|
Comparative analysis of SMEs' financial governance objectives and medium-sized enterprises
With the development of the theory of corporate governance benefits 1990s stakeholder co-governance , corporate enterprise is not only the shareholders , but stakeholders about the conclusion of a combination . Those who provide resources to the enterprise ; bear the risk of the business interests of stakeholders , including businesses interested shareholders, creditors, suppliers , employees , government and communities together to form a community of interests , should be shared enterprise the control and residual claims . Thus , corporate governance can not be confined to the internal governance structure based governance, but stakeholders through a series of internal and external mechanisms to implement shared governance , the main goal is to clear stakeholder responsibilities and rights responsibilities and rights not only of shareholders, including through a formal or informal, internal or external system or mechanism to coordinate the interests of enterprises and between all stakeholders in order to promote scientific and business decisions , and ultimately ensure maximum benefits of enterprise stakeholders . Its fundamental purpose is through this arrangement , the formation of mutual checks and balances between the main stakeholders of financial powers, duties and interests , to ensure the safety checks and balances in corporate finance , state coordinating work efficiently functioning .
With respect to listed companies, small and medium enterprises with small-scale , quantity, production and operation of flexible, more dependent on the profitability of products to survive , the management level is not high characteristics, which determine the SME financial governance objectives particularity : the pursuit of profit tendency evident , it is to ensure the survival of the profits ; financial management level is not high , decision-making , planning subjectivity and arbitrariness ; high financial risk , operational risk . Current discussions on SME financial goals there are two views : one is to maximize profits ; second is to maximize corporate value. SME financial goals should be considered to maximize profits is the reason : most SMEs play an active role in the economic circle , while the Pro fierce competition , only to make sustained profitability avoid elimination ; "profit maximization" goal is simple, clear and feasible project . http://www.ukassignment.org/mgessaydx/SME financial goals should be considered grounds enterprise value maximization is: consider the time value of money and the risk that the value of the enterprise , the benefits and risks linked to avoid short-term corporate financial decision-making behavior ; consider corporate social responsibility , corporate profitability and social responsibility of unity, which is conducive to mobilize the enthusiasm, initiative and creativity together to improve the economic efficiency of enterprises and struggle a promote its rapid development.
SME -oriented mechanism proper financial governance
Financial governance -oriented mechanism , also known as the financial mechanism of governance objectives , means consistent with the business goals to lead the corporate finance activities and determine the direction of financial arrangements. Establish clear financial governance -oriented mechanism to provide a reference for financial institutional arrangements and financial management activities specific to SMEs , only a clear target in order to decide how to achieve their goals. Currently, the financial management of SMEs simple goal attributed to maximize the value of profit maximization or corporate point of view are too one-sided . On the one hand failed to consider the time value of money and the enterprise value at risk , may lead to short-term corporate financial decision-making behavior ; hand failed to take ownership change at different stages of SMEs. SME start-up stage , owners and operators are mostly set in one of owners of capital and labor into one, simple property rights, the main financial governance ( the owners ) to pursue their own interests to maximize the inevitable. But with the development of enterprises, is bound to absorb external funds , then the sum of the enterprise to become a multilateral contractual relations : the shareholders , creditors, managers and employees . If you attempt to damage the interests of one party and the other party to profit , the result will lead to conflicts such as workers strike, the creditors refused to provide loans to sell the shares held by the shareholders , these are not conducive to the sustainable development of enterprises.
Based on the enterprise life cycle theory , the SME property rights system with the gradual expansion of business scale and expand business scope , will gradually become an obstacle to sustainable development of enterprises , resulting in changes of ownership structure. Accordingly, the financial management of the target company should also be with the changing dynamics of property rights system and make choices .
In the pioneering period , SMEs ' rights one " very serious information asymmetry , risk levels are high , and its members are the owners of SMEs Hill family members, relatives , etc. In this case constitutes a simple financial relationship with" the greatest profit "of a target company 's financial governance may be more feasible and oriented. But " profit maximization " There should be a long-term sustainable profit maximization , not a short-term profit maximization .
Core knowledge and ability in growing SMEs to start the accumulated gain competitive advantage for the enterprise , product supply channels relatively smooth, stable target customer base , market share is rising . With the expansion of business scale, companies need external financing to absorb professional managers , corporate power begins to decompose property , corporate financial management objectives should then begin to consider other benefits derived property rights other than the original property rights for the enterprise further expand the scale required to attract capital and talent to get the long-lasting , stable profits , taking into account the quality of profits. At the same time , companies should also begun to focus on social benefits, fulfill and corporate social responsibility , said relative position to pass the relevant conduct to enhance corporate social image , to obtain more resources and growing profits. From a long-term perspective, to maximize corporate profits and social responsibility is unity , and the start-up period is different this time enterprises have the ability to fulfill their social responsibility matter .
After maturing for SMEs , corporate organization and management has been basically perfect modern enterprise system has been established, further decomposition of Property Rights , the formation of the modern enterprise system of property rights "ownership of a legal property right to operate a " model . Under this system , the different capabilities and different property corresponds to property rights , individual property rights through the exercise of the powers of different ownership , the formation of rights, interests and responsibilities of clear property rights between each other , while the previous financial knowledge and skills has accumulated on the basis of the highest level.
|
