Enterprise finance is the management of enterprise financial activities, which is included in mainstream enterprise management education such as MBA and MBA as an enterprise value management activity.
Corporate finance mainly predicts, makes decisions, plans, controls, accounts and analyzes the raising, use and distribution of funds in the company's production and operation activities according to the movement law of funds, so as to improve the utilization effect of funds and realize the management of maintaining and increasing the value of funds.
Corporate finance has three characteristics: openness, dynamics and comprehensiveness.
1. The modern market economy is dominated by the financial market, which, as a place for enterprise financing and a link between the supply and demand sides of enterprise funds, has a decisive influence on the socialization of enterprise financial behavior. The openness of financial market system determines the openness of enterprise financial behavior.
2. Corporate finance takes the capital movement as the object, and the capital movement is the general and essential abstraction of the enterprise's business process, and it is the comprehensive reproduction of the enterprise's reproduction and business process. Therefore, the enterprise financial activity centered on fund management is a dynamic management system.
3. Corporate finance revolves around the capital movement, which is the most comprehensive performance as the main process and main aspects of enterprise production and operation. Mastering the capital movement is like holding the "bull's nose" of the enterprise's production and operation, and "pulling one hair and moving the whole body". Comprehensive is an important feature of financial management.
General steps
1, scientific investment decision. Determine the best investment direction and flow direction in order to obtain the best investment benefit-the basis of financing decision.
2. Scientific financing decision. Reasonable selection of financing mode, scale and structure, comparative analysis of expected financing income and financing cost, in order to optimize the capital structure of enterprises and improve their profitability.
3, scientific income distribution decision, correctly determine the proportion of enterprise profit retention and distribution and reasonable dividend policy.