Explore the development of financial management and innovation

Abstract: Financial Management in the 20th century, has gone from independence to continue to improve, the face of the Financial Management of the environment changes, there will be new trends. The traditional Financial Management in modern financial environment, defects in the analysis, and modern Financial Management, financial goals, financial content, Financial Management and profit distribution and other aspects of showing some new features to a certain degree of exploration.

Keywords: financial management of the environment; Network Finance; globalization of finance; people-financial

A financial management changes in the environment

21st century financial management environment has undergone tremendous changes from the macro-environment, mainly in: Economic globalization is unstoppable; knowledge-based economy in the ascendant; information technology, communications technology and e-commerce to flourish, and so on from the micro-environment to see the main as follows: internal restructuring; merger between the companies and restructuring; the rise of virtual companies, etc., while the changes in every aspect of financial management presents a challenge.

(1) Economic globalization, has a direct impact on the financial management of financial globalization, financial globalization is a double edged sword for companies which make business financing, investment opportunities have more choices, objective on enhancing the value of the business, but from the 1997 Asian financial crisis can be seen in the back of financial globalization is a great risk in financial instruments and derivative financial instruments based on innovation, how to seek opportunities to avoid risks , is the financial management of current and future period of time facing the most important issue.

(2) the rise of knowledge-based economy for financial management, structural changes in the allocation of resources. The allocation of resources based on the traditional structure of plant, machinery, capital structure as the main contents of the allocation of resources into a knowledge-based, knowledge capital based resource allocation structure.

(3) With the development of electronic commerce, the rapid rise of the network of financial e-commerce is a new business model, with the development of electronic commerce, traditional financial management has also evolved to a network of financial era network of the most striking feature of the financial real-time reporting, companies can manage online. network is lured into the financial prospects, but it is the same security problems caused by worrying.

(4) Enterprise Restructuring of the enterprise itself, and even the community have had a huge impact, but also presented a serious financial management challenges, such as: how to reconstruct the internal asset stripping, how the merger between the companies capital operation, how to cross-border mergers and acquisitions for international financial management and financial management of more virtual unsystematic, is still at the exploratory stage.


2 traditional financial management deficiencies

(1) does not support e-commerce. Our traditional financial software with a single currency, single language feature, which for online billing services, accounting, data exchange will have to pass obstacles. In addition, the traditional financial software have the technical background behind because , no network management or support only local network applications, but can not support e-commerce.

(2) can not achieve the financial and operating synergies. Financial and business collaboration, including collaboration within the enterprise, supply chain collaboration, etc. within the enterprise departments, branch offices with customers, suppliers, etc. for each node in the event, production, marketing and other business activities, the process will have a variety of financial information at all times, without the support of network technology, is absolutely impossible for the financial information for quick and reasonable deal, so that financial information is passed to the operating system The time difference increases, is not conducive to production and operations decisions.

(3) the existence of financial information disclosure during the accounting constraints of traditional financial system only after the end of an accounting period in order to obtain financial reports, the network can not meet the age requirements of information users, because: ① a notable feature of e-commerce is fast, if the parties can not access each other's financial information at any time, in the case of insufficient information, the business will inevitably slow down the speed of business decisions, it can not reflect the benefits of e-commerce. ② online trading companies are likely to "virtual company" . "virtual company" with the business needs of the event can be set up at any time, when the business end of the event, or needs adjustment, a "virtual company" may terminate its time of uncertainty there may be a few years, it may be a few days in this case, to conduct the accounting stage is a difficult task, but there is not much practical significance, perhaps in an accounting period has not yet scheduled the end, the company has been dissolved, so the Internet age of information users pay more attention to the real-time financial information, but also in electronic on-line conditions, the financial reports can be immediately generated.

(4) the traditional financial system can not meet the individual needs of users because of the cost of information production and information processing capacity limitations of traditional financial systems are often simply trying to meet the common needs of all users, without or with little regard for their individual needs, for example, In today's knowledge economy, society, business people configured to evaluate the synthesis of an important enterprise standard, some users may have a corporate human resources information needs, but in the traditional financial system, subject to the constraints of cost-effective, The past does not seem very important message not appear in the financial report, while the network of financial, due to lower information costs, financial reports can cover more content, such information can be reflected in the financial report. again who need to know only a part of some users of financial information, such as a small creditors, large creditors can not, as he did in order to reduce the risk of the enterprise to conduct a comprehensive understanding of the situation, he only needs to know about the solvency of the business and credit conditions on can, but in a lot of financial information to extract the small part of the information for him must be a very unEconomical to do, but to provide such a personalized business information in the traditional financial system is obviously impossible of.

(5) lack of international comparability of accounting information, the traditional financial system is too much emphasis on China's accounting system, resulting in China's accounting side of autarky is said that a large domestic companies listed overseas before, in order to make it nearly three years of financial statements comply with the requirements of international investors, hired KPMG firms Diaozhang, that the entire audit last year and a half, a total outlay of 530,000 labor costs by this example we can see the lack of international comparability of accounting information, not only can not meet the needs of investors, the enterprise will be a waste of resources in financial networks, international today, this accounting information can not meet the development requirements of the times.


3 modern financial management, development and innovation

In the 21st century, Economic globalization is unstoppable, the ascendant knowledge economy, information technology, communications technology and e-commerce to flourish, will these environmental changes on the financial management objectives, scope, content and other aspects have a greater impact of modern financial management changes in the following five areas:
3.1 the concept of innovation on financial management 
With the changes in the environment, development of financial management must work closely with the innovation, in particular, the concept of innovation is to promote the development of financial management will be an important factor, according to the 21st century trends in financial management, the concept of innovation is reflected in the following areas : (1) the concept of intellectual capital, knowledge capital, human resources and intangible assets from the two parts .21 century is a knowledge-based economy, knowledge becomes a major resource for Economic development and motivation, intellectual capital and gradually replace the monetary capital and physical capital in the enterprise the important role of knowledge in the knowledge economy performance of the high penetration of traditional industries and the rapid development of high-tech industry, its major impact enterprise financial management is to change the corporate structure of the allocation of resources, financial resources and enrich the content, form knowledge-based intellectual capital-based resource allocation structure of knowledge capital and ordinary capital, compared with more value-added, knowledge capital, the use of means in the ordinary capital of the C and V, respectively of intangible assets and intelligence work, which amplified the use of intellectual capital C + V process is the new inventions, new technologies, new ideas commercialize the process, inevitably create high profits, according to Western scholars estimated that the knowledge resources contribute to economic growth in 20 century, only 5% -20%, and now has reached 60% -80% can be seen, the future financial management will be a knowledge management, business science and technology, organizational management, personnel quality, intangible assets such as knowledge of the content , will be to determine whether the innovation and development of financial management a key factor of knowledge capital raising, training, and physical capital expansion and matching, optimize resource structure, which conforms to the objective requirements of knowledge-based economy.

(2) network of financial concepts .21 century, the flow of information as the core business activities - e-commerce to flourish, will promote the traditional financial management into a new network of financial era is the use of financial networks to build a network of computer systems, financial system, the implementation of the Internet, intranet and e-commerce as the background of the online banking and financial activities of information, it is not only the transaction, decision-making can be done in an instant, greatly improving efficiency, but also to achieve the financial and the operational synergies , optimize the allocation of resources. specifically as follows: ① e-commerce applications, broken borders, distance and time constraints, business through online sales, online billing, online tax, online financial reporting and disclosure of significant financial matters, to the new financial model to carry out with customers, suppliers, banks, investors, government contacts. ② business major financial decisions more dependent on computer systems provide large amounts of data, information, calculation and analytical processing, decision-makers to effectively avoid subjective judgments arising from the failure. ③ corporate working capital management, such as inventory control, accounts receivable management and cash management, financial and e-business models in the network management information system support, to achieve the dynamic management. ④ through internal information exchange, enable enterprises of all business units, Group collaborative work between the companies together, can be more effective resource planning and configuration present in the building and development of China's largest network of financial obstacle is not technology but the concept, many companies importance of investment in fixed assets, neglect or even unwilling to invest in the construction of enterprise information systems, so in the future financial management, financial management of the new emphasis on networking concepts is essential. Links to free download Center http://www.hi138.com (3) the globalization of financial concepts .21 century, as information technology, communications technology and e-commerce's rapid development and wide application of international trade and expanding operations, production, distribution , consumption, and other breakthroughs in the field of border, economic globalization is unstoppable, as the mainstream of world economic development in this new environment, financial management, financial management of the extension to further expand to meet the company's strategic development of the international market demand. the international financing, international investment, transnational business and enterprise in the global competition in the formation of cross-border mergers and acquisitions, became the subject of financial management, a new study.

(4) The financial concept of people in the development of knowledge and technology as the main economic resources and power in the 21st century, human capital has an important value and status of economists Schultz believes that workers have acquired the knowledge and economic value skills, production of technologically advanced countries is causing a huge advantage and an important cause of economic strength from the financial management point of view, each of the specific company's financial activities are done by people, so people have the knowledge, wisdom and ability to apply knowledge to create economic value and the degree of effort will determine the quality of corporate financial results of the activities, so in financial management, to implement people-oriented financial management concepts, to explore the understanding, respect, based on the establishment of Zequan Li combination of effective financial operational mechanism, to give full play to people's initiative, enthusiasm and creativity. people-management is the objective requirements of the knowledge economy, corporate financial activities for the smooth and effective guarantee.

3.2 on the adjustment of financial management objectives 
(1) adjust the financial targets should be adapted to the requirements of modern enterprises. Financial management as a key business management system, its target directly reflect the financial changes in the environment, and changes in the environment need to be adjusted according to the modern theory of the firm view that business is the sum of the multilateral contractual relationship, shareholders, creditors, managers, employees, consumers, suppliers and government and other parties have their own interests, together constitute the checks and balances the interests of business, so the modern enterprise is concluded between the stakeholders " contract net, "and various stakeholders in the businesses to invest in physical capital and intellectual capital (including human capital), access to a single subject can not get benefits of cooperation, they should be co-owned corporate residual claim and control over the formation of a wider range of financial allocation of resources subject.

(2) re-examine the "shareholder wealth maximization 'financial goals. Thus, the targeting of financial management to maximize shareholder wealth, just focusing on the interests of shareholders, while ignoring the interests of other stakeholders, will inevitably lead to conflicts, will not be conducive to enterprise development, especially with the development of knowledge economy, intellectual capital greatly increased the proportion, the proportion of physical capital is relatively lower, such a major change, increasingly shows the status of business owners in the elements of change, from the "shareholders first" to the "stakeholders" into this new concept of property rights, asking people to pay more attention to the interests of shareholders other than the main stakeholders' interests and the interests of society, more attention to human capital and intangible capital to re-examine the traditional "shareholder wealth maximize the "financial goals, establish appropriate financial management in the 21st century requires a new target.

(3) financial management objectives should be defined as "to maximize the interests of stakeholders" in the logic of co-governance, financial management objectives should be defined as "to maximize the interests of stakeholders". Enterprises through financial rational management, fully taking into account and balance the financial interests of stakeholders, to ensure the long-term stable development of enterprises in the enterprise value based on the maximum. different stakeholders of the financial interests of different shareholders expect the effective value of its investment capital to maximize creditor expectations recover the principal and interest to maximize the safety, managers and employees expect their salaries to maximize revenue, public expectations of corporate social responsibility to maximize the contribution of the Government expects companies to maximize the social, etc. It is all stakeholders joint participation, constitute the business interests of checks and balances, and only the enterprise's various contractual relationship between the financial interests are better met, in order to enable enterprises to achieve sustainable development and achieve a virtuous cycle of financial management, the United States to its goal of IBM's as "as employee benefits, benefits for customers, for shareholders," this change and innovation, and conforms to the requirements of economic development in the 21st century, is another breakthrough development of financial management, financial management of the entire contents will have a profound impact.

3.3 content on the expansion of financial management 
At present, the content of the basic framework of financial management is: the objective of maximizing shareholder wealth, the time value of money and investment value at risk based, finance, investment, working capital and profit distribution and other management as the basic content of the framework reflected in the principles and methods of financial management system, under the conditions of market economy a scientific summary of the financial management practices .21 century, with the rise of the knowledge economy, e-commerce development and economic globalization, and other financial management of the environment changes, the existing financial management challenges facing the content. explore how to break the old frame, create a new framework to accommodate the financial management theory and practice of new content, the development of financial management in the face of important issues.

(1) intellectual capital management into the scope of financial management in the industrial economy, the financial capital of the enterprises is the strategic capital, therefore, the financial discipline to study and solve the problem is rational and effective allocation of financial capital, knowledge economy era, intellectual capital and would be a sustainable development of enterprises, the importance of deciding the fate of future strategic capital, therefore, rational and effective allocation of intellectual capital and management, financial management will become an important content of intellectual capital management should include: ① intellectual capital financing, mainly to study how to effectively raise the economy of intellectual capital, physical capital to make it match with the formation of corporate capital structure and a reasonable allocation of resources and effective structure of knowledge in the focus on raising capital from outside, we must also fully attention to the cultivation of intellectual capital within the enterprise, minimize risk and cost of enterprise financing. ② intangible investment. capital structure changes, will lead to changes in the structure of corporate assets, knowledge-based patents, trademarks, goodwill , computer software, quality of talent, organization and management, product innovation and other intangible assets will significantly increase the proportion, in deciding the business development, future earnings and market value of the major intellectual assets, according to statistics, in 1995 the proportion of intangible assets, many U.S. companies has been as high as 50% -60%, so the most important intangible assets in the future and most important business investment decisions object, which will also be the future of the financial management of a difficult problem, research should focus on the recognition of intangible assets, measurement and investment decision-making establishment of indicators and methods. ③ operations intellectual capital, knowledge capital relative to financial capital has a greater value-added. research focuses on the elements of intellectual capital within the enterprise and other financial resources are effectively combined, as well as foreign investment other mode of operation, to maximize the potential of intellectual capital in order to obtain more revenue while further expanding the traditional financial analysis and evaluation index system, a set of evaluation study design business value of intellectual capital indicators, because of intellectual capital management and investment management and corporate strategy linked, and therefore its evaluation should include measurement of knowledge assets, the contribution of the financial indicators of effectiveness and evaluation of intellectual capital on enterprise development contribution of non-financial indicators. Correspondingly, the future balance sheet assets should be invested all the assets of stakeholders, including financial resources and knowledge resources, the interests of the balance sheet should be the interests of all stakeholders, including not only shareholders' interests and the interests of creditors, managers should also include interest, employees' rights and interests of other parties; the same time, the income statement of earnings should also reflect the benefits of stakeholders. ④ distribution of intellectual capital, knowledge capital and financial capital, the owner should be involved as the owner of the distribution of corporate earnings, special needs of owners of human capital involved in the allocation of corporate profits after tax now imposed to give a "bonus", annual salary, stock options, etc., that is, human capital owners in an attempt to tax the distribution of profits. effective development and utilization human intelligence resources important ways and means, is the human spirit of innovation and the cultivation of creativity and motivation to study the human capital within the enterprise to establish profit-sharing system so that the economic interests of managers and employees operating results and business contacts together, is particularly important, such as stock options, the operator's personal interests and long-term development and enterprise value linked to arousing their enthusiasm and creativity, is an effective material incentives. the intellectual capital management as an important part of financial management, financial management trends, but also a whole new field in the theory and practice there are many issues to be studied and improved.

(2) the content of risk management will increase and become an important part of financial management, knowledge economy, e-commerce and the development of economic globalization, the company finance the increased complexity and difficulty, to bear greater risk, the risk investment and risk management will become even more rich content, and its importance in financial management will be further improved. This is mainly reflected in: ① the knowledge economy greatly accelerate the speed of information dissemination, business in the face of more opportunities, decision-making risk will be even greater; knowledge economy companies to shorten product life cycles, knowledge and technology updates faster, raise the proportion of intangible assets, investment, business investment and operation of the market face more complex, more uncertainty, increased risk. ② the rapid development of e-commerce to promote the network of financial, capital flows faster, greatly improving the efficiency of corporate finance, but at the same time, the financial security and risk will also increase. ③ Economic globalization means international financial management from the perspective of to look at ourselves, corporate finance, investment and business to the international market, with more opportunities and choices, but also face more intense competition, increased business risk and financial risk, especially in the context of financial globalization, businesses can use derivative financial instruments to control and prevent risks, and yet because of derivative financial instruments for speculative itself has become another source of risk enterprises. Enron bankruptcy, is a prime example. Enron had more use options, futures and "special purpose entities" (referred to as SPE,) high-risk derivatives, a large number of long-term contracts, so very uncertain future earnings; excessive debt, resulting in financial leverage effect is multiplied, the result must exacerbated the company's bankruptcy risk. ④ 21 century, with the rapid development of science and technology, high-tech enterprises to venture capital investments rise, according to data indicate that from 1994 to 1996, the U.S. high-tech industry GDP contribution reached 27 percent due to high-tech industries with high growth, high-risk characteristics, determine the concept of venture capital business in high-risk in the pursuit of high returns, so much attention to the risk of investment management, investors and the investment risk , the repayment of the principal risks to business management, risk management is a new topic.

3.4 on financial management of the main changes 
Financial management of the main entities of the shift by the virtual Financial management is the main financial management to serve specific organizational entity, under certain socio-economic patterns of the material interests of the independent economic entity, this entity is relatively stable physical. After the establishment of modern enterprise system, companies only get the full financial power to become the financial body, but in the new economy, with the rapid development of network technology, the growing e-commerce promotion, which appears above this form of enterprise virtual companies, These virtual companies are often only a dynamic, short-term strategic alliance, because due to the situation and health, targeted to be completed soon after the dissolution of the partnership. When sharing together, division and quickly, so that financial subjects seem virtualization, fuzzy.

3.5 Financial management tools changing 
Financial means will be network based. Network is the Internet financial internal network and e-commerce activities in the context of online banking, mainly reflected in: ① Corporate Affairs to integrate the entire process of dealing with the financial resources, improve the competitiveness of enterprises. all business activities can be real-time reporting, easy online business management, thereby enhancing work efficiency. ② For more involved with complex structure and the subsidiary bodies of the industry group enterprise, the realization of financial and business, and among the various departments within the enterprise business and social aspects of collaboration, can optimize the allocation of resources, maximize the conservation and use of resources. ③ financial environment in the network, electronic documents and the widespread use of electronic money, you can save a lot of intermediate links, to promote the flow speed and financial efficiency increase, and thus accelerate the capital turnover rate, reduce the cost of capital.

In short, economic globalization and knowledge economy era and many market after China's accession to the WTO will change the opening of the financial management of the traditional management objectives, content, methods and even the entire financial management system, business to survive and continue development, we must consider The future of reform challenges, according to the new financial management requirements to explore increasingly sophisticated market economy under the conditions of development of financial management and innovation.


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