The Research On Corporate Financial Rights Budget Management

Financial rights originate from original property rights, and are associated with the power of original property rights subjects. Financial rights perform as one subject's rights to financial resources, including the rights of profit, investment, financing, pre-financial decision-making, financial supervision and so on. On the basis of the full possession of the financial remuneration and distribution rights, original property rights subjects (client) have to decompose other property rights, allocate property rights and then implement them in view of the limitations of their own knowledge, information, operation and so on. Corporate governance is to solve financial rights decomposition problems. There are certain corresponding relationship between financial rights decomposition and the budget decision-making, execution and control, supervision and evaluation in corporate governance. In fact, budget management is a system reflecting the decomposition, allocation and implement of property in corporate governance. The specific decomposition and implement of decision-making, enforcement and supervision rights of financial rights are to the management process of the budget decision-making power, enforcement power and supervision power of the budget management. Budget management system which is the specific operating system runs through the decomposition of financial rights, the allocation of financial rights and the corporate governance.This article attempts to use the research approach of a combination of normative analysis,empirical analysis and a combination of theoretical research and survey research to establish the financial rights budget management system under the guidance of economic sociology theory, enterprise theory, corporate management theory, financial management theory, total value management theory,"financial rights flowing"and so on. This article divides corporate budget management system into the first order and binary subsystem including financial rights budget and activity budget, and studies the operation of the property-based enterprise budget system step by step, using decision-making, implementation and control, supervision and evaluation ,which is three links of systemic circulation of corporate budget management as the starting point.Financial rights budget is the power budget system which focuses on the (financial) rights allocation, with emphasis on organization framework,function division and power disposition. At the same time, property budget also has non-dominant financial budget clues; activity budget is financial resources budget system which focuses on the financial (rights) allocation, with emphasis on the allocation of financial resources due to technical constraints on the production and operation process. At the same time, activity budget also has non-dominant power budget clues. The investors are the main budget subjects in financial rights budget, while the general manager of the enterprise is the main budget subjects in activity budget activity. The main research content in the paper includes several topics as follows:(1) First, sum up the theories foundation and logic of the financial rights budget management. The theories foundation mainly includes enterprise theory, corporate management theory, financial management theory, total value management theory,"financial rights flowing"and so on, which provide support for the theory and implementation of the financial rights budget management. Second reason that implementing the financial rights budget management system can ease and resolve functional contradictions of the traditional corporate budget management system, put forward the theory framework of the financial rights budget management, and then put forward enforcement steps and programs of the financial rights budget management system operation.(2) On the budget decision, make the risk of the corporate budget decision process as the starting point, analyze the configuration mode of the enterprise financial rights budget management system decision-making authority and influencing factors of mode choices, conduct a major study on the main links including the implementation and authorization of the enterprise financial rights budget management system decision-making authority, and strive to focus on the guarantees for organization and entitlement management in the operation link of the financial rights budget management system. On the implementation and control of budget, study the elements and motivations of the strategy transmission in the implementation of corporate budget strategy. Establish and improve budget responsibility mechanism,deviation-rectification system and report mechanism in the financial rights budget management system. On the supervision and evaluation of budget, rationalize the relationships between"the new three organizations"and"the old three organizations", design the financial rights budget supervision mechanism,activity budget supervision mechanism and the bridge for the communication between them, analyze the solutions of the difficult points of budget supervision in theory; establish appraisal tools taking BSC as the main body in the financial rights budget management system, and analyze the solutions of the difficult points of the enterprise financial rights budget management system efficacy evaluation in theory at the same time.(3) By means of questionnaire survey and empirical research, confirm the necessity, probability and increase of value enhancement of the implementation of the financial rights budget management system, and search out the main factors of influencing corporate budget management, which offer us clear directions of improving active corporate budget system.The innovations of this research are as follows: First, establish innovatively first order and binary system of the financial rights budget management and system operational frame. And go into the difficulties and emphases of three important links including the specific operation of the financial rights budget decision-making, implementation and control, supervision and evaluation; Second, innovate the relation between budget organization and organization. Clarify about the responsibilities of budget management committee and budget office, and offer to establish budget management committees including strategic committee, compensation committees, audit committee, nominating committee and so on; Third, innovate the contents of budget information disclosures of capital market. The corporate should provide the implementation and result information compulsively, which is related with the financial rights budget, reflecting the results of strategy implementation, and focused on capital budget and special decision budget; while the corporate should provide the information voluntarily, which is related with activity budget and focused on value creation amount reflecting the perfection of internal control system.Government is the defender of the capital market order, but the capital market system the existing listed companies comply with is not aimed at the situations of Chinese corporate governance structure to safeguard medium and small-stock shareholders and creditors in the corporate governance mechanism. We can conclude that the government can specify information transmission and report procedure of disciplining the budget strategy implement process and results of the listed companies to achieve the purpose of increasing strategic information transmission power of enterprise budget. Therefore, the financial rights budget management theory serves as a guide, which can gradually improve the norms such as"The criterion for governance listed company","The guide for information disclosure management system of listed company"and so on, with emphasis on doing something with the protection of medium and small-stock investors management and creditors management. Property-based enterprise budget theory serves as a guide, which can greatly facilitate the construction and development of the manager market.