Corporate finance management. Corporate financial management system

Measures are being developed to ensure the transparency of the financial condition of the corporation (based on the improvement of management accounting, the transition to international accounting standards), as well as measures to ensure control over financial flows;

The mechanisms and directions of investment, possible sources of attracted funds, credit resources, guarantees are determined;

Measures are being developed to bring the corporation's securities to the stock market with the determination of the costs of using various stock instruments (determining the type of securities (shares, bills, bonds), choosing a primary dealer of securities or a portfolio investor and agreeing with him the terms of sale and the trading platform for primary trading , accompanying advertising campaign, etc.).

IN modern conditions the dynamic external business environment requires periodic review of goals based on an analysis of the relevant criteria, so that the internal parameters of management correspond to external conditions.

To realize its mission and achieve its goals, it is not enough to formulate a strategy; it is necessary to determine the mechanisms and ways by which this strategy will be implemented. The most important role is played by the system of corporate governance adopted by the company.

A corporate governance system is a set of principles and mechanisms for making decisions in a company and monitoring their implementation. This system, as a rule, is formed taking into account the specifics of the activities of each corporation:

Ownership structures;

Degrees of concentration or dispersal of share capital;

Principles for making strategic decisions to control their implementation, including the formation of the board of directors, supervisory boards and the internal audit system;

The presence or absence of state control over the corporation;

The predominant type of funding activity.

The role of the corporate governance system has now increased significantly. The processes of globalization, the growing competition between the world's transnational companies require management to create the most effective models of corporate governance. At present, several such models have been formed in the world.

The British-American model of corporate governance involves the widespread use of stock market instruments in the activities of companies. Enterprises finance their activities mainly by issuing securities. The possibilities of banks in the stock market are limited by law, the main players in the stock market are non-banking financial institutions such as pension funds, insurance and investment companies, as well as individuals. The share capital of most companies is highly dispersed; boards of directors are formed mainly from among managers, large shareholders and outsiders.

This system is characterized by the desire for growth, hence the constant increase in market share and conglomerate phenomena. At the same time, managers are considered only agents of shareholders seeking to maximize the value of shares. Thus, the American-British model of corporate governance focuses mainly on financial thinking.

In the German or continental model of corporate governance, the banking system plays a dominant role. The banking system is dominated by large banks that control a significant part of the financial market. Large banks, individuals and corporations are the main shareholders of companies;

Effective control over the activities of companies is achieved through the presence of a two-level system of control over decision-making (board of directors, supervisory boards). The Board of Directors is formed mainly from management representatives and major shareholders. The Supervisory Board consists of shareholders, representatives of the company's employees and major creditors.

The model is called the insider system, as it is dominated by internal factors and the active participation of the company's employees in management is characteristic, and the development of the company and its role in society is more important than simply increasing the value for shareholders

The Japanese model of corporate governance is in many respects close to the German one, but in addition to the above factors, a special scheme of relations between corporations and employees of enterprises plays a very important role in it.

The domestic system of corporate governance is still in the process of formation. Obviously, continental options are preferable for Russia. It so happened historically that for the last three hundred years Russia has been culturally and economically largely in the sphere of Western European influence. We are talking about accounting and reporting systems, taxation, which were largely borrowed from continental Europe, not to mention the terminology and mentality.

However, the full-fledged application of the most effective forms of corporate governance is currently hindered by a number of negative phenomena that are still inherent in the domestic economy. This is due to the rather high concentration of capital in the hands of large investors (and, consequently, the absence of a wide range of minority shareholders), the narrowness of the stock market, which is concentrated around the oil and gas sector. This also includes the monopolization of markets and financial flows, the “privatization” of government institutions, the irresponsibility of partners, the vulnerability of minority shareholders, etc.

Goals, objectives and functions of corporate finance management

The list of goals and objectives pursued by the enterprise, carrying out its financial and economic activities, can be very wide. Therefore, it is very important to determine which of these goals are priority and which are secondary. As for financial goals, they are determined by the main areas of corporate finance:

Regulation of the financial results of the current production activities of the enterprise, i.e., the definition best options the formation of individual elements of the cost of production, the distribution of costs, pricing, taxation, etc.;

Choice of sources of financing - management of own and borrowed capital;

Asset management - activities related to the formation of enterprise property, real and financial investments,

Consider the main objectives of financial management.

The goal of profit maximization. Until recently, it was believed that any company exists in order to maximize profits (usually it is understood that we are talking about profit from a position of not one-time, but long-term receipt of it). However, ideally, when equal access to information, the presence of experienced leadership and other factors are assumed, it is impossible to achieve such a maximum. That is why the concept of “normal” profit is used, that is, profit that suits the owners this business. Indeed, profitability various kinds production can vary significantly, which does not, however, cause the desire of all businessmen to simultaneously change their business to a more profitable one. This approach is based on a very common pricing system for manufactured products - “cost plus some markup that suits the manufacturer”.

The purpose of increasing the scale of production. In the practice of some companies and their management, there may be a desire to increase production and sales volumes. This is justified by the fact that many managers associate their position (salary, status, position in society) with the size of their firm to a greater extent than with its profitability. However, unmanaged unbalanced growth, outpacing the rate of profit growth, always leads to problems with the financing of current activities, cash gaps and solvency.

The goal of growth in earnings per share. As part of assessing the financial performance of a company, the indicator “earnings per share” is very common; to assess the effectiveness of investments, the indicator "return on invested capital" can be used. However, decision-making based on these and similar indicators is also not always unambiguous, since these indicators do not take into account the dynamics cash flows, profitability of current activities and a number of other important factors.

Most common in last years has the goal of maximizing the value of the company. The developers of this theory proceeded from the premise that none of the existing criteria - profit, profitability, production volume, etc. - can be considered as an adequate criterion for the effectiveness of financial decisions. Such a criterion should:

Take into account the expected income of the owners of the company;

Take into account all aspects of the process of making managerial decisions, including the search for sources of funds, the actual investment, the distribution of income (dividends).

It is believed that these conditions are more consistent with the criterion of maximizing equity, which for public companies is transformed into a criterion for maximizing the market price of ordinary shares. This approach is based on the following fundamental idea of ​​the development of society, shared by the majority of economically developed countries West, - the achievement of social and economic prosperity of society through private property. Therefore, any financial decision that ensures the growth of the share price in the future must be made by the owners and / or management personnel.

Functions of corporate finance management can be systematized as follows.

Planning. Includes strategic and current financial planning. Drawing up various estimates and budgets for any events. Participation in pricing policy and sales forecasting. Participation in determining the terms of agreements (contracts). Evaluation of possible changes in the structure in the form of mergers or divisions.

Providing sources of financing (capital). Search for internal and external sources of short- and long-term financing. The choice of the most optimal combination of them.

Management of financial resources. Cash management on accounts and at the cash desk, in settlements. Management of portfolios of securities. Loan management.

Accounting, control and analysis. Establishment of an accounting policy. Processing and presentation of accounting information in the form financial reporting. Analysis and interpretation of results. Comparison of reporting data with plans and standards. Internal audit.

Asset protection. Management of risks. Choosing the best way to insure various types of risks.

Tactical tasks, the solution of which should be provided by financial management in modern conditions, are:

Maintaining the solvency of the corporation at any given point in time, which is achieved by balancing the volumes and timing of cash receipts;

Development of an effective system for financing current activities by developing a credit and tax policy, optimizing the size and structure of working capital.

Ensuring profitability of sales (i.e., competitiveness at the operational level) through the formation of an effective pricing policy and cost management at all levels.

Specific forms and methods for the implementation of these functions and tasks are determined by the financial policy of the enterprise, the main elements of which can be:

Accounting policy;

Credit policy;

Cash management policy;

Cost management policy;

Dividend Policy.

The choice of an accounting policy option should be carried out by an enterprise in accordance with national accounting standards. As part of the credit policy, the issue of security is resolved working capital- the value of own working capital, the need for borrowed funds. For this, commercial loans, short-term bank loans are used.

If it is necessary to attract a long-term loan, the capital structure and financial stability are studied. Cash management policy - planning and control system. Dividend policy must balance the protection of the interests of owners with the interests of managers and creditors.

The Order of the Ministry of Economy of the Russian Federation dated 01.10.1997 No. 118 " Guidelines on the development of the financial policy of the enterprise.

3. Organizational structure of corporate financial management

To implement the functions of financial management and achieve the goals of maximizing the value of the company, an organizational structure of financial management is formed, which allows you to distribute functions and responsibility for their implementation between certain services, departments and performers. The interaction of financial management units should be built in such a way as to ensure a coordinated solution of the set financial tasks, for which it is planned to create a certain hierarchical structure of the financial department, headed by the CFO (Chief financial officer).

Simplified scheme organizational structure shown in fig. 2.2 shows the management functions that are most often allocated to separate areas, or departments. The key positions of the financial director in the modern structure of company management are confirmed by the fact that in large corporations the financial director can directly report not only to the general director, but also to the board of directors, which ensures independence in making current financial decisions and most effectively contributes to the coordination of the activities of financial services and strategic goals of the company's owners.

The emergence of complex corporate structures, the emergence of new financial instruments and tasks, the expansion of the powers and competencies of financial specialists create the prerequisites for changing the organization of the work of the company's financial services. To discuss topics related to financial management at Russian and foreign enterprises, and to exchange the experience of top managers, the CFO-Russia.ru portal was created, there is a Club of Financial Directors, specialized magazines CFO, Financial Director, Financial Management are published .

The knowledge and competencies of a modern financial director cover a wide range of issues - from regulatory and methodological documents on the organization of accounting, provisions of tax, corporate, banking law, skills in building management accounting and managing financial flows within the framework of operational and financial activities to the formation of a risk assessment system , calculations financial indicators, introduction of planning methods, budgeting, development of dividend policy, etc. As the tasks become more complex and the activities of the financial director are saturated with additional functional responsibilities, new divisions are allocated as part of the financial department. Since the formation of financial management in our country is largely determined by the currently dominant British-American and continental models of corporate governance, it is advisable to consider the organization of financial work in accordance with these two approaches.

The organization of financial work in the company in accordance with the traditional Western concept involves the creation of a financial service, represented by the treasury, and a controlling service. The difference between the continental and British-American approaches lies in the scope and composition of the functional responsibilities assigned to each service.

Common in the interpretation of the main task of the controlling service for both approaches is that the specialists of this unit must provide the company's management with information for making strategic and tactical decisions in the process of carrying out the main activities of the enterprise in accordance with the adopted plans. To accomplish this task, a number of steps are required:

Training teaching materials according to the calculation of the main indicators for assessing the activities of the enterprise;

Monitoring the achievement of planned financial results and standardizing the costs of the entire issue and in the context of individual product groups and positions;

Analysis of deviations and assessment of possible consequences for the financial condition of the enterprise;

Preparation of proposals to improve the financial situation of the enterprise;

Introduction of clarifications, corrections to the methodology for planning target indicators;

Timely adjustment of goals when the factors of the external environment of the enterprise change.

Fig.2.2. Organizational structure of enterprise management (simplified version)

Fig. 2.2.1 British-American approach to the organization of financial management of a company

Italicized in Fig. 2.3 and 2.4, the IT service can be part of the controlling service if its tasks are limited to building information system for operational financial decisions, but, as a rule, it should ensure the creation of a unified information system of the enterprise and report either to the financial director or the general director.

Rice. 2.2.2 Continental approach to the organization of financial management of the company

The main purpose of creating a financial service (treasury), as a rule, is to improve the solvency of the company through the operational management of cash flows for current activities and the strategic management of cash flows in the course of financial activities. In the course of current activities, the financier solves the following tasks:

Operational planning and optimization of cash flows;

Management of cash balances and formation of a settlement mechanism between enterprises; control accounts receivable;

Cash gap management;

Control over the compliance of payments with cash flow budget items (BDDS).

Cash flow management for financial activities involves the performance of certain functions, which are commonly referred to as:

Financial risk management;

Organization of relationships with banks;

Building relationships with investors and creditors;

Formation of the target capital structure and control of the cost of capital;

Payment of dividends.

Each of these functions can be separated into an independent subdivision that is directly subordinate to the financial director: shareholder relations department, securities department, banking department, etc. e. Monitoring the status of settlements, planning the payment calendar and optimizing cash flows remain the tasks of the treasury service.

Functional interaction should be established between the departments that are part of the financial service and the controlling service regarding the transfer of information in order to control the execution of financial plans and their timely adjustments.

The main difference between the continental and British-American versions of the organizational structure of financial management is the decision to include in the responsibilities of these accounting and reporting services. This is because the organization of these services is based on different principles. So, in the German concept, the tasks of financial management are divided into internal and external, and in the American one - into tasks related to cost and profit management, and into tasks for managing the enterprise's cash flows.

German experts consider controlling a system aimed primarily at obtaining operational information from the company's management about the internal processes of the enterprise. Therefore, its tasks should not include financial and tax accounting, reporting, insurance settlements, since this activity is carried out mainly to inform external users: investors, government agencies, etc. In this regard, financial accounting in German enterprises assigned to the treasury or directly to the financial director.

Controlling in the American concept is responsible for the process of preparing information on the formation of financial results for both internal and external users, therefore, they consider it necessary to organizationally subordinate the accounting service to the main controller.

For both models of financial management, an important issue remains the organization of financial control functions, which are called upon to perform internal audit and internal control departments. Unlike the British-American concept, the continental approach relies on the fact that the internal audit department prepares reports on the implementation of business transactions and on the reliability of their reflection in financial documents directly for the company's management.

Topic 3: " Theoretical basis corporate finance"

1. General methodological principles of corporate finance

2. Basic theoretical concepts of corporate finance

3. Modern theories of corporate finance

1. General methodological principles of corporate finance

The main direction of corporate finance is associated with the functioning of capital markets, the determination of the value of financial assets, the choice of methods of financing and investment. The corporate finance methodology is based on the principles effective application financial instruments, the characteristics of which change over time, and these changes occur when factors of uncertainty and risk are taken into account.

The theory of corporate finance as a science took shape and was developed in the 20th century. in Western countries, since the main prerequisites for this have been formed:

The foundations of general economic theory were formed;

Production and the level of organization of society have reached the point of highest development in the form of the creation of an industrial economy, which is based on a large industrial production and joint-stock form of ownership;

An effective system of legal institutions and market infrastructure has been formed;

A developed system of national and international stock markets and financial intermediaries emerged.

Seventies of the XIX century. were a turning point in the development of economic theory. It is from this period that the history of modern microeconomics begins. It is called the marginalist revolution. The greatest contribution to it was made by the works of W. S. Jevons and C. Menger (1871), L. Walras (1874). The most essential features of the marginalist theory are: an equilibrium approach; economic rationality; limit analysis; mathematization.

It was the methodological principles of marginalism that served as the basis for most of the theoretical concepts not only of corporate finance, but also of many other applied branches of economic science. The most important reason for the predominance of the marginalist school is its universalism. The theory of marginal utility has created a theoretical language and tool of analysis (marginal analysis) suitable for use in solving other economic problems.

At present, we can say that the world has developed the main scientific schools in the field of corporate finance, based on the achievements of modern economic science, as well as the specifics of the development of a market economy in various countries. These include the market and continental schools.

The market school (also called the Anglo-American) is based on the dispersal of capital (owners of equity and debt capital are represented by holders of stocks and bonds) with relatively little participation of owners in the management and control of cash flows. In conditions of developed financial markets and a strong legal framework, such participation is usually sufficient to ensure the transparency of financial information and financial decisions.

In such a system, the strategic goal is to maximize the market value of the company's capital. It is this goal that has received the most recognition in the market theory of corporate finance and has played an important role in the development of corporations. different countries. To call this concept American can only be very conditional, since for many companies in Germany, France and other countries of continental Europe, everything greater value issues of entering the stock markets and maximizing the market valuation of capital are beginning to acquire. The market school is based on the principle of the owner, since the main actor of the corporate sector in the open market system is the shareholder, who provides the enterprise with the necessary financial resources (own capital of the enterprise).

In the conditions of a developed stock market and dispersion of capital, the maximization of the wealth of owners is expressed in the growth of the market value of shares and depends on a large number of factors: the time of receipt of income; use of borrowed capital; dividend policy; situation in the financial market, etc. However, the growth of the welfare (capitalization) of the shareholders of a particular company does not always meet the macroeconomic goals of the socio-economic development of the national and world economy. It has long been noted that when making investment decisions, one cannot rely only on stock market data, since the financial sector does not fully reflect real economic indicators and the picture is constantly distorted by the actions of market participants. These distortions tend to accumulate over time, resulting in a serious systemic imbalance - a “bubble”, and then a market collapse.

Bankruptcies of the largest banks in a number of the most developed countries of the West, a decline in real estate and stock markets around the world in 2008-2009. unequivocally demonstrated some one-sidedness of the owner principle.

The Continental School of Corporate Finance operates in a "connected" financial system, where there is a relatively weak fragmentation of capital, developed institutions of social and professional protection. This school primarily relies on the so-called participant principle. The participant principle recognizes that, in addition to the shareholders who are the legal owners of the company, there are a number of other groups that have legal rights to participate in the activities of the company. These include: financial institutions; workers and employees of the company; buyers of finished products; suppliers of raw materials, materials, services, etc.; society.

With this approach, the emphasis in decision-making by managers changes and the maximization of capitalization rarely acts as a priority, even in strategic settings. The issues of ensuring the required return on invested funds, entering world markets and establishing new financial dependencies come to the fore.

The principles of owner and participant are not absolutely opposite to each other, but to some extent turn out to be interdependent. If an enterprise does not generate adequate income for its shareholders, then it will not have access to additional share capital to expand their activities.

In the linked market system, the transformation of the participant principle thus led to the formation of the principle of maximizing the social responsibility of the enterprise. Social responsibility is based on the premise that the enterprise does not operate in a social vacuum, but constantly interacts with all public structures - trade unions, local governments, etc. The details of these interactions differ from company to company. For all firms, these relationships adjust over time as a result of changes in the social and economic environment.

Similar information.

One of the functional elements of financial management is planning. The value of corporate financial planning is as follows (Fig. 3.3.9).

Rice. 3.3.9.

The object of financial planning is financial activity, and the final result is the preparation of financial plans. Objects of corporate financial planning:

• - proceeds (net) from the sale of products (goods, works, services);
• - profit and its distribution;
• - special purpose funds and their use;
• - volume of payments in budget system in the form of taxes and fees;
• - contributions to state off-budget funds;
• - the amount of borrowed funds attracted from the credit market;
• - planned need for working capital and sources of financing;
• - volume of capital investments and their sources. The subjects of planning may be the heads of the corporation and the chief accountant, employees of the planning department, managers and other persons. Each financial plan defines income and expenses for a certain period of time.

Financial plan - a generalized financial document that reflects the receipt and expenditure of funds for the current (up to one year) and long-term period (Fig. 3.3.10). This financial plan needed:

Rice. 3.3.10.

• - to obtain a qualitative forecast of future cash flows;
• - preparation of current and capital budgets;
• - forecasting the volume of financial resources for the planned period.

The main goal of financial planning is to determine the possible amount of financial resources to fulfill the set corporate goals. The tasks of financial planning are determined by financial policy. These are tasks that can be: analysis and evaluation of the relationship between decisions on dividends, financing and investments based on the use of economic, legal, accounting and market information; forecast of the consequences of managerial decisions; selection of feasible solutions within the financial and investment plans; comparative assessment of the implementation of decisions and goals of the financial plan.

Corporate financial planning is based on the following principles (Fig. 3.3.11).

Rice. 3.3.11.

Forms and methods of corporate financial planning depend on the form of the corporation and the type of their economic activity.

Taking into account the planning horizon, corporate financial plans are strategic, current and operational (Table 3.3.1).

Table 3.3.1.

Each type of financial plans of corporations has its own characteristics. The planned parameters of the corporation are expressed in financial terms. Financial plans determine the amount of necessary financial resources for the corresponding period of time of the corporation's operation.

The financial plans of a corporation can be divided according to purpose, therefore, there are several types of financial plans, including the balance sheet, investment plan, cash plan, credit plan, etc. Plans containing indicative parameters are forecasts. Financial forecasts are made for a long period of time.

Types of financial plans, depending on the purpose, are given in Table. 3.3.2.

Table 3.3.2.

Corporate financial planning methods are specific methods and techniques of planned calculations (Table 3.3.3).

Financial planning models are designed to refine the forecast by determining the relationship between dividends, investments, sources and methods of financing the corporation. Western economists use three models of financial planning, forecasting and analysis: a system algebraic equations; models linear programming; economic model(using multiple regression equations). The result of applying financial planning and forecasting models are options

Table 3.3.3.

financial statements (on profits and losses, on income and expenses, on cash flows).

The use of models makes it possible to establish: the share price; dividend per share; earnings per share; planned volume of new issue of shares and corporate bonds. The financial plan is related to the plan for production, procurement of materials, marketing, investment, scientific research and development, etc. In market conditions, they perform a predictive assessment of the sales markets for goods, which is taken into account in long-term financial plans for 2-3 years.

To draw up financial plans, the following sources of information are used: agreements (contracts) concluded with consumers of products; results of the analysis of financial statements; forecast calculations for the sale of products, sales of products; economic standards approved by legislative acts; accounting policy adopted by the management of the corporation.

Budgeting is the process of developing specific budgets (estimates) in accordance with the objectives of operational planning. Budgets are capital and investment, functional, auxiliary, special, etc.

The purpose of budgeting is to provide the production and commercial process with the necessary financial resources in the total volume and for the structural divisions of the corporation. The tasks of budgeting are shown in fig. 3.3.12.

Distinguish between the main and local budget.

The master budget is the financial, quantified expression of the marketing and financial plans needed to achieve the goals.

Local budgets are detailed budgets for drawing up the main budget. The budgeting process is continuous or rolling. Based on the planned financial indicators set for the year, a system of quarterly budgets is developed in the process of current financial planning. Within the framework of quarterly budgets, monthly budgets are compiled.

Rice. 3.3.12.

The main idea of ​​the budgeting system is that the leading parameters of the corporation's economic activity are taken into account at the level of its individual structural divisions in the context of types of income and expenses. To do this, create appropriate responsibility centers: income, expenses, profits and investments.

Responsibility center is a set of articles of the corporation, for the planning and implementation of which one of the managers of the corporation or the head of the structural unit is responsible.

In practice, responsibility centers are created in the form of financial accounting centers (FACs). The FSC is a structural unit that carries out a number of main and auxiliary activities and is capable of influencing the income or expenses from these activities. The composition of the CFU includes (Fig. 3.3.13):

Rice. 3.3.13.

Budgeting provides management with the following benefits: serves as a planning and control tool; increases the efficiency of managerial decision-making; allows you to clearly distribute the responsibility and authority of the heads of departments and specialists; increases the objectivity of the assessment of the activities of structural divisions and branches. Financial planning of the corporation is designed to ensure the financial balance of the corporation.

The conditions for effective financial planning of a corporation are (Fig. 3.3.14).

To determine the financial potential for the current and long-term periods, corporations have the right to develop plans in stages (Fig. 3.3.15).

The first stage in the development of an operational or annual financial plan involves an analysis of the financial performance of the corporation, taken for the period preceding the planning period. These indicators include: revenue, cost, volume of capital investments, return on assets and

Rice. 3.3.15.

own capital, indicators of financial stability, solvency and liquidity of the balance sheet.

The second stage involves the preparation of special calculations and tables for the financial plan. These are calculations of accounting and net profit and its distribution by direction, depreciation, sources of financing of capital investments, working capital needs, etc. In the literature on business planning, it is recommended to draw up several options for financial calculations to select the best option.

The third stage includes the development of reports on the execution of financial plans (budgets). They are used for financial analysis and planning for the coming period.

In Russia, in joint-stock companies, the annual financial plan should be the subject of discussion at general meeting shareholders (owners).

Under market conditions, business plans are formed, an integral part of which in a corporation is a break-even schedule. It is necessary when creating a new corporation, when developing an investment project, etc. In the process of planning the volume of sales of products (sales volume), it becomes necessary to determine its minimum value as a whole as the initial critical point, below which a loss will be received. After passing the break-even point, the corporation begins to make a profit. The break-even chart shows the impact on profit of the volume of production and the cost of production, taking into account the division of costs into conditionally variable and conditionally constant.

The chart allows you to determine the break-even point, i.e. the volume of production at which the direct sales revenue at a given price level intersects with the direct total cost.

In a corporation, a planned balance of income and expenses or cash inflow and outflow can be drawn up. The composition of the balance sheet indicators is determined by the source of funds and planned costs. Calculations of financial indicators are applied to the balance: profit, depreciation, funds for consumption and accumulation.

Financial planning largely depends on the quality of the forecast of the main indicators, market conditions, the state of money circulation and the ruble exchange rate.

Forecasting is the process of developing and making a forecast, i.e. a scientifically based hypothesis about the probable future state of a business entity or state and indicators characterizing this state. Forecasting is based on the most probable events and outcomes. Financial forecasting can be medium-term (5-10 years) and long-term (over 10 years).

Methods of financial forecasting are shown in fig. 3.3.16.

Rice. 3.3.16.

The main goal of the corporation's financial forecasting is to determine the realistically possible amount of financial resources and their needs in the forecast period. The starting point of financial forecasting in an organization is the forecast of sales and their corresponding costs, the end point and goal is the calculation of the need for external financing.

Finance is the object of study of financial science, which explores the patterns of development of social relations expressed in this value category. The object of study of financial science is both national (public) finances and the finances of individual economic entities (enterprises and corporations). With the help of public finance, the process of formation and use of public revenues and expenditures is studied. The object of studying the finances of economic entities is the formation and use of their capital, income and monetary funds (consumption, accumulation and reserve).

The development of monetary relations, expressed in finance, occurs according to relatively particular laws. The main ones are the following. First, financial relations are directly generated by the state, while other value categories (money, price, profit) are conditioned by the management of the commodity economy. Let us explain this regularity.

1. Development financial relations an objective necessity that arises at a certain stage in the development of society in connection with the emergence of the state.

2. The amount of monetary resources available to the state ultimately depends on economic conditions.

3. The state cannot arbitrarily build a financial system, since even the forms of financial relations are determined by economic conditions and this affects the development of state revenues and expenditures.

4. The state can establish only such types of taxes and fees that correspond to the operation of objective economic laws and the needs of the development of productive forces. For example, from January 1, 2001, the Tax Code of the Russian Federation established 28 federal, regional and local taxes and fees instead of the previous 43.

5. The state, given the great influence of finance on the economy, often uses them to increase the impact on economic growth (increase in gross domestic product and employment, lower inflation, etc.).

Stages of development of corporate finance

Corporate finance (financial management) is a discipline that has been actively developing in developed countries since the mid-1960s. Two main factors contributed to this:

1. the prerequisites for the formation of an independent discipline have been formed;

2. there was a need for financial management among the top management of large companies.

Financial management is based on:

1. financial reporting;

2. financial mathematics.

Financial reporting is the information base for making decisions in the field of corporate finance. By the mid-1960s, internal financial reporting standards had been formed in developed countries, and in the 1970s, the first attempts were made to develop reporting standards acceptable to investors from different countries. In 1973 In 2001, the International Financial Reporting Standards Committee (IASC) was formed. became the International Accounting Standards Board (IASB). The era of reporting harmonization and the formation of common standards has begun.

Financial mathematics provides tools for processing information received by users and making quality management decisions on this basis. Financial mathematics was formed on the basis of the results obtained in decision theory, stochastic methods of information processing and portfolio theory.

By the mid-1960s, the preconditions for using stochastic methods to process information coming from the market had formed. The first landmark discovery along this path was made in 1900 by the French mathematician Louis Bachelier, who, based on the movement of stock prices on the Paris Stock Exchange, developed the first mathematical model of Brownian motion, which largely laid the foundation for modern financial mathematics.

In the 1930s, decision theory began to pay attention to the intertemporal dimension. A major breakthrough in this direction was made by Irving Fisher in 1930, in his book The Theory of Interest, who applied the theory of utility to the intertemporal choice of an economic subject. This approach led to the development of the concept of discounted cash flow, which was theoretically substantiated by John Williamson in 1938 in his work “The Theory of Investment Value”. The concept of discounting entered practice in the 1960s after its active support by W. Sharp.

In 1952, Harry Markowitz developed an optimization model that formed the basis of the modern portfolio approach to the valuation of financial assets. The Markowitz model was based on the assumption that the distribution of asset prices is normal. Theoretical interest in this issue was revived after the report of the English statistician Maurice Kendall at a meeting of the Royal Society in 1954. In this report, M. Kendall presented the results of processing data on the shares of British companies taken from the results of trading on the London Stock Exchange. After the work of M. Kendall, interest in the work of L. Bachelier, which had been forgotten by that time, revived. So again, interest in it manifested itself 50 years after its publication. In the 1950s, work was actively carried out in the field of portfolio theory. In 1958, the work of D. Tobin was published, where a risk-free asset was introduced into the portfolio of assets and the separation theorem was proved.

Works in the field of portfolio theory and decision theory led to the creation in 1964 of the first asset valuation model - САРМ (Capital Assets Price Model), which was developed by William S. Sharpe (William S. Sharpe, 1963), John Lintner (John Lintner, 1966), Jan Mossin (1966), Jack Treynor.

In the 1960s, the basic concepts that underlie modern finance theory were developed. The fundamental hypotheses on which modern finance theory is built include the following:

1. Efficient Market Hypothesis (EMH)

2. rational expectations hypothesis (REH – rational expectations hypothesis);

3. no arbitrage hypothesis.

The market information efficiency hypothesis states that market participants absorb all the information when making decisions. The rational expectations hypothesis says that forecasts about the future influence the current decisions of market participants. And the no-arbitrage hypothesis justifies that in an efficient market there is no possibility of obtaining a risk-free profit.

The Market Information Efficiency Hypothesis (EMH) was actively developed by Eugene Fama, and the Rational Expectations Hypothesis (REH) by J. Muth in the 1960s.

The next stage came in the 1970s. In the early 1970s, instability in the economies of developed countries increased sharply. Inflation increased and unemployment soared. The Bretton Woods system of fixed exchange rates, which operated after the Second World War, collapsed. Many large companies in developed countries went bankrupt. As a result of these events, the US financial reporting system was reorganized and in 1973 the FASB (Financial Accounting Standard Board) was organized. In the same year, the IASC (International Accounting Standard Committee) was organized. In the same year, the Chicago Options Exchange was opened, and Black, Scholes and Merton developed the Option Price Model (OPM). In 1976, Roll developed the Arbitrage Price Model (APM).

The increased instability of the financial system has led to the development of new tools to mitigate price risks. Since 1972, financial derivatives (financial derivatives) have come into practice. In 1972 currency were introduced, in 1975-76. - interest, and in 1982. - index futures.

Achievements in the field of financial mathematics, financial reporting and the development of new financial instruments have led to the intensive development of related financial disciplines: financial engineering and financial risk management.

Essence and functions of corporate finance

Corporate finance manifests its essence through functions.

Functions of corporate finance

1. The function of providing financial resources for the activities of the corporation. It has two aspects:

determination of the corporation's need for financial resources for operating, financial and investment activities;

identification of sources of attraction of resources.

2. distribution function- distribution of financial resources by funds of funds and types of economic activity, which should ensure their intended use.

3. control function- control of:

completeness of receipt of financial resources;

targeted use of financial resources;

efficient use of financial resources.

The financial environment of the corporation

External environment activities of a corporation is a set of economic, political, social, legal and other conditions affecting the activities of a corporation.

The external environment is divided into two groups:

macro environment;

Microenvironment.

The macro environment of a corporation

Economic factors of the macro environment:

the level of development of the market economy;

dynamics of economic indicators;

inflation rate;

the level of monetary income of the population, etc.

Political factors of the macro environment:

the current political situation in the state;

the existence of a legal framework, certain regulatory laws;

stability in the country.

Legal factor of the macro environment:

an appropriate set of laws governing the activities of the corporation.

The social factor of the macro environment:

Number and structure of the population;

The level of education of the population;

Work ethic.

Technological factor of the macro environment:

The process of development of scientific and technical progress;

Requirements for manufactured products;

Modernization.

Corporation microenvironment

Consumers of products;

Suppliers;

Competitors;

Financial intermediaries (banks, insurance companies).

Basic concepts financial management

Financial management is based on three main concepts.

1. The concept of current value in terms of economic content expresses the business activity of an enterprise - an increase in capital. The entrepreneur, investing his initial capital, expects to receive new capital in order to reimburse the previously invested capital after a certain period and receive a share of the capital increase - profit. Managing many daily transactions for the purchase and sale of goods (products), services, investment funds, it is important for the manager to determine how expedient it is to perform these operations, whether they will contribute to capital growth, i.e. will they be effective. Their effectiveness is determined by diagnosing the information contained in accounting. Here there is a contradiction between the terms, monetary estimates of advance costs (investments) and economic efficiency. According to accounting data, it is possible to determine how profitable it was for the enterprise to carry out business transactions, but it is impossible to influence the course of events, to find lost profits.

2. The concept of entrepreneurial risk follows from the concept of value, since the objectivity of the current assessment of the forecasts of economic benefits depends on how accurately the forecast is made. Based on statistical measurements of volatility, the forecast of expected economic benefits is given, as a rule, not in the form of a single value, but in the form of an approximate estimate of the present value. Experts may have misjudged the degree of risk.

For this purpose, additional information and extrapolation of past events into the future are required. To reduce the risk, it is necessary to determine the required information, find it, determine the methods of processing, analyze and interpret it.

3. The concept of cash flows. The main content of the concept is the development of an enterprise policy in the field of attracting financial resources, organizing their movement, maintaining them in a certain qualitative state.

The financial manager needs to clearly determine how much cash is needed to pay off liabilities, pay dividends, when an excess of cash will be received, for what period of time the organization (JSC, PO) will experience a cash shortage.

The organization can borrow for this period or invest the amounts of excess cash in short-term investments, and the amounts received from the sale of these investments, then use to make up for the lack of cash over a certain period of time.

Basic concept is the basis for making a decision. There are the following main concepts:

The concept of temporary uncertainty of the corporation's activities. (Going concern concept) A corporation is created by its shareholders for an indefinite period of time to generate income.

The concept of the price of capital. ( cost of capital concept ) This is the price a corporation pays for the attracted sources of capital formation.

Time value of money concept . (The time value of money concept) In the process of movement, money changes its value. This concept is based on the ability of money to generate income in the process of their productive use.

The concept of entrepreneurial risk (combination of profitability and risk). ( risk and return trade off concept ) The higher the yield, the lower the probability of receiving income, i.e. the higher the risk (and vice versa).

The concept of cost alternatives. ( Opportunity costs concept )

In the process of activity, you often have to choose where to send the money at your disposal, knowing at the same time what will be received from each of the investments and what will have to be abandoned. Those. a choice is made from several options.

The concept of agency relations. ( Agency relations concept ) Agents are the subjects of the corporation's activity. Agency relations arise between shareholders and hired managers. The goals of the shareholders are to maximize the value of the corporation. This goal is long term. The goals of managers are more short-term: high wages, retention of a place, increase in status, preservation of privileges, strengthening of power. Due to the difference in goals, conflicts of interest arise between shareholders and managers.

Main Goals and Objectives of Corporate Finance

The main goal of corporate finance- is the growth of the market value of the organization, i.e. the value of its shares to improve the welfare of the owners. Financial management of the company is aimed at the implementation of two main goals: a) intermediate - ensuring the constant solvency of the company as a condition for its existence, and b) final - maximizing the welfare of the company's owners. The achievement of the first is closely monitored by the creditors of the company, the achievement of the second - by the shareholders. To maintain the solvency of the company, it is necessary to coordinate payment flows in such a way that at each moment in time the difference between the inflows and outflows of means of payment does not exceed their cash fund. The insolvency of the company leads to an increase in its debt and threatens bankruptcy. To determine and maintain the optimal share of borrowed capital in the total amount of capital used is one of the important tasks of financial management.

The cost-based model is characterized by the following main features:

- defines the owners as the main subjects in the system of economic interests associated with the activities of the corporation.

- harmonizes the economic interests of the main subjects associated with the activities of the corporation.

- integrates the main goals and objectives of the effective functioning of various services and departments of the organization.

- has a wider range and deeper growth potential compared to other targets.

- harmonizes the current and prospective goals of the corporation's development.

- implements the most complete information about the functioning of the corporation in comparison with other estimated indicators.

- is the most general criterion for the efficiency of using the capital of a corporation.

- monitoring of the market value is one of the most effective means of investors' control over the actions of managers.

Other private goals of financial management:

(one). Ensuring the formation of sufficient financial resources.

(2). Cash flow optimization.

(3). Ensuring profit maximization

(4). Minimization of the level of financial risk.

(five). Ensuring acceptable rates of economic growth.

Agency relations and the theory of asymmetric information

One of the modern directions of contract theory is the agency theory, which considers the main types of opportunistic behavior - adverse selection(Managers can be induced to act for the benefit of shareholders through incentives, restrictions, and punishments. But these means are effective only in cases where shareholders can monitor all the actions of managers.) and moral hazard ( the possibility of unnoticed actions of managers in their own interests, arises from the fact that shareholders in practice cannot control all the actions of managers. ) , - the consequences of their manifestation and mechanisms to combat them.

Agency theory, or agency theory, emerged in the early 1970s. It is based on works on the theory of asymmetric information. The initial stage in the development of agency theory is closely associated with the names of Nobel laureates in economics George Akerlof and Michael Spence, as well as with the names of such famous scientists as Paul Milgrom, Bendt Holmstrom and a number of others.

Premises of the agency theory. The main prerequisites of this theory are the provisions that:

All participants in contractual relations are considered perfectly rational. In particular, they have parametric knowledge about the situation they are in (they do not know what will happen in the future, but they know the structure of the problems that may arise), and their computational abilities are not limited.

Contracting parties have different information about a number of key variables. Thus, although the information is complete, it is distributed among the participants asymmetrically.

The parties to the contract are principal(P), or customer, and agent ( A), or executor. The principal hires an agent acting on behalf of the principal to provide certain services and, in order to facilitate the achievement of the set goals, delegates to this agent some decision-making powers:

Information before and after the conclusion of the contract is asymmetric because:

a) the actions of the agent are not directly observable by the principal;

b) the agent has some results of observations that the principal does not have.

Example 8.1. In the relationship between the doctor and the patient, the doctor acts as an agent who chooses certain actions that affect the well-being of the principal (patient). The doctor has an advantage in knowledge that he can use to inflate the amount of medical services provided beyond the necessary level. Such knowledge of the doctor is hidden information.

Example 8 2. In an employment contract, the employer acts as the principal and the employee as the agent. The use of working time for their own purposes is a hidden action of the employee.

Example 8.3. Shareholders are principals who cannot see in detail whether managers - their agents - make decisions appropriate to the situation or not. The principal-agent problem in this case is called “separation of ownership from control”.

Example 8.4. The insurance company that insured the owner's property against fire is the principal, and the owner is the agent. The opportunistic behavior of the owner in this case consists in non-compliance with fire safety measures. In such insurance cases, the origins of the term "moral hazard" lie.

Note that the model of agency relations is applicable to almost any area of ​​economic and social interaction.

Usually, the interests of the principal and the agent are different, and the agent, pursuing his own benefit, infringes on the interests of the principal.

In this situation, the task of the principal is to develop a remuneration scheme in such a way that the agent acts in the interests of the principal. This scheme is based, in addition to the assumption that the principal knows less than the agent, on another important assumption, namely: the principal always fulfills his promises (for example, to pay remuneration). It follows that the reward scheme should be based on verifiable information, i.e. on information that can be observed by a third party (court), which controls the fulfillment by the principal of his promises.

In this way, The main goal of agency theory is search and analysis of optimal remuneration schemes, including an assessment of the costs arising from the asymmetry of information in certain contracts, and the search for effective mechanisms to minimize these costs.

The costs associated with the implementation of the contract between the principal and the agent are called agency. They include:

a) the cost to the principal of monitoring designed to limit the agent's evasive activity;

b) the costs of the agent associated with the implementation of collateral guarantees. Security costs are often necessary in order for the principal to have guarantees that the agent will not take any action that will harm him;

c) residual losses of the principal, due to the fact that the agent's actions are not entirely aimed at maximizing the welfare of the principal.

ASYMMETRIC INFORMATION

(asymmetricinformation) A situation where not all economic agents have the same information (information). None of the subjects of economic life has access to complete information; at the same time, each of them has information that is unknown to others. The reasons why the same information is known to some and not available to others are very diverse. One piece of information is strictly confidential and exists only in the mind of a particular agent; for example, only the person himself can know what the maximum amount he is willing to offer at auction. Other information concerns things that are objectively measurable, such as the amount of a firm's inventory; however, only this firm, not its competitors, can actually do this. Even when confidential information is shared with others, they may not believe it if independent verification cannot be found. In the same way, for any agent, there are many things that others know about, but he does not know. Thus, each agent is forced to independently choose a strategy of behavior, assuming that others know something that is inaccessible to him, and not representing exactly to what extent his own information is known to others.

There are several main problems that arise in financial markets due to information asymmetry:

the problem of adverse selection (adverse selection);

the problem of the risk of dishonesty (moralhazard);

the problem of costly state verification.

Due to the imperfection of information, dishonest sellers can offer a lower quality (cheaper to manufacture) product, deceiving the buyer. As a result, many buyers, aware of the low average quality, will avoid buying or only agree to buy at a lower price. Manufacturers of quality goods in response, in order to separate themselves from the average seller in the eyes of the consumer and retain the market, they can start trademarks and certification of goods. An important role of trademarks in a developed market economy is to serve as a sign of stable quality.

Consumers, evaluating the quality of products, make up the reputation of markets and sellers. The advent of the Internet has greatly facilitated the exchange of information among consumers. Allowing you to find out directly the characteristics of a product or its reputation, the Internet reduces the asymmetry of information.

Responsibilities of the Chief Financial Officer

IN general view the implementation of the function of the Financial Manager should ensure the most efficient flow of finance between p / p and fin. market, which is the main source of external financing of the company in the conditions of market relations.

The main functions of a financial manager are as follows:

1. F-th analysis and planning, collection and processing of accounting data for internal financial management and external users;

2. Making long-term investment decisions and determining the most optimal asset structure.

3. Making long-term decisions on the choice of sources of financing and forming the company's capital structure, developing a capital raising policy on the most favorable terms for the company and in the most effective combination of its own

and borrowed funds, development of dividend policy;

4. Management of a portfolio of securities;

5. Management of current assets of the company;

6. Management of current liabilities;

7. Other functions related to the protection of assets (insurance), taxation, consulting, creation of an internal control and information support system, reorganization of the company.

The main tasks of financial managers:

1. Development of a system of prospective financial indicators of the corporation's development.

2. Attracting financial resources on the most favorable terms.

3. Planning the movement of cash resources.

4. Development of financial standards.

5. Development of the corporation's credit policy.

6. Development of the investment policy of the corporation.

7. Development of monetary policy.

The behavior of enterprises in market conditions of management is changing. More and more enterprises are merging into various integrated corporate structures.

The goals of combining enterprises into corporate structures can be

• cost minimization;
• increase in profit;
• expansion of activities;
• strengthening investment potential;
• reduction of financial and tax losses;
• rationalization of management, etc.

Corporate finance management and compilation budget plans in a corporation primarily depends on the goals and distribution managerial functions between companies. Correct and proper financial planning and forecasting in a corporation ensures its efficient functioning. As a rule, in corporate structures the corporation's cash flows are managed centrally. The "parent company" assumes the function of managing bank accounts and cash desks of all enterprises of the corporation.

Financial planning and forecasting in a corporation

Corporate cash flow management includes:

• planning of corporate funds for a month, quarter, year;
• consolidation of the cash budget;
• optimization of financial flows of the corporation;
• cash flow accounting;
• deviation analysis;
• reducing the need for borrowed funds;
• current asset management.

The budget model depends on the type of corporation (vertically integrated corporation, horizontal or mixed), and the preparation and analysis of the income and expenditure budget of the corporation depends on the management system in the corporation.

The main purpose of the management reporting of a corporation is to present the financial results of the activities of related enterprises as a whole. The preparation and analysis of the income and expenditure budget of a corporation includes the following steps:

• definition of goals and mission of the corporation;
• formation of the financial structure of the corporation;
• development of a budgeting model;
• budget policy development;
• the procedure for the formation of consolidated financial statements, the methodology for excluding intergroup transactions;
• development of procedures for analysis, control and decision-making;
• selection and implementation of an automated system.

To simplify the tasks of budget consolidation and management reporting, it is necessary to choose an automated system. The use of programs based on 1c corporate finance management, for example, the WA: Financier software product, can significantly reduce the time for summarizing information, improve the quality of reporting for making informed management decisions.

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The concept of financial balance.financial balance commercial organization - is the balance of its financial resources and directions of their use. Often it is also called in a simplified way - the balance of income and expenses or the balance of cash income and expenses, which is not entirely correct, since cash income can mean both the entire cash proceeds of the company, and only certain parts of it.

The main problem of this type of balance is what to consider as financial resources or what to attribute to the income of the financial balance. In practice, there are always various subtleties regarding certain types of cash income.

In addition to the "theoretical" aspect of the problem of understanding the financial resources of a commercial organization, there is also a practical aspect that is associated with the process of managing the company's cash flows. In this sense, we can say that the financial resources of the company include its any cash income, the use of which is the object of management by the management of a commercial organization. Cash income intended for the acquisition of material costs for production and payment wages cannot be freely transferred to any other purposes of the company. Otherwise, the production process will be disrupted, and profits will be jeopardized. At the same time, any other cash income of the company usually does not have a firm (“hard”) assignment to some direction of use, and therefore, it is necessary to make appropriate management decisions on their account every time. With this in mind, the financial resources of a commercial organization can be defined as follows: financial resources - this is the cash income of a commercial organization, which it can relatively freely dispose of without violating its main production activities.

The main types of own financial resources of a commercial organization. These include profit, depreciation and non-operating income. The need to include all of them in the financial balance stems from the fact that:

The total net income exists not only in the form of legal profit, but also in the form of other legal monetary income: interest, dividends, rent, etc.;

The process of capital reproduction does not in practice have clear boundaries between simple and extended reproduction. For example, the replacement of one piece of equipment with another is often at the same time the provision of conditions for both simple and extended reproduction of capital. Therefore, monetary sources for ensuring this kind of reproduction should be taken into account in unity. In practice, this is expressed in the fact that profit is used for the purpose of expanded reproduction, always together with depreciation deductions, which theoretically are a source of simple reproduction of the means of labor (fixed capital);

Profit can be used for the purpose of simple reproduction, for example, when it is spent on covering various kinds of losses;

Depreciation allowances may be excessive for the purposes of simple reproduction, since prices for the same equipment usually decrease over time, or when new production capacities are created due to depreciation and old ones are no longer reproduced, for example, due to the cessation of production of some goods;

There are cash incomes in which profit and depreciation are simply inseparable at all. These include, in particular, rent. Rent is the gradual (annual) repayment of a loan in the form of equipment, premises, land plots etc. by simultaneously paying interest income and a part of the principal debt equal to the annual depreciation of the fixed capital.

Non-own financial resources. These include loans received by the organization and funds that come from the state budget (if there are grounds for that).

The difference between loans and budget financing is that interest must be paid for loans, and at the end of the loan term, the loan taken must be returned to the bank (or other lender). Budget financing is carried out on an irrevocable and free basis, but it takes place only if it is provided for by the law on the state budget. In practice, budget financing of commercial organizations is carried out only if the latter carry out some necessary for state power functions, such as the construction of government facilities, etc.

Financial balance expenses. In the most general form, "financial" expenses are expenses for the purpose of increasing the capital of a commercial organization, for paying its owners, as well as for social (non-production, non-commercial) purposes.

The cost of increasing the capital of a commercial organization includes the cost of purchasing new equipment, building new premises, increasing working capital and reserves, as well as investing in income-generating securities or renting out property and lending money.

In practice, in addition to expenses that increase capital, there are naturally expenses that lead to a decrease in capital. The costs associated with a decrease in capital are the payment of dividends, interest on loans, the return of loans, the payment of taxes and fees to the state, insurance payments, etc.

Expenditures for social purposes, in principle, also reduce the capital of the company. They include expenses for bonuses to the management and personnel of a commercial organization, for charitable purposes, for pension insurance, etc.

In a summary form, the income and expenses of the approximate financial balance can be presented in the form of the following table (Table 3).

Table 3 Financial balance of a commercial organization

financial income	Financial expenses
1. Income from own activities, including:	1. Expenses that increase capital, including
A) From economic (production) activities: - profit from the sale of products; - depreciation deductions; - profit from the sale of surplus or retired property, etc.	A) Household expenses: - purchase of new equipment; - financing of industrial construction; - increase in working capital; - increase in material reserves, etc.
B) From financial activities: - received rent; - income from securities (interest, dividends); - interest on loans issued and their return; - exchange rate difference on financial transactions; - increase in share (authorized) capital, etc.	B) Financial expenses: - investments in securities; - issuance of loans; * - accounts receivable, etc.
2. Received credits and loans, including: - long-term loans; - short-term loans; - increase in accounts payable, etc.	2. Expenses that reduce capital, including: A) commercial nature: Payment of dividends or part of the profits to the owners of the company; Payment of interest and return of previously received loans; insurance payments; Compensation for damages and losses, etc.; B) Social character: Bonus; Social payments; Charitable assistance, etc.
3. Targeted budget financing (if any)	3. Payment of taxes and fees to the state budget at the expense of financial income
Total income	Total expenses

It should be noted that, unlike the balance sheet, the financial balance sheet of a commercial organization does not have a mandatory form for all organizations. The Company independently establishes the composition and structure of income and expenses of the financial balance, depending on the specifics of its own activities and its own needs of financial planning and management. For this reason, in the financial literature you can find a wide variety of forms of financial balance, the essence of which, however, remains unchanged for all their diversity.

5. Corporate finance management. The financial analysis

A commercial organization necessarily manages its own finances, which is reflected in the fact that it carries out one or another financial analysis, financial planning and pursues its chosen financial policy.

Financial analysis is an assessment of the effectiveness of the functioning of the company's capital. The main indicators of the overall performance of the company are its overall profitability and equity growth.

A more detailed financial analysis includes an analysis of the structure of capital, its turnover, analysis of production and distribution costs, etc.

Concept. Financial analysis is an integral part of the process of managing a company's finances, or its capital.

The financial analysis a commercial organization is an assessment of the effectiveness of the functioning of its capital.

Financial analysis can be considered as the initial and a kind of final stages of the management process. This is due to the fact that before making any important decision under normal (usual) conditions, you must first analyze what is available. On the other hand, when a management decision has already been implemented, it is important to see what its results are in comparison with either the goal or the initial conditions.

the effect - this is a useful result, and in our case - first of all, the size of the profit received and the increase in the initial capital.

Efficiency - this is the ratio of the effect to some base (to costs, to the initial value of profit, etc.).

Efficiency mark is a comparison of performance indicators with those adopted in management process criteria (goals, standards, reporting data, indicators of other organizations, etc.).

Components of financial analysis. Like any analysis, financial analysis includes:

A general analysis of the work of a commercial organization is an analysis of the functioning of its capital as a whole;

Structural analysis is an analysis of the functioning of individual parts of the capital of a commercial organization, both economic (fixed capital, working capital, etc.) and organizational (all kinds of structural parts of the company).

General financial analysis. Such an analysis is carried out on the basis of the company's financial statements - its balance sheet and appendices to it, in which, in particular, the sources of profit and its distribution are deciphered.

The composition of the company's liabilities and assets, the financial results of its activities, etc. are analyzed. If the balance sheet is drawn up without violations, then its analysis allows you to determine with a high degree of certainty whether the company is successfully operating in the market, or whether it has problems.

The main indicators used in this analysis are:

Profitability of a commercial organization;

Capital gain of a commercial organization.

Profitability of a commercial organization is the ratio of its profit to the value of its capital. Profitability can also be called: profitability, profitability or rate of return. General formula for calculating yield:

D = P. 100%,. to

where q is the yield (usually as a percentage);

P - profit;

K is capital.

In financial analysis, depending on its specific goals, it is used a large number of varieties of the rate of return, differing in the composition of the numerator and denominator of the above formula. For example, gross profit, net profit, or even profit with the addition of other types of net income included in the costs (expenses) of the company can be used as profit. As capital, the value of all functioning capital, or only equity capital, or even some parts of the capital can be taken.

Increase in own capital of a commercial organization -

is an increase in equity over a period of time, usually a year. Capital gain in absolute terms is the difference between the value of equity at the end of the year and its value at the beginning of the year. The increase in equity capital in relative terms is the ratio of its absolute increase to its initial value:

DC \u003d K 1 ~ K 0 * 100%,

where DK - increase in own capital (in percent);

K 1 - equity at the end of the year;

To 0 - equity at the beginning of the year.

Structural financial analysis. The task of such an analysis is to analyze the performance of all components of the capital of a commercial organization. Financial analysis includes, in particular, analysis of:

Capital structures: ratios between own and borrowed capital, fixed and working capital, etc.;

The efficiency of the individual parts of capital: their turnover (turnover period, turnover rate), return, etc.;

Mobility of parts of capital, i.e., the possibility of their transformation into money;

Costs of production and circulation of goods and services produced, etc.

6. Financial planning and forecasting

Financial planning is an assessment of the financial performance of the company for the future.

Financial planning includes both calculations of financial income and expenses for the coming period, and their mutual linking through the preparation of a financial balance.

The main methods of financial planning are the direct calculation of a financial indicator, the use of trends and economic and mathematical models.

Concept. Financial planning and forecasting - this determination of indicators of capital and profitability of a commercial organization for the coming period (usually a year ahead).

Since the difference between planning and forecasting has already been mentioned, in the future, for brevity, we will call this stage of financial management only planning.

Financial planning is the next stage after financial analysis. Usually, based on the analysis, some conclusions are drawn regarding the state of affairs in the company and goals and objectives arise that should be achieved next year. Quantitatively, these goals and objectives are supported by appropriate economic calculations, which make it possible to judge whether the goals set are achievable and under what conditions. Therefore, financial planning can be considered both as a prerequisite for setting the company's goals for the future, and as a financial justification for such goals.

Components of financial planning. IN In its most general form, financial planning includes:

Planning of financial indicators;

Preparation of financial balance sheets to link financial indicators.

In other words, it is not enough just to make the appropriate calculations of financial indicators for the next year. Each indicator is calculated on the basis of its own information and methods, and therefore it is often not directly related to other calculated indicators. But capital is a single whole, and therefore it is imperative to bring the calculated values ​​of indicators obtained into a kind of “checking” tables, that is, to present their entire set in the form of a single balance sheet and thereby reveal their correspondence to each other and as a whole.

Modeling method. This method is very diverse, since the mathematical models used make it possible to calculate the required indicator depending on a larger number of factors than just time.

The modeling method is relatively rarely used for financial planning at the level of a commercial organization and is mainly used at the level of the economy as a whole and for scientific purposes. However, when it comes to large companies (for example, transnational corporations) and their "secret" developments, the modeling method often becomes the only possible one, since it allows you to make important strategic decisions without any detailed calculations and on the basis of the most aggregated information.

7. Company financial policy

capital profit financial investment

Financial policy is a relatively long-term option for the management of a commercial organization in relation to its capital and profits.

Typically, financial policy consists of:

credit policy;

Accounting policy;

Emission policy;

Net profit distribution policies;

dividend policy;

Investment policy;

tax policy.

Concept. A commercial organization usually has a fairly wide field for choosing management decisions in all aspects of its activities in the market. In this sense, financial policy is the chosen option for the company's actions in the market, and the types of financial policy are nothing more than financial policy in a certain area of ​​the company's activities.

financial policy - this is the choice of a course of action for the company in accordance with its capabilities and interests, as well as the conditions of work in the market from total number legally permitted options.

Types of financial policy. In each area of ​​financial relations, a commercial organization pursues its own policy, which is usually given the name of a particular financial area. The main types of financial policy of any commercial organization are as follows (Fig. 7):

Credit policy;

Accounting policy;

Issuing policy;

Net profit distribution policy;

dividend policy;

Investment policy;

Tax policy, etc.

Rice. 7. Main types of financial policy of a commercial organization

Credit policy.Credit policy is the policy of a commercial organization in the credit market. Typically, a company takes bank loans and pays a fee on them - interest, but at the same time keeps its temporarily free cash in bank accounts and, under certain conditions of their storage, can receive interest income from the bank for this. Under some circumstances, the company itself can give loans in different forms other market participants and receive interest income from this.

This whole complex set of issues related to loans and payment for them, or income from them, occupies an important place in the financial policy of the company, since the modern process of production and sale of goods is simply impossible without credit relations. To a certain extent, we can say that everyone in the market lives on credit. Non-payment of debt obligations often has catastrophic consequences for a commercial organization - creditors declare it bankrupt, its property is sold, and the company ceases to exist legally.

This makes clear the paramount importance of credit policy for any commercial organization.

Accounting policy.Accounting policy - this is the policy of a commercial organization related to the choice of accounting methods existing under the law in general and its individual sections.

The main components of the accounting policy is the choice:

Methods for calculating depreciation deductions (uniform or accelerated depreciation);

Methods for accounting for revenue from the sale of goods (upon payment or upon shipment to the buyer), etc.

The choice of one or another accounting policy is connected with the peculiarities of the company's functioning, the nature of its products, the speed of updating the assortment, etc. For example, if the products manufactured quickly become obsolete, then it is necessary to use accelerated depreciation of the equipment on which it is created. Otherwise, the transition to the production of a new product on new equipment will mean that the old equipment will be unnecessary, although its cost has not yet been fully amortized, and as a result, the company will suffer large losses.

Issuance policy.Issuing policy - This is the policy of a commercial organization in the field of issuing its securities.

The issue of securities is a source of own (in the case of the issue of shares) or borrowed (in the case of the issue of bonds) financial resources for the company.

Management decisions in this area include:

The choice of the method of raising capital in the company - taking loans or issuing securities;

The choice of the type of issued securities depending on the capital they represent - shares or bonds;

Selection of specific types of securities and their market characteristics;

Choice of the timing of the issue;

The choice of the market and its professional intermediaries providing emission, etc.

The emission policy is carried out only by those commercial organizations that resort to the issue of their securities. The most important modern type of commercial organizations - joint-stock companies - are the issuer of securities by their legal nature, and therefore this kind of commercial organizations is always inherent in the issuance policy.

Net profit distribution policy. This type of financial policy is associated with two groups of management decisions:

By dividing net profit by the part paid to the owners of a commercial organization (in the case of joint-stock company it is dividends), and on the reinvested part;

The choice of directions for using the profit that remains in the company.

This policy is directly related to the dividend policy (discussed below), as it determines the total amount of dividends paid to shareholders.

The decisions made by the management of the company regarding the direction of using the profit that remains in it, ultimately determine the future success or failure of the company in the market.

dividend policy.Dividend Policy - This is the policy of dividend payments of the joint-stock company. This policy applies only to joint-stock companies. It includes a set of questions related to:

The amount of dividends paid;

Their distribution by types of shares issued by the joint-stock company;

The order of their payment;

Payment terms, etc.

An important role of the dividend policy is that it is directly related to the interests of shareholders, and through this - to the prices of the company's shares on the stock market. The company's dividend policy must be clearly justified and understandable to shareholders and all market participants.

Investment policy. Investment policy - it is the policy of a commercial organization aimed at using the most effective investment decisions.

The investment activity of the company is connected with the profitable investment of its capital. Capital is usually invested in new production, in profitable securities, or is loaned out on favorable terms.

Having a certain capital (reinvested profit, accumulated depreciation), the company selects the directions (projects) of its investment, focusing on their highest profitability, and also taking into account its other goals, which often cannot be immediately quantified in profit, and bring it only later. Such goals include expanding the company's share in the market of a certain product, subordinating it to other companies, expanding its activities to other areas of the market, etc.

Tax policy.Tax policy is a policy of a commercial organization aimed at reducing tax payments.

A decrease in tax payments to the state directly leads to an increase in net profit, and therefore any market participant is interested in reducing taxes. The state uses taxes not only to obtain the cash income it needs, but also as an economic lever to stimulate economic activity in general or selectively for some groups of market participants.

Reduction of tax payments to the state can be achieved in two ways:

Using statutory differences in taxation;

Tax evasion.

Tax evasion is severely punished by the state: companies pay huge fines, and relevant officials are subject to criminal penalties.

Exploiting existing differences in taxation includes opportunities to reduce taxation by:

Changes in the location of the legal address of the company (usually in different regions there is different level local taxation);

Changes in the legal form of the organization (profit tax and other taxes may vary depending on which group of commercial organizations the company belongs to);

Transfer to another type of commercial activity (different goods may be taxed differently);

Use of available tax incentives;

Prevention of double taxation, etc.

8. Investment activity of a commercial organization

Investing in broad sense there is the use of financial resources of a commercial organization for purposes not related to cash payments to the population. Investing in the narrow sense is the use of the financial resources of a commercial organization as capital, i.e., a source of net income.

Capital investments are an integral part of investments.

They represent the investment of financial resources in the construction of buildings and structures, the purchase of equipment and the costs associated with the design of facilities under construction.

The main financial sources of investments are own and borrowed funds, as well as funds from the sale of securities.

Investments are divided into direct and portfolio, real and financial.

Investments bring income to the market participant, but are usually associated with the emergence of investment risk, i.e., the possibility of losing part of the invested capital.

Concept. From an economic point of view, investment is a value used as capital, that is, as a source of net income in any of its market forms (profit, interest, rent, rent, price difference, etc.). However, a commercial organization carries out its activities not just in the market, but also in a society of people, and therefore it necessarily spends part of its income on social needs of a material nature, for example, on the construction of social facilities, etc. Therefore, in a practical sense, a broad definition of investment can be the following: investments a commercial organization is the use of its financial resources to expand its own activities and increase profits, as well as social investments that are not limited to cash payments to the population.

In what follows, for brevity, these goals will be referred to as “investment” goals.

In a tangible form, the investments of a commercial organization represent the funds at its disposal or any other property used for the specified purposes.

The cash of a commercial organization may consist of its cash in bank accounts and loans received. As an investment, funds can be invested in the purchase of tools, in new construction, in the purchase of securities, in bank deposits, in the purchase of trademarks, etc., i.e., in any market assets, the use of which meets the objectives of investment.

Non-monetary property used as an investment usually includes equipment and premises, securities, licenses, trademarks, etc.

So, outwardly, investments are funds invested in market objects for investment purposes, or any other property used for the same purposes. The subtlety of this understanding of investments lies in the fact that, in their market form, investments and investment objects are one and the same, since there is nothing on the market but the same money and property. For example, production equipment is bought with money. Money acts as an investment. But the purchased equipment is also an investment, only in a different material form. Both are one and the same capital (value) in their different forms aimed at making a profit. If the money is used to buy equipment for the hospital, then there is investment in social purposes. Accordingly, the capital (value) represented by money is eliminated from the process of its further reproduction, since it is used for the purpose of social consumption. This kind of investment is also called "non-productive" investment.

Where the definition of investment is based on external forms existence of capital, a logical contradiction arises, since in this case the investment and the object of investment are no different, or, to put it differently, the concept is defined through the forms of its existence, and not through its essence.

Investment activity, or investment - is a set of actions of a market participant associated with the use of capital and profits as an investment, or, in short, associated with an investment.

Investor is a market participant engaged in investment activities. As a rule, all commercial organizations are investors, as this is required by the process of expanding their commercial activities.

In a legal sense, investors can be citizens, any legal entities, state authorities and organizations. From the point of view of this state, investors can be national and foreign.

The concept of capital investment.Capital investments - these are investments in fixed assets (funds), i.e., these are investments of capital and profits mainly in the purchase of the necessary equipment (machinery, instruments, etc.) and in the construction of buildings and structures, as well as design costs associated with construction .

Capital investment is one of the constituent elements of investment, but it is of the utmost importance. Capital investment has two economically important distinguishing features:

They are investments exclusively in tangible market assets; investments in securities, other financial assets (deposits, loans, etc.) or intangible assets (trademarks, etc.) do not qualify as capital investments;

They are investments aimed at increasing the capital stock of the country, i.e., increasing the most important wealth of any prosperous society.

Capital investments are divided into two groups:

Production capital investments are capital investments associated with simple and expanded reproduction of the capital of commercial organizations;

Non-productive capital investments are capital investments aimed at maintaining and increasing the size of fixed assets of non-profit organizations (this usually includes non-profit organizations healthcare, education, culture, etc.). The concept of capital investment has its origins in the socialist economy, in which there was no private capital, and all investments were made in order to increase either the fixed assets of material production or the fixed assets of the social sectors of the economy. In the modern economy, investment in the legal form of capital investments is possible only on the basis of the conclusion of a state contract, that is, when investments in fixed assets are made by the state. For commercial organizations, investing in the form of capital investments as a legal action no longer exists, although this, of course, does not cease to exist in itself investing in fixed assets.

The main sources of investment. Legally, investment sources are divided into three groups (Fig. 8):

own funds - this is the part of equity capital used for the purpose of investment; Own funds include:

* profit;

* depreciation charges;

¾ means of the reserve and other special funds of the organization;

borrowed funds - these are funds and other property that a commercial organization has on a temporary and paid basis, or on the basis of loan and credit agreements; loans include:

Commercial, or commodity, loans (loans from other market participants when buying goods, etc.);

Bank loans;

Loans from the state;

involved funds - is cash from the sale of shares and units.

The attracted funds, although they are indicated in the law on investment activity as an independent source of investment, have a dual nature in economic terms. They can be classified as borrowed funds because they are attracted from the market, and not created in the commercial organization itself. But since the funds raised go into the authorized capital of a commercial organization, they become its own capital and can be attributed to its own funds.

Rice. 8. Sources of investment

Types of investments: direct and portfolio. Legally investments are divided into three groups:

direct investments - these are investments in the production of goods and services, as well as investments in shares, if the investor's shareholding exceeds 10% of the authorized capital of the joint-stock company;

portfolio investment - these are investments in securities, except for investments in shares, which are included in direct investments;

loan investments - is the use of investor funds in the form of loans and credits.

In practice, loan investments are the subject of independent consideration as an object of the credit market, therefore, when talking about investments, they usually mean only direct and portfolio investments, although for a commercial organization all investment groups are relatively equivalent.

The division of investments into direct and portfolio is the division adopted in international investment statistics in terms of what place the investor occupies in relation to the process of managing his investments. In the case of direct investment, the investor is usually directly involved in the management of his investment, while in the case of portfolio investment, he has little or no involvement in the management of it.

Types of investments: real and financial. From the point of view of the type of investment object, investments are conditionally divided into two large groups:

real investment - this is an investment in tangible assets used in the production process or making a profit, i.e., primarily in the means of production;

financial investment are investments in financial assets, which mainly include securities and investments in bank deposits.

The need for such a division of investments stems from their heterogeneous economic nature. Real investments themselves create (they bring) net income. They increase the material capital of a commercial organization.

Financial investments bring interest or other net income, which they themselves do not create, but only appropriate. Their economic nature is fictitious, since as soon as they cease to generate interest income, they cease to exist at all, because, on the one hand, they depreciate in the market, and on the other hand, they do not represent any material utility for a person.

A commercial organization that produces goods or services is usually dominated by real investment. However, on the scale of the entire market, financial investments predominate, since, unlike real investments, they do not have material boundaries for their market growth and therefore are able to increase without limit.

investment income. Typically, investment income takes the form of a profit received from a commercial project, or a percentage (dividend) received from investing in securities.

Any investment project (or investment decision being made) is evaluated in terms of the income that it brings in a certain number of years. The general approach is as follows: cash receipts from the implementation of the investment project (usually in the form of profit and depreciation) must exceed the size of the initial investment by a given amount, which will be the net income from investment.

Methodologically, the problem is not only how to calculate the profit and other income from investments, but also how to bring these annual cash receipts to a single base, since, as you know, money depreciates and the future ruble is not equal to today's ruble.

Economic science has developed various methods that are used in investment design and analysis and help the investor make a more or less economically sound management decision regarding the investment of his free capital.

Investment risk.Risk - this is the possibility of loss of capital (profit) with one or another probability. Quantitatively, risk is the amount of value loss for a given level of probability of this loss. Risk always exists, because it reflects the uncertainty (uncertainty) of the future. The future cannot be known, it can only be predicted.

Investment risk is the risk involved in investing. Investments are always associated with certain risks, since investments are always directed to the future, that is, usually several years ahead.

In a normal case, a commercial organization assesses its investment risks in advance and sets an acceptable level for itself, the excess of which it considers unacceptable, as a result of which the corresponding investment project of the company may be rejected, despite some other attractive features.

Conclusion

Thus, for current management, the scale of the enterprise matters. Large forms Entrepreneurships, such as corporations, are characterized by the complication of material, informational and monetary flows that flow inside and outside them, the introduction of several levels of management, and also a complex form: corporations often exist in the form of an entity consisting of several companies.

Corporate finance is inextricably linked with the processes of capital management, that is, decision-making in a commercial organization, and therefore they are often considered only from the point of view of management and are then called financial management.

Corporate finance occupies a leading place in relation to public and personal finance, since only they, by and large, are the ultimate source of all financial resources in society.

Finances occupy a special place in economic relations. Their specificity is manifested in the fact that they always act in monetary form, have a distributive character and reflect the formation and use of various types of income and savings of economic entities in the sphere of material production, the state and participants in the non-productive sphere.

Financial relations exist objectively, but they have specific forms of manifestation that correspond to the nature of production relations in society. In modern conditions, the forms of financial relations are undergoing major changes. The formation of the market and entrepreneurship in Kyrgyzstan involves not only the denationalization of the economy, the privatization of enterprises, their demonopolization to create a free economic sector, the development of competition, the liberalization of prices and foreign economic relations of enterprises, but also the financial recovery of the national economy, the creation of an adequate system of financial relations. Enterprise finance, being part of common system financial relations, reflect the process of formation, distribution and use of income at enterprises of various sectors of the national economy and are closely related to entrepreneurship, since an enterprise is a form of entrepreneurial activity.

FROMlist of used literature

1. Finance, money circulation. Galanov V. A.

2. Inozemtsev V. Goals and structure of the corporation as the basis of its competitiveness // Problems of theory and practice of management. - 2001.- No. 5.

3. Kaplan Robert S. Balanced Scorecard. From strategy to action / Kaplan Robert S., Norton David P. - M .: CJSC "Olymp-Business", 2003.

4. Slepov V.A. On the relationship of financial policy, strategy and tactics / Slepov V.A., Gromova E.I. // Finance. - 2000. - No. 8.

5. Financial management / ed. acad. Stoyanova E. S. - Ed. 3, revised. and additional .. - M .: Perspective, 1998.

6. Horn J. K. Van. Fundamentals of financial management. M.: Finance and statistics. 1997.

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