High-tech Enterprise Financial Management

With the coming of information society , the high-tech enterprise has become the growth point of the economy. More and more emphases are focused on the high-tech enterprise. In contrast with other traditional enterprises, the financial management of high-tech enterprise has its own features. In this essay, we will hold a discussion about the financial management of high-tech enterprise. It has four sections in this essay.In the first section, we will give a generalization on the financial management of high-tech enterprise. . It includes the concept and the features of the high- tech enterprise, the current situation of the high-tech enterprise in our country, the main features of the financial management of the high- tech enterprise, the goal of the financial management of the high-tech enterprise.In the second section, we will focus our attention on the financing problem of the high- tech enterprise. 1. In the early period, the high--tech enterprise need more and more money for its development .The funds spend mainly upon the technology research and market exploration of its products. There are more and more cash to outflow than to inflow. In the later period, there are sales incomes to inflow if the products of the high- tech enterprise sell well. 2.Because of the high risks involved in the investment of the high-tech enterprise, if we lend too more bank loans to invest, it would cause the risk of the claim capital rise rapidly. The risk of the equity capital also rises. It causes the cost of the capital rise at the same time. We want to get the lowest capital cost, so we shouldn't borrow too more bank loans. 3. The cost of lender to get the correct information about the investment of the high-tech enterprise is very high. It leads the lender toadd the interests of the loan. So the cost of claim of the high- tech enterprise would be very high. But to a shareholder, it is easier for him to know about it. So the cost of the equity financing is lower than that of lender. .4.The operational risk of the high-tech enterprise is high. It means the effect of the operation leverage is very large. For the stable development of the high-tech enterprise, the total leverage effect of the shouldn't be too high. We shouldn't lend more loans in order to avoid the too large financial leverage effect. 5. For the high- tech enterprise, it would choose the best way to import funds for its development. To import from the share market is the best choice. It not only can obtain huge amount of money, but also can diversify the risks of the high- tech enterprise. 6．During the analysis of the accessibility of different financing channels and the features of the funds from different ways ,we draw a conclusion upon the financing channel choosing. 7. In a word, in the different period of high-tech enterprise, it should choose different financing channel in order to satisfy its different financing need. In the third section, we will talk about the investment of the high-tech enterprise. The knowledge capital is an important part in the capitals of the high-tech enterprise. The knowledge capital investment is a risk-involved investment. The risks involved include the technical risk, the economical risk, the market risk, the managerial risk, the cooperation risk, and the financial risk. We should try our best to avoid these risks to happen or to less the loss. So, we should add the input on the technology research to enhance the core competition ability. We should make a careful study before the investment about the technical and the economical practicability . It affects the final outcome of the inves...