Financial management goal, also called financial management goal, refers to the fundamental goal that enterprises should achieve in financial activities, which determines the basic direction of enterprise financial management. Establishing financial management objectives is the prerequisite for the success of modern enterprise financial management. Only with clear and reasonable financial management objectives can financial management have a clear direction. Therefore, enterprises should scientifically and reasonably select and determine the financial management objectives according to their own actual situation and the requirements of the market economic system for enterprise financial management.
The main functions of financial management objectives are guidance, encouragement, cohesion and assessment.
What are the characteristics of financial goals?
1, relatively stable
With the change of macroeconomic system and enterprise management mode, with the development and deepening of people's understanding, financial management objectives may also change. However, the changes of macroeconomic system and enterprise management mode are gradual, and qualitative changes will only occur at a certain stage of development; After people's understanding reaches a new height, it also needs a process of reaching * * * knowledge and being generally accepted. Therefore, as a generalization of objective regularity, financial management objectives are relatively stable on the whole.
2, operability
Financial management goal is the premise of implementing target financial management. It is necessary to mobilize organizations, formulate economic indicators and decompose them accordingly, realize the control of employees and conduct scientific performance appraisal. In this way, financial management objectives must be operational. Specifically: measurable, traceable and controllable.
3. Hierarchy
Financial management goal is the premise of the smooth operation of enterprise financial management system, and it is also a system itself. Various financial objectives form a network, which reflects the internal relationship between the objectives. The hierarchy of financial management objectives is determined by the diversity of enterprise financial management contents and methods and the hierarchy of their relationships.
What is the goal of enterprise financial management?
1, profit maximization
The goal of profit maximization is to assume that the financial management behavior will develop in the direction of enterprise profit maximization under the condition that the expected return on investment is determined. However, in the pursuit of profit maximization, it should be noted that the acquisition of high profits often takes too much risk. One-sided pursuit of profit maximization may lead to short-term behavior of enterprises and deviate from the strategic objectives of enterprise development.
2. Maximize shareholder wealth
The goal of maximizing shareholder wealth refers to the goal of maximizing shareholder wealth in enterprise financial management. In listed companies, the wealth of shareholders is determined by the number of shares they own and the stock market price. When the number of stocks is fixed, the stock price reaches the highest and the wealth of shareholders reaches the maximum.
The goal of maximizing shareholders' wealth considers risk factors, which can avoid enterprises from pursuing short-term behavior to a certain extent and is relatively safe; But this goal is usually only applicable to listed companies, paying too much attention to the interests of shareholders and ignoring the interests of other stakeholders.
3. Maximize enterprise value
Enterprise value is the market value of the enterprise and the present value of the estimated future cash flow that the enterprise can create. The financial management goal of maximizing enterprise value reflects the potential or expected profitability and growth ability of the enterprise. This goal considers the time value of capital and the risk of investment, embodies the requirements of maintaining and increasing the value of enterprise assets, and is conducive to overcoming the one-sidedness of management, short-term behavior and rational allocation of resources. The disadvantage is that it is difficult to establish enterprise value.
4. Maximize the interests of stakeholders.
The basic idea of maximizing the interests of stakeholders is to ensure the long-term stable development of enterprises, emphasizing the interest satisfaction of various interest groups headed by shareholders in the value-added of enterprises. This goal embodies the value concept of win-win cooperation and is conducive to the long-term stable development of enterprises.
5. Maximize social value
Because the main body of the enterprise is diversified, it involves the interests of all aspects of society. To this end, the realization of enterprise goals can not only be investigated from the enterprise itself, but also must be standardized from the larger social system to which the enterprise belongs. In order to survive in the fierce competition environment, enterprises must achieve harmony with the surrounding environment. The advantage of maximizing social value is to realize the coordinated development of expected stakeholders, form a virtuous circle relationship between corporate social responsibility and economic benefits, and reflect the unity of economic benefits and social benefits.