Research On Enterprise's Behavior-based Value Budget Management

The theory of budget management has ever become popular for a time since it was created. Many large and international enterprises acquired the good economic effects, while putting the budget management into practice. The Ministry of Finance, the original Economic Trade Commission and related section in our country successively regulated the regulation system and promoted strongly the budget management, because it improved the situation of our enterprise in china. But the environment of the Chinese enterprises has taken great changes. On the one side, the human society is coming into the knowledge economy epoch, in which the science and technology have made a great advancement. The people who own knowledge are becoming the important resources promoting the development of the social economy. The innovations of technique and human resources have already become the core competencies of the enterprise. They have an great effect on the financial management system. On the other side, the current budget management oneself regulate the low effect in implementation, escaping from the strategy of enterprise, deviating from the target of the management of the undertaking, over-emphasizing the accomplishment of the finance. So we have to examine the problem of the budget management method itself and its functions on the enterprise's financial management again. Under the enlightenment of Professor Guojun Xu's Theory of Behavior Finance and the research of the behavior, the value and its relations, this article put forward a new topic: enterprise's behavior-based value budget management. And it's the new content of finance management. Up to now, the finance management is confined to the management of material resources and their value, and hope to create value from this management. But in fact, people are the main parts who create value. The value is coming from the economic behavior of the people. Under this background, this article takes the point of the core of the enterprise management is the financial management, the core of the financial management is the value-creative management, and the core of the value-creative management is the behavior-based value management. The behavior-based value budget management is the budget management that making use of the idea of the behavior-based value management, utilizing Professor Guojun Xu's Three Dimension Accounting System. It regards the economic behavior as the object of the budget management and considers the maximum of the total behavior value as the goal of the behavior-based value budget management. The produces include the planning, the execution, the improvement and the assessment of the budget management.On the base of the above ideas, the article analyses and researches the flaw of the traditional budget management. Using the method of standard research, this article puts forward the topic of the behavior-based value budget management. The writer researches the behavior, the value and their relations and gives the concept of behavior-based value budget management, the goal of the budget and the content of the behavior business unit. The author designs the produce and the method of behavior-based value budget. Finally, the article tells the feature and the meaning of behavior-based value budget management.