Financial Management Centered On Resource Allocation And Financial Governance Centered On Financial Rights Allocation

Finance refers to the production and operation of enterprises. process The investment and income activities of the principal capital and their specific economic interests.

The concept of Finance Features It is decided that the study of finance should be conducted from the combination of financial duality -- economic attribute (capital movement) and social attribute (property right contractual relationship).

However, the research framework and thinking of traditional financial theory basically follow the research paradigm of neoclassical economics. The new classical enterprise theory regards the enterprise as a whole that seeks profit maximization and cost minimization. It assumes that the system and structure are established, and explores the conditions for achieving optimal allocation of resources.

Therefore, the traditional financial management theory takes the financial resource allocation function as the core. It only analyzes the financial economic attributes from the quantitative level, and generally belongs to the category of value management theory. It emphasizes the study of financial management activities, such as capital structure theory, portfolio theory, capital asset pricing theory, MM theory, dividend theory and so on. It is undeniable that these theories have played a positive role in promoting the theoretical research and practical application of modern finance.

However, the traditional financial theory has neglected the right way. modern The research on the characteristics of contractual relationship of property rights does not incorporate the system into the explanatory framework of financial behavior and despises the study of financial society.

The new institutional economics, which emerged in the twentieth Century 60~70, tells us that a system arrangement, institutional framework and institutional innovation to save transaction costs are essential. The new institutional economics focuses its attention on the system and structure itself, explores the institutional structure of resource allocation, and emphasizes that the important development of the system in economics gives birth to a refreshing institutional analysis framework. In this way, people began to attach importance to the financial function of financial allocation, which led to the rise of theoretical research on financial governance structure.

The theory of modern financial governance structure is the theory of financial power allocation, and it is a theoretical system based on the new institutional economics. The core concept in the study of new institutional economics is "property right". The analysis of new institutional economics usually starts with the concept of "property right", and the distribution of property rights among different stakeholders is the starting point of institutional analysis.

It can be said that the category of "property right" is the logical starting point of the analysis of new institutional economics. The modern financial governance structure theory is a theoretical system built on the basis of new institutional economics. According to this logical reasoning, the core concept of modern financial governance structure theory should be the financial power part of the property right, financial power. As a matter of fact, the research on the theoretical system of modern financial governance is based on the core concept of financial power.

As far as management theory circles are concerned, corporate governance is not the same. However, the theory of financial governance based on the theory of financial power to achieve the rational allocation of financial rights has become a common understanding in the financial theory field. There is no doubt that the theory of financial governance centered on the allocation of financial power will be the new focus of financial theory research in the future.