The Research About The Capital Budgeting Management Of Chinese IT Companies

In 21th century , economic come into a global & digital era. IT companies in China will face in bitter competition. China joined in WTO, which will bring new chance, and then will bring more challenge to IT companies. In the face of challenge & impact, IT companies in China have to strengthen capability of study and inner management.Modern Master Budgeting Management (MMBM) as a best method of bringing more resource to companies, become more and more important. Using MMBM, manager will focus on future, find more chance, and take the action in order to prevent the difficulty in the future. Capital Budgeting Management Analysis as a very important part of MMBM, which always is the hot analysis topic of finance theory. For most of companies, Effective Capital Budgeting will add value to companies and have great significance to companies' continuous development. Now, when IT companies in China make business stratagem, there always have some investment project which will run on fortune of departments or companies. Capital Budgeting Management includes such characters as project scheme, benefit, process, responsibility scope, proposal of capital payout. Using Capital Budgeting Management, companies will attach importance to utilizing performance report of business unit's project plan, and controlling capital payout, and promoting project success.This article consult investment character of IT Companies in China(character is that sum on investment is huge, Scale of permanent assets is higher ,return cycle is more short ), and combine the Capital Budgeting Management actuality of Chinese IT Companies: Now, some IT companies in China had begun to use tools of Capital Budgeting Management, but there have no system of China IT companies Capital Budgeting Management, so application of Capital Budgeting Management in Chinese IT companies are not comprehensive, the result is not very efficiency. In allusion to those problem, this article import the real option theory for Capital Budgeting Management in Chinese IT companies , and provide some suggestion on how to improve Capital Budgeting Management for Chinese IT companies. Hope these Ideas can bring some illumination to theory& practicality of Capital Budgeting Management in Chinese IT companies.