Problems In Achieving Financial Management Objectives Of Enterprises

< p > for a long time, most enterprises in our country regard "profit maximization" as the ultimate goal of corporate finance. The goal of maximizing profit is to increase profits and maximize profits through the management of financial activities.

However, because the goal of maximizing profits does not take into account the time value, risk value, input and output relationship of funds, it often leads to the short-term behavior of financial decisions of enterprises, so it is gradually denied by practice.

Its main performance is: < /p >

< p > < strong > 1 with < a href= > //www.sjfzxm.com/news/index_c.asp > planned economy < /a > core > /strong > /p >

< p > in the aspect of fund management, it is mainly the method of determining capital quota and the method of compiling fund plan; in cost management, it is mainly the calculation of cost reduction index and the compilation method of cost plan; in profit management, it is mainly the calculation of profit index and the compilation method of profit plan.

All these methods are the analysis and embodiment of the completion of the plan indicators, but they can not directly reflect the information of the business decisions.

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< p > < strong > 2 basically do not consider < a href= "//www.sjfzxm.com/news/index_c.asp > risk factor < /a > /strong > /p >

< p > under the planned economy condition, enterprise management mainly carries out relevant national plans, fulfil all kinds of targets stipulated in the plan, and complete the plan. The financial activities of the enterprises have been basically determined, and seldom talk about the business risks involved in the business process.

In this way, the risks in the eyes of the executives and financial managers of enterprises are only ignored or assumed.

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< p > strong > 3 < a href= "//www.sjfzxm.com/news/index_c.asp" > economic management system < /a > not complete. < /strong > /p >

< p > under the condition of planned economy, because of the little research on enterprise operation prediction, it basically does not involve in business decision making, thus losing the true embodiment of enterprise profits.

For example, there are financial budget methods, financial planning methods, financial analysis methods and financial control methods, but lack of financial decision-making methods.

Nowadays, the goal of "maximizing shareholder wealth" is proposed, which overcomes the shortcomings of the goal of maximizing the profit of enterprises, and reflects the requirements of capital owners for capital gains. However, its advantages and disadvantages are obvious.

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Therefore, the maximization of enterprise value can only be a theoretical formula and ideal development goal in our country at present, and it has little guiding effect on financial management of enterprises.

Because of these factors, some people put forward the goal of financial management, such as maximizing cash flow, maximizing cash dividends and maximizing net present value, but these goals only make financial management available in some aspects, and can not represent the general goal of financial management.

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