Challenges facing the modern enterprise financial management

Paper Introduction: Financial management is an important part of economic management. With the changes in the financial management of the environment in the financial market, economic structure and the like. Some ideas and content of traditional financial management is also facing new challenges. (A) the impact of changes in financial markets.
Keywords:: financial management, environment, impact, challenges of financial management is an important part of enterprise management, financial management environment with changes in the financial market, economic structure, a number of ideas and content of traditional financial management is facing the new challenge, the traditional economic era to the new economic era that qualitative leap, but also gives us a lot of new issues and new problems need to think about the study, now on the contents of the financial management of change, to talk about some of my shallow understanding.
First, the impact of environmental change on the financial management of any company's financial activities and financial management are expanded under certain circumstances and conditions, and changes of environment of the modern enterprise financial management enterprise financial management must have a significant impact, mainly in the following areas:
(A) the impact of changes in financial markets. With after joining the WTO, China will gradually relax the scope of restrictions on foreign financial institutions and regional access. More and more foreign financial institutions to enter the country, will make China's financial market has undergone a comprehensive and far-reaching changes, showing some new features, which have a significant impact on corporate financing of investment.
(Ii) the economic impact of changes in structure.
First, adjust trade structure. After joining the WTO, China's products enjoy a multilateral, unconditional MFN stable of more than 100 WTO member countries (regions) in which China's multinational enterprises will undoubtedly become more frequent and complex activities, management of globalization It will force all businesses, including financial strategies, including strategies to make major adjustments, prompting businesses must make a new choice of financial strategy. While financial activities of transnational companies will certainly involve a variety of currencies, the occurrence of a large amount of foreign exchange settlement business, combined with the further opening-recurring items and capital projects, foreign exchange risk will further increase, making the business more prominent position in foreign exchange risk management.
Second, the industrial structure adjustment. According to the theory of comparative advantage, a number of WTO on China's existing protected sector and capital and technology-intensive sectors will have a greater impact, and some have a comparative advantage in labor-intensive industries and has economies of scale and mature technology departments are will benefit, this will definitely affect the direction and scale of China's business capital movement, some of the poor asset quality enterprises to accelerate the closure of some enterprises in order to strengthen and reshape their competitive advantage and internal reconstruction, or take mergers and acquisitions, restructuring and other the implementation of the external expansion mode. Divestitures internal refactoring, mergers and acquisitions between companies when capital operation, reorganization and liquidation bankruptcy, etc., when the issue will become an important financial management.
(C) regulations, taxation environmental change. In order to avoid unnecessary conflicts between business partners and friction, WTO member states must abide by a set of rules for trade, settlement, financial and many other aspects involved. As a member of the WTO, to be bound by the same rules, China's current laws and regulations that are inconsistent with WTO rules regulations will gradually be modified. Corporate financial managers if not familiar with the new legal and regulatory environment after such changes may result in financial decision-making mistakes, might lead to unnecessary penalties or litigation, and may even push themselves into the abyss of bankruptcy or hostile takeover.
(Iv) human environmental change. Competition among enterprises will become more intense human resources, Chinese enterprises in the past, 'inexpensive' talent advantage in the WTO mechanism for new talent will rapidly disappear, foreign good working environment and competitive salary treatment, for China's enterprises good financial management personnel will undoubtedly be a great temptation. How to retain good financial management talent, management talent and even attract foreign inflows, and foreign talent to win in this battle, it will become an important topic of corporate financial management and human resource management. In addition, WTO to promote the internationalization of financial enterprises, the quality of financial management put forward higher requirements: In addition to proficiency in accounting, auditing, financial management theory and methods, familiar with the business management of the entire process and the business management of the legal norms , we also need to master and use a foreign language, computer knowledge, a holistic perspective, organizational skills, keen insight on the capital markets, have an open mind and sense of innovation. At present the overall quality of financial management in general is low, improve the overall quality of financial management will become an important task for financial management.
Second, the challenges faced by corporate financial management (a) restrict the property rights theory and system configuration financial resources, exacerbated by the shareholders, a conflict of interest between property managers and employees as a cornerstone of all economic systems, economic behavior of enterprises from the constraints the role of financial management as a corporate management of an economic activity necessarily subject to property rights system. Knowledge economy is built on economical production distribution and use of knowledge and information, and it changed the enterprise configuration structure, the traditional resource allocation structure to plant, machinery and capital as the main content becomes a knowledge-based intellectual capital based resource allocation structure. At this time, the Financial acts as a 'warehouse' effect, and ultimately any 'intellectual capital' to be converted to Finance. And our existing property rights theory and the system is still stuck in the 'two powers of' industrial economy, that is the 'separation of ownership and management,' and it still maintains 'the financial capital of wage labor' logic, Maintenance 'property owners' theory, ignoring the important role of modern economy human capital development of the company, as well as a major factor in the transformation of economic growth patterns and resource contribution. In fact, the existing shareholders of the enterprise market economy have the financial capital of their full ownership and control; managers have full ownership and control over their own knowledge, they can trade their knowledge and ability in the senior labor market; create, receive, use, processing employee information and knowledge technologies in the enterprise to create wealth also plays an increasingly important role. Thus, in the traditional industrial economy to a knowledge economy transition, the modern enterprise is no longer the 'separation of ownership and management,' but financial capital and intellectual capital of these two 'composite contract' between the capital and its ownership, is 'stakeholder' cooperative property. Therefore, the traditional system of property rights theory and the industrial economy, focus only on tangible assets and investment allocation of capital, ignoring the efficient allocation of intellectual capital, focusing funders enjoy residual claims, rejection of intellectual labor and other stakeholders of the Enterprise Surplus The distribution rights, exacerbated by conflicts of interest and contradictory owners (shareholders), managers and employees and other stakeholders of. In this case, the financial staff in a dilemma I do not know who to maximize the benefits to the enterprise financial goals.
(B) the traditional financial management concept has hindered the development of enterprises focusing on the traditional financial management concepts of labor, capital, raw materials and energy and other factors of production, the knowledge and technology as the external factors affecting production, but in the current era of knowledge economy, knowledge, the role of technology to produce more and more. The difference between knowledge and other factors of production that it can be reused, with increasing returns characteristics. In the knowledge economy and society, plays a leading role in the capital is no longer the land of financial capital and industrial society agricultural society, but intellectual capital. Competitiveness and development of power in today's era of enterprises, but depends on the ownership of the enterprise intellectual capital, knowledge becomes the most important capital for economic development. In the traditional concept of financial management, the output of enterprises depends on capital investment, the investor enjoys residual claims, the exclusion of workers remaining distribution rights for the enterprise; in the industrial economy to a knowledge-based economy over the process, information and knowledge of technology and the acceptance, use, processing, creating an increasingly important role in the employee information and technology in the whole process of wealth creation, thus determining the corporate ownership in the era of the knowledge economy is no longer just the home owner's equity in its, but home its 'relevant stakeholders', such as shareholders, creditors and employees. Traditional financial management concepts greatly reduced the enthusiasm of employees, a serious impediment to the development of enterprises.
(C) the existing financial management and the contents were not suited to the era of knowledge economy investment decisions need to factor in the economic growth of the traditional industrial economy is mainly dependent on plant, machinery, capital and other tangible assets, and in the era of knowledge economy, the structure of corporate assets Intangible assets proportion of patents, trademarks, goodwill, computer software, personnel quality, product innovation, knowledge-based will be greatly improved. The theory and content of the current financial management of tangible assets, more detailed management discussion perfect for intangible assets, less involved. In reality, financial management activities, many companies often underestimate the value of intangible assets, used by expanding the plant, equipment and other methods to increase the operating assets, and failing to make use of intangible capital operations. Thus, the traditional financial management theory and content industrial economy has not meet the needs of the knowledge economy era of investment decisions.
(Iv) quality setting most of the existing financial officers of financial institutions seriously hamper the information, knowledge of financial With the advent of the knowledge economy, all economic activities must be fast, accurate and comprehensive information-oriented, digital technology information superhighway will enable enterprises transaction, decision-making information instantaneously, 'media space', 'Internet entity' to make room for economic activity is reduced, which determines the era of knowledge economy, corporate financial managers have a very strong professional knowledge and ability, keen to receive information processing capability, innovation and scientific methods of financial capability; setting corporate financial institutions should be less layers of management and middle management personnel, emphasizing structural innovation, sensitive, efficient and fast characteristics. In China, most of the existing enterprises are dominated by public ownership, setting financial institution into a pyramid, in the middle levels, and lack of innovation and flexibility, and low efficiency; financial management financial management concepts lag, lack of financial literacy, money management behind, Habitually all obey the leadership, lack of initiative to acquire knowledge of science, technology, skills, management, etc., but the lack of innovation and innovation capability. Therefore, some of the more modern financial management advanced methods in the enterprise financial management is a mere formality. All this era of knowledge economy requirements for money managers, financial institutions far, a serious impediment to information, knowledge of financial management process.
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