Two copies of self planning for the financial management profession overall goals and ways to achie

Summary. The overall goal of financial management refers to the effective use of funds and resources in the business activities of the enterprise to achieve the financial objectives of the enterprise. The way in which the overall objective of financial management is expressed can be discussed from the following aspects:

1.Profit Maximization Goal: This is the traditional financial management goal, that is, the enterprise maximizes profits by increasing sales revenue, controlling costs and managing the balance sheet in business activities.

Profit maximization goals are usually expressed in terms of financial ratios (e.g., profit margins, yields, etc.) to evaluate the performance of a business. 2.Shareholder Wealth Maximization Goals:

This is the goal of modern financial management, emphasizing that enterprises should create maximum value for shareholders. The goal of maximizing shareholder wealth is usually expressed in terms of the company's market capitalization or **** to evaluate the performance of the enterprise. 3.

Market Share Maximization Goal: This is part of the company's competitive strategy to expand market share and increase revenue by improving the quality and efficiency of products and services. Market share maximization goals are often expressed to evaluate a company's performance through metrics such as market share and sales.

4.Cash Flow Maximization Goal: This is an important goal of business operations, that is, to ensure that the business has sufficient liquidity to meet its day-to-day operations and future investment needs by effectively managing cash flow.

The cash flow maximization goal is usually expressed in a way that evaluates the performance of a business through financial statements such as cash flow statements.

Style. A representation of the overall objectives of financial management.

A representation of the overall objectives of financial management.

Style. A representation of the overall objectives of financial management.

Style. A representation of the overall objectives of financial management.

Style. A representation of the overall objectives of financial management.

Objectives of Financial Management:

1) Profit Maximization Goals:

The goal of profit maximization is to assume that under the condition that the expected return on investment is determined, the financial management behavior will develop in a direction that is conducive to the maximization of corporate profits.

2) Maximizing shareholder wealth:

The goal of maximizing shareholder wealth refers to the goal of maximizing shareholder wealth in the financial management of an enterprise.

In a listed company, shareholder wealth is determined by the number of shares it has and the market. When the number of ** is constant, **** reaches the highest, and the shareholder wealth reaches the maximum.

3) Enterprise value maximization goal:

Enterprise value is the market value of the enterprise, which is the present value of the estimated future cash flows that the enterprise can create.

The basic idea of the goal of maximizing the interests of stakeholders is to ensure the long-term and stable development of the enterprise, and to emphasize the satisfaction of the interests of various interest groups led by shareholders in the value appreciation of the enterprise.

There are three types of understanding of financial management objectives:

1) Profit maximization. Profit represents the results of the economic activities of the enterprise, the more profits, the more the wealth of investors increases, so the pursuit of profit maximization is the goal of financial management.

2) Maximization of capital gains (or maximization of earnings per share). The return on capital is the ratio of net profit to equity capital (earnings per share is the ratio of the net profit of a joint-stock company to the number of common shares outstanding), which shows the relationship between the output and input of the enterprise, and can explain the benefit of capital investment.

3) Maximizing corporate value (or maximizing shareholder wealth). The so-called enterprise value refers to the present value of the investor's remuneration, that is, the cash flow attributable to the investment equity in a certain period in the future, and the reconsideration of the cost of capital considering the return rate of the risk source insurance. Enterprise value shows the ability of the enterprise to bring future economic benefits to investors, and only when the enterprise value increases, investors can make long-term and stable profits.

Legal basis

General Principles of Corporate Finance (2006 Revision).

Article 8 Enterprises shall implement a financial management system with clear ownership of capital, clear financial relations, and compliance with the requirements of the corporate governance structure.

Enterprises shall establish effective internal financial management levels in accordance with relevant state regulations. The corporate group company shall determine its own internal financial management system.

1.Profit Maximization Basic view: Profit represents the newly created wealth of the enterprise, and the more profit it has, the more the wealth of the enterprise increases, and the closer it is to the goal of the enterprise Disadvantages:

The first is that the time value factor of profit acquisition is not considered, this year's 1 million and next year's 1 million is obviously not at a point in time It is difficult to make a correct judgment, the second is that the relationship between the profit obtained and the invested capital is not considered, the 1 million yuan profit earned by investing 50 million yuan of capital and the 1 million yuan profit earned by investing 60 million yuan of capital is compared, if you only look at the profit, the contribution of these two to the enterprise is the same, but if you consider the investment, it is obviously not the same. The third is that the relationship between the profits obtained and the risks assumed is not considered, for example, if the same investment of 1 million yuan and the profit of 100,000 yuan this year, one enterprise is all converted into cash, and the other enterprise is all accounts receivable, and there may be bad debt losses that cannot be recovered, and the risks of these two are obviously different.

2.Earnings per share maximization Basic view: The company's profits should be considered in conjunction with the capital invested by shareholders, and the earnings per share should be used to summarize the financial management objectives of the enterprise, so as to avoid one of the shortcomings of the "profit maximization" goal Disadvantages:

This target still does not take into account the time value factor of earnings per share acquisition, and in addition, it still does not take into account the risk Advantages: The shortcomings of the profit and capital investment obtained in the "profit maximization target" are solved.

3.Maximizing corporate wealth (value) Fundamental view: Increasing shareholder wealth is the goal of financial management Advantages: This goal addresses all three deficiencies in the "profit maximization" goal Disadvantages: Difficult to measure.

4.Maximization of related interests Basic viewpoint: Consider not only the interests of creditors, shareholders and other relevant parties, but also consider the factors such as employees, customers and corporate social responsibility, and strive to maximize the interests of all parties.

The overall objective of financial management is aThe goal of maximizing corporate value is bai

The goal of financial management is the ultimate goal of all financial activities, and it is the foundation and destination of all financial activities carried out by DAO enterprises. According to the theory and practice of modern enterprise financial management, the most representative financial management goals include profit maximization, profit per share maximization, and enterprise value maximization. The maximization of enterprise value takes into account the time factor of obtaining cash returns, can overcome the short-term behavior of enterprises in the pursuit of profits, and scientifically considers the relationship between risk and reward, which is a more reasonable financial management goal.

1. Maximize output value.

2. Maximize profits.

3. Maximize shareholder wealth.

4. Maximize enterprise value.

First, there are several types of financial management goals.

The investment objectives of a business can be divided into different types.

1) Profit maximization.

2) Maximizing shareholder wealth:

3) Maximizing enterprise value.

4) Maximize the value of stakeholders.

a.The goal of maximizing corporate value is correct.

Financial management objectives.

Profit maximization: In order to maximize profits, enterprises must pay attention to economic accounting, strengthen management, improve technology, improve labor productivity, and reduce product costs. These measures are conducive to the rational allocation of enterprise resources and the improvement of the overall economic efficiency of enterprises.

Problems:

1) Failure to consider the time of profit realization and the time value of funds;

2) failure to consider the issue of risk;

3) does not reflect the relationship between the profits created and the capital invested;

4) It leads to the tendency of short-term financial decision-making of the enterprise, which affects the long-term development of the enterprise.

Maximizing Shareholder Wealth:

1) risk factors are taken into account;

2) To a certain extent, it can avoid the short-term behavior of enterprises pursuing gears;

3) For listed companies, it is convenient for assessment, rewards and punishments.

Problems:

1) It is usually only applicable to listed companies, and it is difficult for non-listed companies to apply;

2) The stock price is affected by many factors and cannot fully and accurately reflect the financial management status of the enterprise;

Maximizing corporate value:

1) The time to remuneration is taken into account and measured using the principle of time value;

2) the relationship between risk and reward is considered;

3) Put the long-term, stable development and sustainable profitability of the enterprise in the first place, and overcome the short-term behavior of the enterprise in the pursuit of profits;

4) Replace ** with value, which effectively avoids the short-term behavior of the enterprise.

Problems:

1) The value of the enterprise is too theoretical and difficult to operate;

2) For non-listed companies, only a special appraisal of the enterprise can determine its value, and when evaluating the assets of the enterprise, it is difficult to be objective and accurate due to the influence of the valuation standards and valuation methods.

Legal basis

The People's Republic of China Gongmin Qing Justice".

Article 163 stipulates that when a company issues corporate bonds, the board of directors shall formulate a plan and the shareholders' meeting shall make a resolution. The issuance of corporate bonds by a wholly state-owned company shall be decided by an institution authorized by the state for investment or by a department authorized by the state.