The Research On The Finance Function And Performance Evaluation Based On The Value Creation

The best object of the finance management is maximizing corporate value, which lies in basic variables: future cash flow and venture. Under the circumstance of some venture, maximizing corporate value mainly depends on maximizing corporate free cash flow. But the real finance function and performance evaluation inclines to take profit as masterstroke, and lack necessary relation between finance management course and objects. Therefore, there are important theory significance and practice significance in the research of finance function and evaluation based on the value creation and taking cash flow as its masterstroke.On the foundation of value-based management, this thesis analyses the evolvement of finance management objects and the limitation of original finance function based on the profit. Starting with free cash flow, it probes into the relation between value creation and finance function, construct modern finance function based on value creation and taking free cash flow as masterstroke and tease the connection of value creation and finance decision, corporate governance. In the end, different methods of corporate evaluation are offered. Selecting two companies coming into the market, it analyses the difference using different evaluation methods.