What is the basic concept of financial management?

1, capital structure theory (capital structure)

Study the theory of the relationship between corporate financing mode and structure and corporate market value.

2. Modern modern portfolio theory and CAPM.

Optimal portfolio theory.

3. Option pricing model.

The theory that determines the value or theoretical price of options (stock options, foreign exchange options, stock index options, convertible bonds, convertible preferred stocks, warrants, etc.). ).

4. Efficient Market Hypothesis (EMH).

This paper studies the theory of how securities prices reflect information in the capital market.

5. Agency theory.

This paper studies the agency cost under different financing methods and different capital structures, and how to reduce the agency cost and improve the company value.

6. Asymmetric information theory.

It means that the internal and external personnel of the company have different understandings of the actual operating conditions of the company, that is, there is information asymmetry between the relevant personnel of the company, which will lead to different judgments on the value of the company.

The objective function of enterprise financial management

1, guiding role. Financial management is a management activity of organizing financial activities of enterprises and coordinating financial relations between enterprises and all aspects.

2. motivation. The goal is the source of strength to inspire all members of the enterprise. Only when each employee is clear about the objectives of the enterprise can he arouse the enthusiasm of his work, give full play to his potential ability and try his best to create the greatest wealth for the enterprise.

3. condensation. An enterprise is an organization and a cooperative system. Only by strengthening the cohesion of all members can the enterprise play its role.

4. Evaluation function. The goal is the evaluation standard of enterprise performance and work performance of departments at all levels.