New Factor Capital, Transformation Of Production Mode And Innovation Of Financial Relationship

Knowledge economy is a new economy form arisen sadly. The new economicgrowth theory (or endogenous economic growth theory) and knowledge economystudies show that talent, technology, knowledge, information are the most activefactors of production leading the operation of knowledge economy, they are graduallybecoming the core of productivity of country and enterprises. The capitalization ofthese emerging factors of production for new factor capitals (human capital,technology capital, knowledge capital, information capital) is a kind of inevitabletrend. The emergence of new factor capitals will cause the transformation ofenterprises’ production means, and then cause the change of company financialrelationship. Thus, factor capital theory is about to enter a stage of integrating intoenterprises’ current needs and its development and application. At the same time, newproduction factors have gained widely attention in the process of economic operationand enterprise operation: formulation and implementation of national policies andlaws and regulations on talent, technology, knowledge, information involved in thedistribution of the value; system for the protection of intellectual property andinformation resources are formed basically; enterprises take various forms to attracttalented people to join, increase investment in research and development, go ontechnical innovation and knowledge management, improve the overall informatizationlevel. Therefore, how to make static talent, technology, knowledge and informationdynamic is the key for new production factors to exercise the value creating function.Mode of production and financial relationship are support for making new productionfactors and new factor capitals dynamic.Enterprise operation is the result of moving productivity, relations of productionand mode of production, i.e, only interacting to each other between three can createvalue. The rapid development and widespread application of science and technologydiversify enterprises’ production factors and capital forms, the functions of variousfactors of production and their mutual relations change tremendously. In the era ofcapital, instead of material capital and financial capital, new factor capitals havebecome the most important business productivity, economic relations generated frominput and output of new factor capitals have become the most important productionrelations. At the same time, the deepening of social division of labor prompt the transformation of mode of production, new production modes and business modelsbegin to appear. Thus, enterprises’ financial relations change greatly. According toabove reality and understanding, this paper studies corporate finance theory in modernsociety of science and technology, including the mechanism, rules and application etc,i.e, based on the theory of production mode, enterprise growth theory and factorcapital proposition, using the standard analysis method, the fact analysis method andcomparative analysis method, to discuss that development and innovation ofproduction factor initiate reform of mode of production and changes and performanceof financial relationship in a dynamic perspective.In this paper, the main research contents are as follows:(1) the transformation of enterprises’ mode of production and evolution offinancial relationship, that is the principle of transformation of production means andevolution of financial relations, the logical development of production mode;(2) theprocess of capitalization of production factors, including the capitalization ofproduction factors, new factor capitals’ effect on corporate governance and financialmanagement;(3) production mode, business model and financial relationship undernew factor capital mode, including the immanent connection between productionmode and business model, mode of production and business mode and thedevelopment and change of enterprises’ market financial relationship, and operationof business model and the performance of financial relationship based on new factorcapitals;(4) innovating activity (enterprises’ internal production mode generating newfactor capital advantage) including the mode of production and financial relations ofinnovating activities, innovating strategic planning, etc;(5) the innovation of financialmode, including the differences and separation between financial mode andaccounting mode, the embodiment of changes of financial mode, the financialprinciple of new factor capitals creating value, rules of organization innovations, onthe definition of future development direction of financial company.Based on the above research, this paper draws the following conclusions andperspectives:(1) The development and change of production factor is the original motivationof changes of production mode and evolutions of financial relationship, mode ofproduction is mainly embodied in a set of patterns, modes and methods which canmake full use of value function of new factor capitals and have a constant specifictrend. New factor capitals are the basis of selection of enterprises’ production mode,good business production mode must be able to produce a harmonious relationship between labor and capital.(2) The key of capitalization of new factor of production such as human resource,technology, knowledge and information is the value treatment relation; new factorcapitals participating in the corporate governance together with traditional factorcapitals form the factor capital governance mode advocated by this paper, enterprises’financial governance should focus on scientific allocation of production factors andfactor capitals based on production relations and production modes; financial capitalshould invest heavily in new factor capitals, therefore, in terms of financing,enterprises whose internal specials market prefer debt financing, enterprises withspecials privatization and specials’ excessive focus on the internal prefer equityfinancing.(3) Production mode and business model are different and connected to eachother, main distinctions are embodied in disciplinary attribute and characteristic ofproduction factor and behavioral trait, links are: enterprises’ production mode is thebase and environmental premise of construction of business model, commercialpattern belongs to the general mode of production; persistent revolutions ofproduction mode and constant innovations of business model make market-drivenfinancial relations develop towards lineation and network, these trends generatefinancial relations based on production factor capitals; from the angle of new factorcapitals, different types of business models build distinct validfinancial-relation-operation systems for enterprises.(4) Enterprise technology innovation activities must have specific modes ofproduction and financial relations to coordinate and cooperate with them. The keyproduction modes in the process of innovation include enterprise innovation system,organization structure and innovation strategy plan, and innovation network, modular,innovation cooperation interface, etc, financial relations in these production modesmainly demonstrate comprehensive access to factor capitals and efficient use of factorcapitals.(5) The root of separation between financial means and accounting mode is thatfinancial mode can create value for enterprises directly and financial means can beused as one kind of production mode to operate and manage; new factor capitalsrealize their sole purpose of creating value through enterprises’ productivity,production relations and production modes; new factor capitals and their propertyrights are decision makers, planners and designers of enterprises’ organizationinnovations, production relations and production modes and organization capitals and social capitals generated from organization innovations must ensure to improve theability of acquisition for factor capitals; capital operating company of developing andimplementing new factor capital strategies is the direction of future development offinancial companies.The innovations lie in:(1) Analyzing comprehensively the agent of change of production mode andfinance innovation-development and innovation of production factor for the firsttime from the perspective of natural division of labor, social division of labor andrevolution of science and technology. The understanding of traditional mode ofproduction extend to business activities and existence forms such as forms oforganization, organization structure, capitalizing, business model, innovating,accounting mode, financial mode, etc.(2) Analyzing the capitalization of production factors from the angle of financialrelationship-the key to capitalization of human resources is the value treatingrelationship and the relationship between input and output, which can realize capitalvalue standard, the key to capitalization of technology, knowledge and information isthe successful transformation from small stockholder equity to big stockholder equityfor its property right main body. Firstly forwarding dynamic corporate governancemodel-factor capital governance mode.(3) Forwarding the structure system of enterprise innovating from the perspectiveof production factor, production relation and production mode, regarding strategicmap as the tool of innovating strategic target planning, forwarding the tool ofinnovating strategic implementation planning-game system chart. Analyzing thefinancial rule of new factor capital’s creating value from the perspective ofproductivity, production relation and mode of production, analyzing the rule oforganization innovating from the perspective of new factor capital, productionrelation and mode of production.