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The Model To Evaluate The Financial Possibility In Small Business Financial Management

Posted on:2004-06-07Degree:MasterType:Thesis
Country:ChinaCandidate:J Z HuangFull Text:PDF
GTID:2156360095453104Subject:Business Administration
Abstract/Summary:PDF Full Text Request
The difficult to finance has been the most distinguish obstacle to development of the small business. Many articles have given different suggestions to the difficult. But these suggestions are always scan of specialty and operation for they look the enterprise as "black box" and study the enterprise from outside.Therefore, it is very necessary to study the financial management as a manager in enterprise.The first part discusses the situation of financing and the reason for the difficult of financing; the second part analyzes the financial theories and the factors of financing: he adaptability of the ability of enterprises, the control of asymmetric information and the trade-off between risk and revenue; The third part discusses financial management which has to answer ten questions: what is the need to finance? When to finance? How much to finance? Who is the investor? How to finance? How long the financing? Who is charge of the financing? Is it necessity to forget the right of control? How to manage the progress? Can we acquire the funds needed? The fourth part establishes the model of financial evaluation. The fifth part is case. The last part is summary and discussion.The creative of this thesis is management way of the small business financing and the model to evaluate the possibility and the necessity of the financial project.We should evaluate the possibility and the necessity of the financial project that is come from the process of financial management. The possibility evaluation uses the model of acquiring fund to analyze. The model of acquiring fund is based on the fact that the success depends on the adaptability of the ability of enterprises and thecontrol of asymmetric information. The diagram of possibility of acquiring fund is draw from the function of acquiring fund. By the diagram of possibility of acquiring fund, we can analyze the possibility of acquiring fund and find out the problem.The measure to ability of enterprise depends on the current assert and the level of technology and the future development potential that measured by the general quality varieties method. We can regard the state of asymmetric information between the fmancer and investor as a spectrum line that continue the varieties, and thinking the action that decreases the state of asymmetric information will increase the level of symmetric information. Then we can get the data about the level of symmetric information.Necessity evaluation is based on the possible positive effect and negative influence after enterprise finance. We can get the short-term influence by the model that evaluate short-term profit and loss after finance. We can get the long-term influence, especially the influence to the value of enterprise by MM theory, DCF and the option thought. The finance distress cost and agency cost are analyzed by free cash flow. The risk is evaluated by degree of operating leverage and degree of financial leverage.
Keywords/Search Tags:small business, financial management
PDF Full Text Request
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