Basic characteristics of enterprise financial management objectives

The goal of enterprise financial management depends on the goal of enterprise survival and development, and the two must be consistent. Enterprise financial management objectives should have the following four characteristics:

(1) financial management objectives are hierarchical;

(2) financial management objectives are diversified;

(3) financial management objectives are relatively stable;

(D) financial management objectives are operational.

factors affecting the financial management objectives of enterprises

the determination of enterprise objectives lays the foundation for the determination of financial management objectives. However, the enterprise as a contract is the result of repeated games between the parties to the contract, which must reflect the interests of all parties to the contract, and any damage to the interests of any party may lead to the dissolution of the enterprise. Therefore, the stakeholders related to the enterprise must be considered before determining the financial objectives of the enterprise. The above-mentioned principle of system structure thinks that structure is the internal connection and organization mode of various elements of material system, that is, structure is a relatively stable way, order and strength in the interaction of various elements of the system. The principle of environmental dependence of a system holds that the system exists in a certain environment, and the system and the environment must maintain the exchange of material, energy and information in order to maintain their own lives. There are three main interest groups that affect financial objectives:

1. Business owners include the government. The owner's influence on corporate financial management objectives is mainly carried out through the shareholders' meeting and the board of directors. Theoretically, major financial decisions of an enterprise must be voted by the shareholders' meeting or the board of directors. The appointment and removal of enterprise managers and financial managers are also decided by the board of directors, with the purpose of enhancing the viability of enterprises and protecting the rights and interests of owners themselves. In addition, the government, as an administrative agency, participates in the profit distribution of enterprises in the form of taxes because of the public services it provides. In order to attract more investors, enterprises must achieve better economic benefits.

2. Creditors of the enterprise. After lending funds to enterprises, creditors will generally take necessary supervision measures to ensure the timely recovery of principal and interest. Therefore, creditors must require enterprises to use funds for the purposes stipulated in the loan contract or for more effective and legal purposes, and require enterprises to maintain good solvency.

3. Enterprise employees. Enterprise employees include ordinary employees and enterprise managers, who have provided intellectual and physical labor for the enterprise and will inevitably demand reasonable remuneration. Employees are the direct creators of enterprise wealth, and they have the right to share the profits of the enterprise in order to restore their physical and mental strength and create more wealth for the enterprise. It can be seen that the interests of employees are closely linked with the interests of enterprises. Therefore, when establishing the financial management objectives of enterprises, the interests of employees must be considered, and in socialist countries, the interests of employees should be given priority. In addition, there are other interest groups, such as suppliers and consumers, which affect the financial management objectives of enterprises.

the choice of financial objectives of Chinese enterprises

In China, the public ownership economy is dominant. As a part of the economy owned by the whole people, the goal of state-owned enterprises is to increase the wealth of the whole society. Not only economic benefits, but also social benefits; While developing the enterprise itself, consider the impact on social stability and development; Sometimes even for the sake of national interests, it is necessary to sacrifice some corporate interests. Moreover, China's securities market is in its infancy, and it is difficult to find a suitable standard to determine "shareholders' rights and interests". It is neither reasonable nor realistic to take "maximizing shareholders' rights and interests" as the financial management goal. It is more scientific to take the maximization of enterprise value as the financial management goal.

However, taking the maximization of enterprise value as the goal of enterprise financial management, how to measure it becomes a problem. For this reason, there are several popular sayings, among which "discounted value of future enterprise value return" and "asset evaluation value" are representative. These two methods are scientific, but their concepts are based on a narrow understanding of enterprise value. Enterprises are social, and society is made up of different people. The value of enterprises is not only reflected in the role of adding value to enterprises themselves, but also in the contribution to society, which is reflected in the contribution to the fundamental interests of the overwhelming majority of people. Therefore, the formulation of enterprise financial objectives should not only conform to the objective laws of enterprise financial activities, but also fully consider the actual situation of enterprise financial management to make it practical and operable. Then, the measurement index of enterprise value maximization should take the interests of stakeholders as the starting point.

positioning requirements for financial management objectives of Chinese enterprises [2]

First, financial management objectives should focus on the overall objectives of enterprises. It is an important essential attribute of an enterprise to make profits, that is to say, the production and operation of an enterprise should aim at improving economic benefits, ensuring the preservation and appreciation of funds and avoiding being eliminated in the fierce market competition.

Secondly, the financial management objective should coordinate the interests of all contractual parties.

Thirdly, corporate social responsibility should be fully considered in financial management objectives. The performance of social responsibility by enterprises directly or indirectly affects the survival and development of enterprises, and enterprises must make regular efforts in financial management activities.

Orientation of financial management objectives of Chinese enterprises [2]

Enterprises are the main body of the market and naturally the main body of financial management, and financial management objectives should be the action objectives of financial management subjects. The realistic choice of the financial management goal of Chinese enterprises should be to maximize the wealth of stakeholders under the leadership of shareholders. Its connotation is that the rights and interests of investors in a balanced state develop together with the rights and interests of other stakeholders, so as to achieve the balance between economic goals and social goals in enterprise or enterprise financial management. This is the rational choice of enterprise's financial management goal, and it is also the financial management goal that adapts to China's national conditions. This positioning not only fully embodies the rights and interests of owners, but also helps to protect the interests of creditors, operators and employees.

The capital invested by enterprise owners is long-term and cannot be taken away at will. The owners perform the most obligations and bear the greatest risks, so they should enjoy the most rights and rewards. Maximizing the value of owners' rights and interests can fully protect owners' rights and interests, which is an recognition of the equality of owners' rights and obligations. The interests of business operators are closely related to owners' rights and interests. If business operators want to get rich remuneration and long-term employment, they must strive to maximize the value of owners' rights and interests in order to win the trust and support of business owners.

The interests of employees in enterprises are also related to owners' equity. If enterprises are not well managed, the maximization of owners' equity value cannot be realized, and the income and welfare of employees will be affected. If the maximization of owners' equity value is realized, the income and welfare of employees will be improved first.

from the perspective of property rights theory, this paper analyzes the goal of maximizing the wealth of stakeholders under the leadership of shareholders. Enterprise equity capital is the owner's long-term investment, and the maximum appreciation of short-term temporary equity capital is not what the owner expects. To maximize the value of owners' equity requires the long-term maximization of the appreciation of equity capital. It is necessary to consider the different present values of equal investment income obtained at different times in the future, reflect the time value of expected investment, and pay attention to the increase of long-term interests of enterprises on the basis of considering the time value of funds. To maximize the value of owners' equity, we should not only consider the immediate profitability, but also focus on the potential profitability in the future. We should not only avoid risks, but also obtain benefits, so as to achieve a balance between risks and benefits, so as to gain a competitive advantage and meet the needs of enterprises' continuous survival and development. The inevitable choice of enterprise financial management goal is to maximize the wealth of stakeholders under the leadership of shareholders. The key to this goal lies in the measurement of the balance point between shareholders and other stakeholders. From the above logical analysis, it can be seen that the transfer of investors' rights and interests is aimed at increasing their overall utility. If decentralization leads to the decline of their overall utility, investors will inevitably take strategies to deal with it until they close the enterprise, which will damage the rights and interests of all stakeholders. Therefore, the equilibrium point between shareholders and other stakeholders is determined by the marginal utility of shareholders, and its marginal utility is positive, showing a downward trend and taking zero as the limit. From this aspect, it also shows that the choice of enterprise financial management objectives should be that the interests of stakeholders under the leadership of shareholders are the greatest.

this financial management goal is more in line with China's national conditions in the primary stage of socialism. Although various economic components coexist in our country, the state-owned economy still occupies the main position. In the state-owned economy, the behavior of enterprises is mainly restricted by national interests and corporate social responsibility, and the maximum wealth of stakeholders meets the requirements of national interests. In addition, the modern enterprise system has a unique and complicated development process in China. Chinese enterprises pay more attention to the interests and rights of employees, emphasize the accumulation of social wealth, and emphasize the interests of all parties, so as to realize the continuous enhancement of economic strength, which is in line with the basic requirements of China's economic reform and construction, while maximizing shareholders' financial wealth is in line with these requirements.

analysis of factors affecting the realization of financial management objectives [3]

1. management decision-making factors

(1) investment projects. Investment projects are the primary factors that determine the rate of return and risk of enterprises. Any project has risks, the only difference is the size of the risks.

And the implementation of scientific and thorough investment plans by enterprises will greatly reduce the risk of the project. Over the years, many enterprises have been in trouble, even went bankrupt, mostly due to investment mistakes. Therefore, it is very important to establish sufficient feasibility demonstration and strict investment decision-making approval system in combination with the actual situation of enterprises.

(2) Return on investment. The total profit of an enterprise does not reflect the wealth of shareholders. Under the premise of the same risk, the wealth of shareholders depends on the rate of return on investment. In order to achieve the goal of economic growth, enterprises often make long-term investment decisions through capital budget when faced with many investment opportunities. Therefore, in order to improve the rate of return on investment, enterprises often use methods such as net present value method, profitability index method and internal rate of return method to evaluate investment projects, so as to improve the quality of financial management decisions and achieve the financial management objectives of enterprises.

(3) capital structure. Capital structure is the proportional relationship between owners' equity and liabilities. If the capital structure is improper, it will seriously affect the benefits of enterprises, increase risks and even lead to bankruptcy. In order to maximize the value of an enterprise, the enterprise usually adopts the indifference point of earnings per share, and at the same time fully considers other factors such as future growth rate and business risk to determine its optimal capital structure and realize the goal of enterprise financial management.

(4) risks. Any decision is future-oriented and there will be more or less risks. When an enterprise makes a decision, it needs to weigh the reward and risk, study the risk and try to control it. The rate of return on risk depends on investors' preference for risk. Usually, enterprises can control and disperse risks by means of diversified investment and financing, so as to maximize the value of enterprises.

(5) dividend policy. Dividend policy refers to how much of the company's surplus is distributed to shareholders as dividends and how much is reserved for reinvestment, so as to maintain the future source of surplus. Dividend policy will affect the financing plan and capital budget of enterprises, and enterprises should choose to implement dividend policies such as residual dividend, low normal dividend and extra dividend according to their actual situation to achieve the goal of financial management.

2. external environmental factors

the external environment of an enterprise is an external constraint that is difficult to change in financial decision-making of an enterprise, which will have a great impact on the realization of financial management objectives of an enterprise.

therefore, enterprises should adapt to the requirements and changes of these external environments more.

(1) legal environment. The financial activities of enterprises, whether financing, investment or profit distribution, must have economic relations with the outside of enterprises. Under the condition of market economy, more and more economic relations and economic activities are specifically regulated by law. Financial personnel should be familiar with these legal norms, complete the functions of financial management under the premise of abiding by the law, and realize the financial management objectives of enterprises.

(2) financial market environment. Financial market is a place where enterprises invest and raise funds, and long-term and short-term funds are transformed into each other. It provides meaningful information for enterprises' financial management and is an important basis for enterprises' operation and investment. Enterprises must make full use of and adapt to the financial market to serve the financial management objectives of enterprises.

(3) economic environment. The economic environment mainly includes economic development, government's economic policy, inflation, interest rate changes and market competition, which have great influence on enterprises. According to the fluctuation of economic development, enterprises should correctly foresee and follow the guidance of the government's economic policy, consider external factors such as inflation and interest rate fluctuation, adjust production and operation in time in market competition, improve their adaptability, develop themselves to the greatest extent, and maximize the value of enterprises.

enterprise financial management objective evaluation [3]

1. Profit maximization. Profit represents the newly created wealth of an enterprise, and the more profits, the more wealth newly created by an enterprise, and the closer it is to the enterprise's goal. The defects of this view are more and more exposed to people: first, the time of profit acquisition and the time value of funds are not considered; Second, the relationship between the profit and the amount of invested capital is not considered, and the efficiency of funds is not revealed; Third, the relationship between making profits and taking risks is not considered.

2. Maximize earnings per share. This view holds that the profit of an enterprise should be considered in connection with the capital invested by shareholders, and the financial objectives of the enterprise should be summarized by earnings per share to avoid the shortcomings of the goal of maximizing profits, but it still does not consider the time and risk of obtaining earnings per share.

3. Maximize enterprise value. This view holds that the total value of an enterprise can be maximized on the basis of ensuring the long-term stable development of the enterprise by rational financial management, adopting the optimal financial policy and fully considering the time value of funds and the relationship between risk and reward. Maximizing enterprise value fully considers the influence of time value, risk value and quality difference of capital flow on enterprise assets, so it is the optimal goal of enterprise financial management.

the evolution of enterprise financial management objectives [4]

Generally speaking, an enterprise is essentially a profit-making business organization, and its survival and development are closely related to the profits made by the enterprise. Under the condition of market economy, investors should pursue economic benefits for the enterprise they invest in, but profits can represent the economic benefits brought by the enterprise to investors to a certain extent. Therefore, under the traditional conditions, most enterprises take profit maximization as their financial management goal. Choosing this goal as their financial management goal can make enterprises pay attention to strengthening enterprise management, improve labor efficiency, improve technology and technology, reduce production costs, facilitate the flow and allocation of resources, and continuously improve the economic benefits of enterprises. Therefore, it can be seen that this goal is essentially a reflection of the traditional business philosophy of enterprises. However, taking profit maximization as the financial management goal of an enterprise will produce strong short-sighted behavior, which makes the enterprise only pay attention to the immediate interests and ignore the long-term interests that have a positive impact on the sustainable development of the enterprise, so a new financial management goal-shareholder value maximization has emerged.

Maximizing shareholders' wealth refers to creating the greatest wealth for shareholders through the rational operation of enterprises and adopting the best financial decisions. As we all know, the wealth of shareholders in a joint-stock company is determined by the number of shares owned by shareholders and the market price of the shares. Therefore, taking the maximization of shareholders' wealth as the goal of enterprise financial management can fully consider the time value and risk reward of funds, and to some extent, it can overcome the short-term behavior of enterprises that only pursue immediate interests and make enterprises pay more attention to long-term development. Therefore, it is more reasonable to take this goal as the business pursuit of enterprises in theory. In addition, due to the target ratio