Our analysis of financial management theory and research

Summary: changes in world Economic development theory of Financial Management a new challenge. Our existing Financial Management theory can not meet the needs of Financial Management practices, the guiding role of theory in practice than the lag by China and Western Financial Management theory more, talk about our future Financial Management theory and Research directions.

Keywords: Western; financial management; comparison; Research

A country's financial management theory of the basic content

Financial management theory and Research in the first phase of our country's financial management theory and Research on the nature of corporate finance, financial accounting of the real, objective basis for evaluation index system, national accounting and professional accounting and public relations and accounting of funds theory of the socialist , cost theory, the relationship between the financial and accounting issues has made great progress.

Financial management theory and Research in the second phase of our country's financial management theory and research from the following aspects, and has made great achievements:
(1) to continue the discussion of financial nature, the presentation of financial nature "theory of value distribution", "kinetic theory of value", "return on investment and capital," and so on.

(2) on the financial functions of the two proposed financial functions, three functions, four functions, the six functions of views.

(3) on the financial control mechanisms.

(4) on financial subjects. Proposed as the subject of corporate finance, should be the business itself.

(5) on the financial management objectives.

(6) on financial management assumptions.

(7) financial management from the perspective of equity research.

(8) countries on macro-financial or financial, will the state as owner of state capital and as a community manager has the rights and responsibilities of different Economic theories.

(9) on the system of financial theory, is to discuss the composition of system of financial theory.

(10) on budget management.


2 West, the basic content of the theory of financial management

Theory in the modern Western financial management before the 1980s generally include the following:
(1) efficient market theory describes the validity of the information on the financial markets, stock prices that can effectively reflect all relevant information.

(2) portfolio theory. This theory is given on the portfolio return and risk measurement approach.

(3) capital asset pricing model. The theory used for stocks, bonds and other securities the value of assessment.

(4) arbitrage pricing theory. The theory proposes a theory of asset pricing model than the more general pricing theory and methods, is the expansion of the capital asset pricing model, the pricing of assets from a single-factor model developed into a multi-factor model, This will better fit the complex reality of the situation.

(5) capital structure theory is equal to the value of the debt-free enterprise value plus debt liabilities arising from tax-saving benefits, and tax-saving benefits of how much the level determined in accordance with income tax when the tax saving benefits and costs of financial crisis, agency costs balance each other, is the company's optimal capital structure.

(6) option pricing theory option pricing options, check out the study is to determine the price side compensation issues.

(7) dividend theory. Dividend theory is about how enterprises to adopt the theory of dividend policy, dividend irrelevance and the dividend divided on two related arguments.


3, comparison of Western financial management theory

From the above overview, you can clearly see, the differences between Western financial management theory, which is reflected in:
Western Financial management theory and the object of study is a financial activity itself, focused on financing and investment behavior (mainly on the market) and the dividend distribution, research emphasis on financial management practices. Contents of the study is how to carry out such financial activities, with which the law , how to do better. our object of study of financial management theory and financial activities primarily in the financial relations and financial concepts, research emphasis on the financial management of the superstructure. the main contents of the study are: what should be the financial relationship; What should be the establishment of financial management concepts should be expressed and mutual relationship, and so on.

From a financial study of the objective environment, since the founding of our country's financial study focused on the financial relations, while the Western countries do not focus too much on the financial research company's financial relations, the recent U.S. accounting fraud, the impact of the country's Economic relations, This has led Western scholars to re-examine its system of construction. The current Economics, including Nobel Prize, including all kinds of Economics, research and solve major economic operation of its practical problems and rarely involve socio-economic system, which with its current financial theory is the same; and before the establishment of the capitalist system and establish the beginning of economics, the main discourse is the economic relations and economic systems.

From the financial activities of the practice, because changes in China's economic system and the construction, unstable and chaotic economic activity, which makes our financial theory can not, as Western researchers as for the consistency of financial activities study, which is in the West study and content of financial differences, another reason.

Financial management theory and research from the premise and the inertia terms, the Western development of the theory of financial management combined with its tight economic and financial development of the theory, its economic and financial theory complement each other, in harmony; This is the Western financial theory necessary prerequisite for the development, but also other the development of any country in financial theory necessary prerequisite. China's economic theory and economic theory in different Western First of all, our main focus on traditional economic theory, classical Marxist political economy, started to study the social political and economic relations; followed by the use of traditional economic theory The basic macro and qualitative analysis, few microscopic and quantitative studies.

From research methods to see, more to the Western financial theory using empirical methods, my study of financial theory is completely standard research methods. Links to free download http://www.hi138.com 4 the future of our country's financial management the direction of theoretical research

(1) research, the current theory of China's financial management of financial relations between the research is necessary and should continue, but there should be a considerable part of the power transfer to study up on the financial practices, so that our financial management theory and practice more integrated, better guide the reality of financial activities, explain and predict the function to play in fact, there are already many researchers focus on the study of financial practices, such as the corporate research budget is one example.

(2) research methods, the need to standardize the study during the same time, with greater effort to carry out empirical research to enhance the reliability of the study, why empirical research important? The key is that it is built on top of a more reliable basis , similar to natural science research methods, with verifiable. It should be said, no financial management we are not empirical studies, but the amount of study and research is smaller. With the deepening of China's reform and opening-up policy, more and more carried out with the financial conditions of empirical research, large-scale promotion of this approach should not be too late.

(3) financial management by adding quantitative method as operations research, mathematics and other basic tools for financial management support for the development of science, so as to corporate finance to establish a more scientific and rational financial model provides quantitative support, such as quantitative prediction, rolling budget, risk and uncertainty decision making and decision-making, especially when cross-border capital management goals are determined, the financial management is necessary to use value-based management approach that will break down business objectives, quantify, and make plans to achieve business objectives for enterprise cross-border investment and financing, and optimization of cross-border flow of capital stock, foreign exchange risk prevention and control of financial accounting to provide useful information in addition, to prevent risks, improve efficiency and financial control methods include human capital, knowledge capital indicators, including The financial analysis should also be taken seriously enough to meet the new environment for the financial management requirements.

(4) to increase the implementation of financial budget management in market economy, enterprises must overcome in the past in the management of the existence of negative psychological dependence, according to the changing market conditions, from the corporate strategic objectives, the financial budget management. financial budget management through the preparation of the financial budget tables to regulate and correct the economic behavior of enterprises, the internal departments, production and management of all aspects of organic link, its purpose is to seek balance the budget to balance development, and enable enterprises to conduct more scientific economic and more reasonable, in order to achieve financial goals.

(5) instead of recommended capital funding of capital is the advance of commodity production and circulation of money, it advances from the money funds, through the use, consumption, income, distribution of several stages and advance to the money back to the original form, and bring money in the process of value-added of capital and the main difference between the funds: First, capital is able to bring value-added value, added value is the inherent nature of capital requirements; and capital funding only after becoming a value-added Diao . Second, the process of social reproduction as capital property of the material performance of the currency, its extension is too wide.

(6) will further extend the concept of money. With regard to funds, such definitions: "money is the monetary value of the national economy performance materials"; "money is the process of social reproduction in the form of the value of goods movement," etc. These two statements Although slightly different, but the material properties of the material form of existence as the capital is the same as the content of this With the growing importance of intellectual property in China, knowledge and talent in the economic life of the increasingly prominent in economic activities, there is a lot to patents, proprietary technology, goodwill, trade secrets, human capital investment shares of the phenomenon, if we then also the concept of limited funds is the property of the material value of the currencies, and capital as the financial management of the object, it can not contain above, which is clearly inconsistent with the objective economic reality, but also the lack of explanatory power, so here that the funds must be to expand the content, we have funds defined as "the national economy, human resources, material resources, the monetary value of performance" so, in the objective economic life of the patents, proprietary technology, goodwill, trade secrets, the phenomenon of human capital investment shares can be solved. objective economic changes in the environment and causing changes in the financial management of funds target areas to expand, and the concept of a theoretical breakthrough funds to promote the further expansion of the financial management of the object.

(7) risk management has become an important content, whether financing or investment, must pay attention to risk management in finance, sources of funding is increasing, the species will be colorful, especially venture capital funds will be the main sources of financing. corporate financial managers should first identify the various risks faced by, and then to estimate the various risk factors and evaluation of qualitative and quantitative analysis methods, such as sensitivity analysis, breakeven analysis, probability analysis method to determine the different risk exist, it is estimated the size of the risk and future trends, combined with their own capacity, comparison, analysis, weighed the pros and cons, choose the best option to achieve greater risk-less return, and take a series of prevention, preservation, compensation measures.


References
[1]  WANG Gui-zhi, Zhu Hongyou Financial management of the new international dynamic [J]. Forest Engineering, 2004, (3).

[2]  Huang Jubo the new Chinese business history of development of financial management [M]. Beijing: Economic Science Press, 1996.

[3]  Yang Shue. Financial Management [M]. Beijing: Economic Science Press, 2008, (1).

[4]  Liu Zhiyuan, Senior Financial Management [M]. Shanghai: Fudan University Press, 2007, (8).

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