to measure 4. Maximization of related interests Basic point of view: Maximize the interests of not only creditors, shareholders and other related parties, but also employees, customers and corporate social responsibility, and strive to maximize the interests of all parties. Principle 1: Risk-benefit trade-off - additional risks need to be compensated by additional benefits Principle 2: Time value of money - a dollar today is worth more than a dollar in the future Principle 3: Measurement of value takes into account cash rather than profits Principle IV: Incremental cash flow - only the increment is relevant Principle V: There are no exceptionally profitable projects in a competitive market Financial Management Module[1] Principle VI: Efficient capital markets - markets are responsive and prices are reasonable Principle VII: Agency problems --Principle VII: Agency Problems - managers and owners do not have the same interests Principle VIII: Taxation affects business decisions Principle IX: Risks are divided into different categories - some can be eliminated through diversification, others cannot Principle X: Ethical behavior is about doing the right thing, and there is ethical confusion everywhere in the financial industry. Ethical behavior is about doing the right thing, and there is moral confusion in the financial industry.