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The main principles of the organization of corporate finance are. Principles of organization of finances of corporations (organizations)

Corporate finance is a collection economic relations arising in the process of formation, distribution and use of funds of funds generated in the process of production and sale of products, works and services.

The significance of corporate finance lies in the fact that, on the one hand, it is in this link of the financial system that the main part of the national wealth of society and the gross national product are created; on the other hand, it is within the framework of corporate finance that the main source of state budget revenues is formed - tax payments legal entities; at the same time, it is here that the foundation for the development of technologies is laid, scientific and technological progress, since it is here that the bulk of the production, economic and financial relations of society are formed; and there is no doubt that it is here that the main jobs are created, which serve as the main source of income for another link in the financial system - household (population) finance.

A feature of corporate finance is the presence production assets, the functioning of which determines the features of emerging financial relations.

Corporate finance performs the following functions:

Distribution - expressed in the distribution of funds between various stages of production and consumption (for example, funds raised in the authorized capital are directed to the purchase of equipment and the purchase of raw materials, which in turn participate in the production of a new type of product, after the sale of which the incoming money is sent to further production and for example payment wages); *

control - through corporate finance, control is exercised not only over the process of formation, distribution and use of funds, but also over the process of production and sale, compliance with production technologies, supply issues, compliance with the conditions labor law etc.

The organization of corporate finance is based on the following principles:

The principle of commercial calculation:

o self-sufficiency - payback of money invested. The principle of self-sufficiency assumes that the funds invested in the development of the corporation will pay off through net profit and depreciation charges. These funds are designed to provide a minimum of regulatory economic efficiency owned by an enterprise (corporation) equity.

o self-financing - full payback of costs not only for the production of products, but also for the expansion of the production and technical base. At the same time, attracting bank loans is considered as the company's ability to repay not only the loan received, but also the interest for servicing. With self-sufficiency, the enterprise finances at the expense of own sources simple reproduction and contributes taxes to the budget system. The implementation of this principle in practice requires the cost-effective operation of all enterprises and the elimination of losses. The principle of self-financing involves strengthening liability enterprises (corporations) for compliance with contractual obligations, credit and settlement and tax discipline. Payment of penalties for violation of the terms of business contracts, as well as compensation for losses caused to other organizations, does not release the enterprise (without the consent of consumers) from fulfilling its obligations to supply products (works, services). To implement the principle of self-financing, a number of conditions must be met:

§ accumulation of own capital in an amount sufficient to cover the costs of not only current, but also investment activities;

§ choice of rational directions for capital investment;

§ constant renewal of fixed capital;

§ flexible response to the needs of the commodity and financial markets.

Let's consider these conditions in more detail. The content of the first condition is the segregation of funds to finance current and investment activities. These cash are concentrated on the settlement accounts of the economic entity until their further distribution. From the position of financial management, it is important to carry out the periodization of cash, i.e., its distribution according to the time spent in real circulation for short-term and long-term funds.

The second condition implies the identification of such ways of investing capital that lead to the strengthening financial condition enterprise and increase its competitiveness in the commodity and financial markets. Compliance with this condition is associated with an assessment of the level of self-financing, the development of criteria for such an assessment, with an analysis of the movement of capital by type of activity of the enterprise.

The third condition for self-financing is to ensure the normal process of renewal of fixed capital. An increase in the value of fixed assets as a result of their revaluation is beneficial for the enterprise, since no additional payments are made in the form of dividends and interest, and the amount of equity increases.

The fourth condition of self-financing involves the implementation of such a financial policy in which the enterprise can function normally in conditions of fierce competition in the commodity and financial markets. This policy is aimed at reducing the costs of production of circulation and increasing profits. Self-financing, based on high yen, contributes to an increase in the money supply and becomes a generator of inflationary processes in national economy. Therefore, in order to increase the level of self-financing, economic entities are obliged to clearly respond to market needs for relevant goods (services). The mechanism for responding to market needs involves specialization, diversification and concentration of production. The orientation of this mechanism should be linked to tax, price and investment policy states. The application of the self-financing principle is an important factor in preventing the bankruptcy of an economic entity and creates an opportunity for effective use financial management.

The principle of planning is mandatory. It ensures that the volume of sales and costs, investments correspond to the needs of the market, taking into account the conjuncture, and in our conditions, effective demand, i.e. the possibility of making normal calculations. This principle is most fully realized when implementing modern methods intracompany financial planning(budgeting) and control; Plan Implementation Fact

The principle of division working capital on own and borrowed. The division of sources of formation of working capital into own and borrowed is determined by the peculiarities of technology and organization of production in certain sectors of the economy. In sectors with a seasonal nature of production, the share of borrowed sources of working capital formation increases (trade, food industry, Agriculture and etc.). In sectors with a non-seasonal nature of production (heavy industry, transport, communications), own working capital prevails as sources of working capital.

· Creation of financial reserves. The formation of financial reserves is necessary to ensure the stable operation of enterprises (corporations) in the face of possible fluctuations market conditions, increased liability for failure to fulfill their obligations to partners. IN joint-stock companies financial reserves are legally formed from net profit. For other economic entities, their formation is regulated by constituent documents.

The principle of demographic centralization - management style, management

Income as the main source of cost coverage. Factors determining it

Income is the total finished products shipped to the side, the volume of work performed and services rendered is confirmed by issued invoices, shipping documents and simply waybills.

In accordance with IFRS, income is reported on an accrual basis, and the cash basis is also used in accounting. The value of income not only as a result of financial economic activity business entity, but also how economic indicator in general is as follows:

timely receipt of funds in payment for shipped products ensures complete and timely

payment of current and long-term expenses of the company, which ensures the continuity of the production process and sales of products;

The presence of income confirms the restoration of the funds spent on production, the completion of the main production cycle and the creation of the necessary conditions for the resumption of the next circulation of funds;

· the presence of income makes it possible to judge the role of a given company in a given market, the feasibility of its creation and prospects for the future;

timely receipt of funds within the income received ensures the timeliness of settlements with the budget (timely payment of salaries to teachers, doctors and pensions for pensioners, etc.), with company employees (high productivity of their labor), with suppliers their industries), etc.

The company's income includes:

income from the sale of goods (works, services);

income from the increase in value from the sale of buildings, structures, as well as assets that are not subject to depreciation;

income from writing off liabilities;

Income from doubtful liabilities;

Income from the rental of property;

· Income from reducing the amount of provisions created by banks;

income from the assignment of a debt claim;

· income from the excess of the value of retired fixed assets over the book value of assets;

income received from the distribution of income from common shared ownership;

property received free of charge, work performed, services rendered;

Dividends remuneration;

· excess of the amounts of positive exchange rate difference over the amount of negative exchange rate difference;

· winnings.

The main factors determining income are:

production: production volume, product quality, assortment, rhythm of release, production technology, seasonality of production;

marketing: rhythm of shipment, terms of document circulation, forms of payment, terms of delivery, advertising, related services, etc.;

· not dependent on the activities of the company: political factors, natural and climatic, legal and others.

financial corporate income cost

The composition and structure of costs included in the cost of production

Costs are the expenses of the company aimed at organizing its production, economic and commercial activities. The cost of production and sales of products occupy the largest specific gravity in all company expenses. They consist of the costs associated with the use in the production process of products (works, services) of fixed assets, raw materials, materials, components, fuel and energy, labor and other costs. The amount of profit depends on the formation of this group of expenses. The costs of production and sale of products (works, services) are reimbursed after the completion of the circulation of funds at the expense of proceeds from the sale of products (works, services).

Production costs are diverse and classified according to certain criteria, the main of which are the method of attribution to the cost price, the relationship with production volumes, the degree of cost homogeneity.

Depending on the methods of attribution to the cost of production, costs are divided into direct and indirect, while direct costs are understood as costs that can be directly and directly included in the cost. This is the cost of raw materials, basic materials, purchased semi-finished products, the basic wages of production workers, etc.

Indirect costs include costs associated with the production of different products, and therefore they cannot be directly attributed to the cost of a particular type of product. These are the costs of maintenance and operation of equipment, maintenance and repair of buildings, salaries of AUP, etc.

Depending on the relationship of costs with the volume of production, conditionally fixed and conditionally variable costs are distinguished. Conditionally fixed costs include costs, the total value of which does not change significantly with a decrease or increase in the volume of output, as a result of which their cost changes. relative value per unit of production. This is the cost of heating and lighting the premises, salaries of the AUP, depreciation, administrative and business expenses, etc. Conditionally variable costs depend on the volume of production, they grow or decrease in accordance with the change in the volume of output. These include the cost of raw materials and basic materials, process fuel, the basic wages of workers.

In the basis of costing products use the classification of costs according to the degree of cost homogeneity. Thus, elemental costs have a single economic content for a given link, regardless of their purpose.

These are material costs, wages, depreciation, sales costs, non-production payments and other expenses. The ratio between these cost elements is the cost structure for the production of products. Complex costs include several cost elements, i.e. diverse in composition, but united in economic purpose. These are general shop expenses, losses from marriage and others.

The composition of costs attributable to the cost of production includes all types of expenses associated with the production of this type of product, and confirmed by the relevant documents, except for: travel and hospitality expenses; expenses for the payment of remuneration, in the form of interest on a loan, discount or coupon; expenses on paid doubtful obligations; expenses for research, design, exploration, experimental design and geological exploration, charitable and sponsorship assistance, fines and penalties and similar expenses. Some of these expenses are deductible as expenses of the period and reduce taxable income, and part is covered by profit.

Company expenses that are not included in the cost of production and are deductible

The company's expenses that are not included in the cost of production and are deductible include expenses that are defined as expenses of the period. The significance of this group of expenses lies in the fact that, despite the fact that they are not included in the cost of production, they reduce the amount of taxable income, and hence the amount of corporate income tax payable to the budget. These expenses include:

· compensation for business trips and hospitality expenses within the limits established by the Government of the Republic of Kazakhstan;

Expenses on paying interest on loans received (including financial leasing), except for loans received for construction, as well as on paying a discount or coupon on debt securities and paying interest on deposits (deposits) within the limits established by the Tax Code of the Republic of Kazakhstan ;

Expenses related to the payment of doubtful obligations that were previously recognized as income (outstanding accounts payable);

Expenses for writing off doubtful claims that arose as a result of the sale of goods (works, services) and not satisfied within three years from the date of the claim or bankruptcy of the debtor (not repaid accounts receivable);

expenses on deductions to reserve funds made by subsoil users to eliminate the consequences of development at its completion, as well as banks and other organizations engaged in banking operations to create provisions for doubtful and bad assets (loans granted, deposits placed, receivables, contingent liabilities) ( these entities only)

· Expenses for research, design, survey and development work, except for the acquisition of fixed assets and other capital expenditures;

· Expenses on payment of insurance premiums under insurance contracts, except for funded insurance, within the established norms, as well as mandatory and other contributions made by banks participating in the collective deposit guarantee system;

· expenses for social payments for temporary disability, for maternity leave, for compensation for harm caused at work, for contributions to the State Social Insurance Fund, voluntary professional pension contributions within the limits;

Expenses for geological survey and preparatory work for extraction natural resources are deductible in the form of depreciation charges according to the norms of the subsoil user, not exceeding 25%;

· excess of the amounts of negative exchange rate difference over the amount of positive exchange rate difference;

fines and penalties associated with the receipt of total annual income, with the exception of those payable to the state budget;

taxes paid in the current period, except for taxes excluded before the determination of the SRS (for example, VAT, property taxes, individual income tax, social tax), corporate income tax, tax on net income paid by non-residents and excess profit tax paid by subsoil users.

These expenses are deductible if there are documents confirming these expenses, provided that they were made to receive the total annual income of the given tax period.

These costs are united by the fact that:

They cannot be included in the cost specific type products; -

they are associated with the receipt of total annual income in general and are a production, legal or social necessity; -

some of them are related to long-term costs; -

they are not stable in size; -

are not permanent -

They pay off over a long period of time.

Profit distribution and use system

Profit as economic category reflects the net income created in the sphere of material production in the process of entrepreneurial activity. The formation of profit as a result of the process of production and sale of products indicates the recognition of the social utility of these products. Profit is the result of the excess of income received from the production and sale of products, works and services over the costs invested in the production and sale of these products. Profit performs the following functions: characterizes the economic effect; confirms the feasibility this business; reflects the final financial result - shows what was ultimately achieved; performs a stimulating function, since it is it that serves as a source of self-financing; serves as a source of budgeting different levels, both in the form of taxes, and in the form of various sponsorships or other areas of redistribution.

The object of distribution in the enterprise is the balance sheet profit. The distribution of profit is understood as its direction to the state budget and according to the items of use in the enterprise. Legislatively, the distribution of profits is regulated in that part of it that goes to the budgets of different levels in the form of taxes and other mandatory payments. Determining the directions of spending the profit remaining at the disposal of the enterprise, the structure of the articles of its use is within the competence of the enterprise.

The distribution of profits is based on the following principles:

profit received by the enterprise as a result of production, economic and financial activities, distributed between the state and the enterprise as an economic entity;

· profit for the state comes to the state budget in the form of taxes, the rates of which cannot be arbitrarily changed. The composition and rates of taxes, the procedure for their calculation and contributions to the budget are established by law. Corporate income tax, net income tax paid by non-residents, excess profit tax paid by subsoil users, as well as fines, penalties and forfeits accrued to the state budget are paid from profits to the budget;

· the value of the enterprise's profit remaining at its disposal after paying taxes, should not reduce its interest in the growth of production volume and improvement of the results of financial and economic activities; *

The profit remaining at the disposal of the enterprise, first of all, is directed to accumulation, which ensures its further development, and only in the rest of it to consumption.

At the enterprise, net profit is subject to distribution, i.e. profit remaining at the disposal of the enterprise after paying taxes. The distribution of net profit reflects the process of formation of funds and reserves of the enterprise to finance the needs of production and the development of the social sphere.

The distribution of net profit is one of the directions of intra-company planning. The procedure for the distribution and use of profits at the enterprise is fixed in the charter of the enterprise and is determined by the dividend policy, which is developed by the relevant divisions of economic services and approved by the governing body of the enterprise (management board, board of directors, meeting of shareholders). In accordance with the charter or the provisions of the dividend policy, the enterprise can draw up cost estimates financed from profits, or form special-purpose funds: a fund for production and scientific and technical development fund social development, financial incentive fund. All profit remaining at the disposal of the enterprise is divided into two parts. The first increases the property of the enterprise and participates in the process of accumulation. The second characterizes the share of profit used for consumption. At the same time, as a rule, not all profit allocated for accumulation is used in full. The rest of the profit not used to increase the property has an important reserve value and can be used in the future to cover possible losses and finance various expenses. Retained earnings indicate the financial stability of the company, the presence internal source for further development.

The formation of a market economy in Russia objectively led to the emergence of private enterprises, the growth of their influence on the system of economic relations, and corporate finance on the entire set of economic relations in the country. This is confirmed by the growing influence of private enterprises (corporations) on the development of the country's economy and forming the corporate sector of the economy. The corporate form of doing business is the main one for any country with market economy. The growth of the economic potential of enterprises (organizations) is directly related to an increase in revenues to the revenue side of the budget, with the possibility of creating new jobs, with an increase in the income of owners, the well-being of employees and the development of infrastructure in the regions. The relevance of the study of issues of corporate finance management is confirmed by a large number of scientific works in this area and the inclusion of this discipline in the training programs for financiers in different countries. This is also confirmed by the facts of awarding Nobel Prizes in the field of finance over the past 25-30 years to a number of scientists, including G. Markowitz, M. Miller, R. Merton, F. Modigliani, M. Scholes and others.

The phrase "corporate finance" can be considered in a narrow and broad sense. In a narrow sense, this is the finance of private companies, corporations, enterprises, and in a broad sense, it is a science that studies the financial support of their activities.

Finance - it is a set of economic relations that determine the creation, distribution and control of monetary funds

state (centralized) and individual economic entities (enterprises, organizations, institutions, corporations) (decentralized). Information about finance is directly related to information about income, expenses, capital, created funds, etc. The totality of monetary relations of private enterprises forms corporate finance.

Corporate Finance(hereinafter - CF) is a science that studies the totality of economic relations, principles and methods that arise in the process of formation, distribution and use of financial resources of companies (corporations, enterprises). This science uses, first of all, the concepts, methods, techniques of financial management, taking into account the specific features of doing business. economic entities, as well as tools of related sciences and disciplines ( economic analysis, micro- and macroeconomics, finance, etc.). Financial management of a corporation can be divided into two parts: management of financial and economic activities for the production of products (works, services), increasing profits, increasing costs and other indicators, and corporate governance as a system of relationships between shareholders, managers, the Board of Directors, etc.

The essence of the CF is revealed in the process of cash flow in the implementation of transactions between, for example, business entities in the process of acquiring inventories, manufacturing products (works, services), capital investments; maternal (head) and child ( structural divisions) enterprises; founders (shareholders) and the enterprise in the process of organizing the enterprise and paying income; enterprise and employees for wages; between the enterprise and financial system countries when paying taxes and fees, etc.

Object of study CF is the formation and use of capital, funds, income and payments that make up the cash flow, assets and liabilities of enterprises in relation to specific conditions, types of activities and organizational and legal forms of economic entities.

Subject of study CF are financial and economic relations that arise in the process of managing the finances of an enterprise (corporation) in a non-equilibrium economic environment when doing business.

Corporations conduct their activities using the principles of financial organization common to all companies (enterprises): planning, rationality, financial stability, flexibility, cost minimization, property safety and liability, etc. Among the distinctive and important principles of corporate finance organization are:

1. Publicity - availability and openness of information about the activities and decisions made, except for confidential information, public interest in the goals, objectives and activities of the corporation.
2. scale - significant influence on the market of goods and factors of production, reflected in the operational (diversified activity) and geographical segment of the corporation.
3. Planning - coordination of the volume of production of products (works, services) with the needs (conjuncture) of the market, which makes it possible to form using financial planning methods necessary resources and ensure the smooth operation of the corporation.
4. Consolidation financial reporting - formation of general reporting in accordance with the level of control of the parent company over the activities of another (parent and subsidiary companies, companies leading joint activities, as well as associates and affiliates).
5. Transfer pricing control - the price of a transaction between related parties that is not established by the market, for example, by the parent company of a corporation for the sale of goods (works, services) to subsidiaries, often in order to reduce the tax burden on companies that are part of the corporation. Transfer price control does not apply to international transactions, but to transactions between related parties in Russia in accordance, for example, with Art. 20 and 40 tax code RF and federal law"On Amendments to Certain Legislative Acts Russian Federation in connection with the improvement of the principles for determining prices for taxation purposes” dated July 18, 2011 No. 227-FZ.
6. Self-regulation financial and economic activities - an independent response of the corporation to influencing factors and when the state intervenes in the affairs of the corporation in cases where great importance(consequences) for the country's economy. Self-regulation includes the right to independently choose a development strategy, financial planning, the creation of reserves and the formation of funds, sources of financing on the basis of existing regulatory legal acts. Economic independence is combined with the corporation's acceptance of emerging risks and liability for obligations.
7. self-sufficiency activities and the formation of reserves - reimbursement of expenses incurred by the corporation with the proceeds received (other income), as a means of covering possible losses of resources due to the impact of an unbalanced economic environment, changes in market conditions and force majeure situations in the conduct of activities. This is an indicator of the minimum efficiency of economic activity that ensures simple reproduction.
8. Self-financed activities - the availability and sufficiency of own capital (retained earnings, share capital) necessary for the organization of simple and expanded reproduction. It characterizes the level of profitability of the corporation and its constituent companies. Self-financing ensures greater independence of the corporation (company), than in the case of raising borrowed funds, it increases the responsibility of employees and all departments for possible (incurred) losses. However, a disadvantage in this case may be relatively lower rates of production growth and implementation of the development strategy than in the case when additional borrowed funds are attracted. Therefore, corporations in each specific case determine the optimal ratio of their own and borrowed sources of financing.
9. Completeness of insurance coverage - a wide range of objects, operations, persons for which insurance coverage is used in the conduct of the corporation's activities. The versatility of activities and a wide range of operations carried out by companies that are part of the corporation, including operations in the Forex market, the stock market, the market for borrowed funds, determines high level used insurance protection of corporations against insured events.
10. Providing protection property rights of shareholders (owners) of the corporation, with all the variety organizational forms association of companies to conduct business.

The main tasks of the CF should include:

providing the activities of the corporation with the necessary financial resources;
determination of sources of financing activities, their size, structure, sequence of attraction and optimization of their cost;
assessment of the feasibility of implementation and management of an investment project, inflow and outflow of funds, capital investments;
formation of reserves to ensure uninterrupted operation, settlements with shareholders and counterparties and covering losses in case of force majeure;
determination of the optimal ratio between possible profitability and emerging financial risks;
corporate valuation, etc.

The essence of CF is manifested in the functions they implement and is reflected in a number of categories, for example, “income”, “expense”, “profit”, “capital”, “price”, “profitability”, “business value”, etc. The definition of these categories is considered in the following chapters. There are a number of opinions on the issue of the number and essence of CF functions: Romanovsky M.V. identifies three functions of finance: the formation of capital, income and cash funds; use of capital, income and cash funds; regulation cash flows. Bocharov V.V. determines economic essence CF in three functions: the formation of capital, income and cash funds; use of capital, income and cash funds; control function. Barannikova N.P., Volodin A.A. recognize two functions of finance: distributive and control. The discussion on this issue continues, since other functions are distinguished, including stimulating, accounting, etc.

The following three functions of the CF seem to be the main ones:

Formation of capital, income and cash funds ensures the continuity of the reproduction process. Attraction of equity and borrowed capital, formation of cash funds (reserve, enterprise development, social development, etc.) at the expense of net profit, accumulation of incoming income, attraction of targeted financing provides the possibility of acquiring resources (material, labor, information and intellectual, etc.) for doing business, etc.

Use of capital, income and cash funds to achieve the goals of implementation by directing them to implementation investment projects, renewal of fixed assets, their use for the purpose of material incentives for employees, the creation of reserves, etc. All this makes it possible to increase economic potential enterprise and its value.

control function, which allows you to show the results of the enterprise in the form of cost indicators, compare the values of planned, actual and forecast indicators with each other and identify deviations in indicators, and the state to influence the results of the enterprise through a financial mechanism. As a result, it is possible to assess the solvency, business activity, financial (market) stability of the enterprise, etc.

Corporate finance is based on a number of concepts that describe the object under study (cash funds of a corporation, etc.), which must be taken into account when evaluating the effectiveness of managerial decisions. Concepts of financial management determine the general approaches, methods, assumptions to the formation and expenditure of funds. In corporate finance, these general approaches, methods, and assumptions are concretized in relation to the business conditions of the corporation, its form and type of activity. Let's briefly review the main concepts.

1. The concept of maximizing the wealth of shareholders (Wealth Maximization Theory), which consists in the fact that the criterion for the effectiveness of the corporation's activity is the maximization of its own capital ( market value). It is the growth of business value, in contrast to indicators of the amount of dividends paid, profit, profitability, that currently determines the effectiveness of management decisions to the greatest extent.
2. cash flow concept, which consists in recognizing the fact of the connection of any business transaction with the cash flow (L.A. Bernstein, J. Brigham, J.K. Van Horn, 1950s). The control object must generate cash flows, the value of which at its output must be greater than at its input. It is necessary to determine and manage influencing factors, identify cash flow, choose methods of evaluation and management methods.
3. The concept of resizing and value cash, which consists in justifying the shortfall in cash as a result of the accompanying business risks, a decrease in the turnover rate of funds and a change in their purchasing power over time due to inflation (I. Fischer - 1930, J. Hirschleifer - 1958). According to this concept, risks are identified, discount factors are calculated and the current (present) value of money, performance indicators of investment projects (J. Williamson - 1938, M. Gordon - 1962, S. Bauman - 1969).
4. The concept of trade-off between return and risk consists in recognizing the fact that the higher the income, the higher the risk (F. Knight - 1921). The concept requires establishing criteria for the normal value of entrepreneurial risk and developing measures aimed at minimizing possible losses of funds.
5. The concept of the price of capital indicates the absence of free sources of funding for activities. The cost of the respective source determines minimum level income for the investor (J. Williamson - 1938, F. Modigliani, M. Miller - 1958-1963). According to this concept, sources of financing are identified, their ratios, costs, timing and sequence of attraction are determined, the company develops a dividend and depreciation policy, alternative options for the development and implementation of investment projects.
6. The concept of the priority of the interests of the owners enterprises in front of the interests of other participants (G. Simon - 1952) allows us to formulate an important goal of financial management - maximizing the welfare of owners and the market value of the enterprise. The concept defines managerial decisions of managers.
7. Capital Market Efficiency Concept(G. Roberts - 1967, Yu. Fam - 1970) is that borrowing additional sources financing in the capital market, the activity of operations in the securities market and pricing is determined by the saturation of the market with information. Under market efficiency understand the degree of its saturation with information and its accessibility to users. In an efficient market, the appearance of additional information affects the price of financial assets. The influence of information on price changes and financial flows in the market is determined by its efficiency, which can be low, medium and high. With low market efficiency, current prices are completely determined by their dynamics in the previous period. The efficiency of the middle-level market determines the dependence of market prices on their level in the past period and on other publicly available information. With high efficiency, market prices are additionally dependent on the information held by individuals.
8. The concept of asymmetric information(S. Myers, N. Meijlaf - 1984) is associated with the concept of capital market efficiency and lies in the fact that each market participant has different information in terms of its reliability, completeness, verifiability, etc. The degree of asymmetry for each market participant - its own, and this is the meaning of asymmetric information. The buyers of a company's securities have less information than the company's managers. Managers use this circumstance to inflate the sale price of securities, as a result, investors incur additional financial losses. Each market participant believes that the information available to him will give him additional advantages and provide a greater cash flow. The more participants occupy such a position, the more actively operations are carried out in the market and the higher the turnover of funds.
9. The concept of agency relations(M. Jensen, W. Meckling - 1976) establishes the existence of a gap between the ownership and management of the company. Therefore, the owners of the company do not manage it, but entrust these functions to agents - finance managers. At the same time, a conflict of interests of the parties is possible, which can be weakened if the achievement of a certain goal is accompanied by material incentives activities of managers and their receipt of part of the profits. At the same time, it is necessary to organize control over the activities of managers. This circumstance determines the presence of financial flows aimed at paying for the work of managers, monitoring their activities and audits, creating a system of protection against undesirable decisions of managers, including by introducing founding documents paragraphs on the procedure big deals and etc.
10. Opportunity cost concept determines how acceptance occurs management decision, namely, by choosing one of several alternative solutions. At the same time, the manager compares the costs for all options. Opportunity costs are defined as the income that an enterprise could have received if it had adopted a different option for using its resources. This concept is important when considering investment options, raising capital, etc.
11. Business continuity concept enterprise is used in the work of a financial manager, accountant and auditor. Paragraph 25 of IFRS 1 (M5) “Presentation of Financial Statements” states that financial statements in without fail should be prepared on the basis of the going concern assumption, except in specific cases 1 . In the event that an entity (paragraph 14 of IFRS 10 (/45) “Events after the end of the reporting period”) decides to suspend or liquidate its work, the going concern principle is violated. Therefore, an enterprise should not prepare financial statements based on this principle, but is obliged to change accounting methods, which the financial manager should take into account when making decisions. The auditor's report expresses an opinion on the conformity of the financial condition of the enterprise with its intention to continue operations in the future. Thus, interested users are given a signal about the possibility of continuing cooperation with this enterprise. In a bankruptcy situation, it must be taken into account that

IAS - International Accounting Standards ( International Standards financial statements). Since April 2001, these standards have been issued under a new name - IFRS (International Financial Reporting Standards).

cash flows from the sale of property will be less than when they are sold in normal conditions activities.

12. Decision making concept subdivided into outsider and insider. The outsider concept proceeds from the fact that the capital of the enterprise is distributed among many owners, holders of shares and bonds, who practically do not participate in the management of the enterprise and also do not control cash flows. This allows you to accelerate the growth of the market value of the enterprise. The insider concept defines the ownership of the company's capital by banks that influence decision-making. In this case, the question of profitability of investors becomes decisive.

These concepts in real conditions complement each other. The assessment of their joint influence, combined with the art of the manager, allows you to take into account the impact of external and internal factors, and the ability to use opportunities labor collective allows you to sustainably provide the enterprise with financial resources.

Directory of the financier of the enterprise / N.P. Barannikova, L.A. Burmistrova, A.A. Volodin and others. M.: INFRA-M, 2002.

What is meant by corporate finance? What role do they play within the same organization? On what principles is their use based? What toolkit was invented for their more perfect and effective application?

general information

First, let's deal with the terminology. What is corporate finance? This concept is used for a relatively independent sphere of the system, which includes monetary relations associated with the formation and subsequent use of capital, income and funds during the circulation of funds. It is here that a large (even the main) part of the financial resources is formed, which are used as a source for economic growth. An important point is the formation of income, cash funds, as well as their subsequent distribution. The source of their formation is profit, which remains at the disposal after the payment of all mandatory payments such as covering costs and taxes.

How it all began

Let it be known to the reader that corporate finance is an independent scientific direction. True, it is relatively young - it was formed around the 1950s. The term “organizational finance” refers to a synthetic scientific discipline that relies on economic theory and analysis, accounting and auditing, and a number of other areas. The main task is to make optimal decisions in various fields activities.

Impact of legislation

This is not to say that corporate finance is the exclusive business of the organization itself. IN modern world they are quite heavily regulated by civil law and are under the supervision of the relevant government agencies. So, the procedure and amount of formation of the authorized / reserve capital for organizations with various legal forms, share offerings and buybacks, mergers and liquidations, write-offs and bankruptcy. It also requires a certain financial independence of the enterprise. After all, even at the stage of creation, it is necessary to have certain funds that will allow you to make a profit in the future. So, part of the funds should be directed to wages and material costs. In the future, this money is compensated by making a profit. At the same time, one should not discount the process of redistribution, in particular, the moments fixed at the legislative level. Take, for example, the wages received by an employee. When it is transferred to his bank account, then there is a process of distribution of profits. But at the same time taxes are levied. And this is the redistribution of profits received by the organization. Corporate finance must take this into account. Now let's move on to another question.

Principles of corporate finance

What is the basis of all the work in this area? Corporate finance is based on the following principles:

They should always be associated with the actual turnover of funds and cash flows of the organization that arise during business activities and in the implementation of operations.
The order of work is largely regulated by the state;
As a result of the movement of cash flows, various monetary funds of the enterprise arise, are formed and used, which have the form of financial resources and can be invested in the assets of the enterprise.

Functions

Microeconomics is the study of them. The functions of the organization's finances are directly related to the creation, formation and use of monetary funds and capital of the enterprise. In a nutshell, these include:

Regulation of cash flows in the organization itself;
Formation of capital, income and funds;
Use of available resources.

At the same time, one important point should be noted. IN modern conditions not all finances of an organization can be considered as cash funds due to the lack of characteristic features. True, this applies only to the private sector - in the public sector everything is stricter.

Specific points of functions

First, let's talk about cash flow management. After reviewing its data, you can get information about the purpose of finance, their formation and use. In many ways, the state of affairs depends on the existing regulation. Also, the available data can be used to plan finances for future periods. A small example: if we direct a significant amount of money to the production of new products, then it is expected that they will be sold and make a profit. The formation and use of resources allows for high-quality management of corporate finances. This is where the principle works. feedback. That is, we can influence the wages of employees, the prices of goods, the terms of loans (looking for a bank with a better offer), profitability (advertising a product among a significant target group) And so on. It should be understood that such detailing of functions is very conditional. Indeed, in practice they are extremely strongly intertwined and are carried out almost simultaneously. Yes, they are of interest financial services and specific specialists who use a number of tools, methods and techniques in their activities. What are they doing? They analyze the organization's finances, make recommendations on their use and monitor their application in the field.

A small example of an activity loop

How is corporate finance managed in practice? To answer this question, consider a small example. Let's say that we have a company that is running a successful business. Consider one of its cycles of work. Initially, data on the previous period is collected. Based on them, financial planning is carried out. In other words, theoretical calculations are being made about how much money the organization will earn in the future period. Based on how successfully the formation of finances is going on, organizations make a decision about the success of the chosen strategy and the correctness of the calculations. These data allow us to judge how well the managerial link is coping with its tasks. It is also important to control how the funds are used. An experienced specialist, even without seeing the situation, and only having true figures, can find where the arrears, shortages and abuses are located (or simply inefficient use of resources).

What else is of interest to us?

In general and in general what corporate finance is, we have already considered. But this is not enough for the completeness of the disclosure of the topic. Of course, only a specialized book can give the most complete picture, but even within the framework of this article there is a desire to pay attention to aspects that were not mentioned in the title. Thus, the concept of capital (within the framework of the topic), relations and activities will be additionally considered. All this will allow you to understand corporate finance very well.

Let's say a word about capital

There are many different divisions. But we are primarily interested in the authorized capital. It is formed during the creation of the organization through property and material values that are transferred by the owner in favor of the structure. The procedure for the formation of the authorized capital largely depends on the legislation and the established regulations. So, most often attention is paid to the minimum amount of contributions, the timing of their transfer in favor of the organization and additional attraction of funds. The authorized capital is intended to receive non-current assets. Sometimes it can be targeted funding received from various extra-budgetary funds, other organizations, or even individuals. In general, the total capital is formed thanks to share premium and, sometimes, gratuitous receipts. We should not discount the sources that act as special reserves. Also, when doing business, it is popular to attract short- and long-term loans and acquire other forms of accounts payable. In all these processes, financial relations arise that express the economic component of activity. It should be noted that there are a large number of them. And all of them are of interest to corporate finance. Let's look at a few examples.

financial relations

What are they like? There are a great many classifications and approaches to their selection. Within the framework of the article, the most popular relationships will be given:

Between the organization and shareholders, participants, owners, investors. In this case, the issues of formation, and subsequently - the effective use of capital and the payment of dividends.
Between suppliers and buyers. The most pressing issues in this case are the forms, methods, terms of settlements, as well as ensuring the fulfillment of obligations.
With organizations involved in financial investments.
Subsidiaries and parent structures. Most often, they decide on the intra-corporate redistribution of funds.
with financial institutions. In this case, the most popular is the attraction and subsequent placement of free cash in the form of loans, insurance payments and reimbursements, loans, and so on.
Founders of trust management and beneficiaries.
Copyright holders.
Employer and employees. Most often, this means wages and payments from the consumption fund.
State and taxpayer. The most popular is the interaction regarding the formation of the taxable base with the subsequent accrual and implementation of fees and taxes.

Regulation of relations

It is easy to guess that the state is represented here as well. All of these relationships are to a certain extent regulated by the state. All working moments that arise during the formation and movement of funds are of interest. After all, orienting in data streams, you can notice a lot of inconsistencies. That is why the state requires that a large amount of information be transmitted to it. Indeed, according to the declaration, there may be some numbers, but according to tax invoices, they are completely different. And then it becomes clear - here he is, the violator!

A few words about activities

In order to fully understand such a difficult matter as corporate finance, you also need to know about:

current activity. This means cash flows, which are proceeds from the sale of works, services, goods, stocks of material resources, products, rents and receipt of advances. The spectrum is very wide. We can also recall the payment of wages, settlements with social funds and the budget, obtaining and repaying targeted loans and credits, paying interest, and so on.
Investment activity. This is understood as the movement of funds that are associated with capital investments. Most often, they are understood as the acquisition of equipment, intangible assets, other fixed assets (including their construction), the sale of existing ones, the receipt and repayment of targeted investments, as well as interest on them.
financial activity. This means the movement of funds that are associated with the formation and subsequent use of authorized and additional capital, the distribution of profits, investments, the sale of corporate securities, obtaining loans and borrowings, as well as the payment of interest. It also includes the repayment of debts in non-traditional ways, which may be innovation, compensation, change of persons in obligations.

Summing up, we can say that corporate finance is a set of monetary relations that are associated with the real turnover of the organization's funds, its flows, capital, income and funds.

The finances of corporations express the system of monetary relations that arise in the course of their economic activity and are necessary for the formation and use of capital, income and cash funds.

Capital(liabilities) serves as a source of formation of assets (non-current and current).

Income act in the form of proceeds from the sale of goods and other operating and non-operating income.

cash funds represented by consumption funds, accumulation and reserves. The monetary fund is a separate part of the funds of an economic entity, which has received a designated purpose and relatively independent functioning. Cash funds make up only a part of the cash in circulation of the enterprise.

Corporate finance determines the emergence of monetary relations in the process of individual circulation of funds of economic entities - this is their main function.

In a market economy, it is legitimate to recognize that corporate finance has three functions:

1. Formation of capital, income and cash funds.

2. Use of capital, income and funds.

3. Control function.

First function is necessary condition ensuring the continuity of the reproduction process. Due to the primary distribution of proceeds from the sale of goods, special funds of corporations are formed, which are reflected in their financial plans (budgets).

This function determines the implementation of the following business operations:

ü formation and replenishment of the authorized and reserve capital of the corporation;

ü attracting sources of financing from the stock market for development purposes;

ü mobilization of credits and loans from the loan capital market;

ü accumulation of monetary funds formed as part of the proceeds from the sale of goods:

ü the formation of retained earnings;

ü attraction of special purpose funds;

ü Accounting and analysis of the formation of capital, income and cash funds.

As a result, a balance is achieved between the movement of material and monetary resources, and the financial resources necessary to ensure the continuity of the production and commercial activities of the corporation and the fulfillment of all its obligations to the state and counterparties are formed.

The use of capital, income and cash funds for the purposes provided for in the financial plan (budget) of the corporation constitutes the economic content second function finance.

This function causes the following economic processes:

ü optimization of capital investment (own and borrowed) in non-current and current assets;

ü ensuring tax payments;

ü investment of free cash in the most liquid assets;

ü the use of income for the purposes of consumption, development and creation of reserves;

ü Accounting and analysis of the use of capital, income and funds.

As a result, the cost of capital of the corporation is maximized.

IN third (control) function finances are used to control the observance of cost and material proportions in the formation and use of corporate income. This function is based on the movement of financial resources, for example, when paying taxes and fees to the budget system. It provides an opportunity for the state to influence the final financial results of the activities of economic entities. The tool for implementing the control function of finance is the financial information contained in the financial statements.

This information serves as the initial basis for the calculation of analytical financial ratios characterizing financial stability, profitability, business and market activity of enterprises. Financial indicators make it possible to evaluate the results of economic activity, outline measures aimed at eliminating the identified negative aspects. Since the control function of finance is based on quantitative financial indicators(proceeds from the sale of goods, investments, assets, equity, profits, etc.), then the question of the reliability of financial information. Only under this condition can reasonable management decisions be made.

The control function, objectively inherent in finance, can be implemented in practice with greater or lesser completeness. The completeness of the implementation of the control function of finance is largely determined by the state of financial discipline in the organization.

The principles of corporate finance organization are closely related to the goals and objectives of their activities.

The principles of organization of corporate finance include the following:

1. self-regulation of economic activity;

2. self-sufficiency and self-financing;

3. division of sources of formation of working capital into own and borrowed;

4. availability of financial reserves.

The principle of self-regulation is to provide corporations with full independence in making and implementing decisions on industrial and scientific and technical development based on the available material, labor and financial resources.

The corporation directly plans its activities and determines development prospects based on the demand for manufactured products (services). The basis of operational and current plans are agreements (contracts) concluded with consumers of products (services) and suppliers of material resources. Financial plans designed to provide financial resources for the activities envisaged in production plans(business plans), as well as guarantee the interests of the state budget system. Replenishment of working capital is carried out mainly at the expense of its own financial resources (net profit), and, if necessary, at the expense of borrowed and borrowed funds.

To attract additional financial resources, corporations issue equity securities (stocks and bonds) and participate in stock exchanges.

The principle of self-sufficiency assumes that the funds invested in the development of the corporation will pay off through net profit and depreciation. These funds are designed to ensure a minimum of the normative economic efficiency of the equity capital owned by the corporation.

With self-sufficiency, the enterprise finances simple reproduction from its own sources and pays taxes to the budget system. The implementation of this principle in practice requires the cost-effective operation of all enterprises and the elimination of losses.

Unlike self-sufficiency self-financing involves not only cost-effective work, but also the formation on a commercial basis of financial resources that provide not only simple, but also expanded reproduction, as well as revenues of the budget system. The principle of self-financing implies strengthening the liability of corporations for compliance with contractual obligations, credit, settlement and tax discipline. Payment of penalties for violation of the terms of business contracts, as well as compensation for losses caused to other organizations, does not release the enterprise (without the consent of consumers) from fulfilling its obligations to supply products (works, services).

To implement the principle of self-financing, a number of conditions must be met:

ü accumulation of own capital in an amount sufficient to cover the costs not only for current, but also for investment activities;

ü choice of rational directions for capital investment;

ü constant renewal of fixed capital;

ü flexible response to the needs of the commodity and financial markets.

The division of sources of formation of working capital into own and borrowed is determined by the features of technology and organization of production in individual sectors of the economy.

ABOUT formation of financial reserves necessary to ensure the sustainable operation of corporations in the face of possible fluctuations in market conditions, increased liability for failure to fulfill their obligations to partners. In joint-stock companies, financial reserves are formed in accordance with the charter of the enterprise from net profit.

the field of activity (commercial and non-commercial activity);

ü types (directions) of activity (export, import); sectoral affiliation (industry, agriculture, transport, construction, trade, etc.);

ü organizational and legal forms of entrepreneurial activity.

Compliance with these principles in practice ensures the financial stability, solvency, profitability and business activity of corporations.

The principles of organizing the finances of enterprises and corporations are closely related to the goals and objectives of their activities, certain constituent documents.

The principles of financial organization are as follows:
Self-regulation of economic activity.
Self-sufficiency and self-financing.
Separation of sources of formation of working capital into own and borrowed.
Availability of financial reserves.

The principle of self-regulation is to provide enterprises (corporations) with complete independence in making and implementing decisions on industrial and scientific and technical development based on the available material, labor and financial resources.

An enterprise (corporation) directly plans its activities and determines development prospects based on the demand for manufactured products (services). The basis of operational and current plans are agreements (contracts) concluded with consumers of products (services) and suppliers of material resources. Financial plans are designed to provide financial resources for the activities provided for in production plans (business plans), as well as to guarantee the interests of the state budget system. Replenishment of working capital is carried out mainly at the expense of its own financial resources (net profit), and, if necessary, at the expense of borrowed and borrowed funds.

To attract additional financial resources, corporations issue equity securities (stocks and bonds) and participate in stock exchanges.

The principle of self-sufficiency assumes that the funds invested in the development of the corporation will pay off through net profit and depreciation. These funds are designed to ensure a minimum of the normative economic efficiency of the company's (corporation's) own capital.

In contrast to self-sufficiency, self-financing implies not only cost-effective work, but also the formation of financial resources on a commercial basis, providing not only simple, but also expanded reproduction, as well as revenues of the budget system. The principle of self-financing implies strengthening the liability of enterprises (corporations) for compliance with contractual obligations, credit, settlement and tax discipline. Payment of penalties for violation of the terms of business contracts, as well as compensation for losses caused to other organizations, does not release the enterprise (without the consent of consumers) from fulfilling its obligations to supply products (works, services).

To implement the principle of self-financing, a number of conditions must be met:
accumulation of own capital in an amount sufficient to cover the costs not only for current, but also for investment activities;
choice of rational directions for capital investment;
constant renewal of fixed capital;
flexible response to the needs of the commodity and financial markets.

Let's consider these conditions in more detail. The content of the first condition is the segregation of funds to finance current and investment activities. These funds are concentrated on the settlement accounts of an economic entity until their further distribution. From the position of financial management, it is important to carry out the periodization of cash, that is, it is not distributed according to the time spent in real circulation for short-term and long-term funds.

The second condition implies the definition of such ways of investing capital that lead to the strengthening of the financial condition of the enterprise and increase its competitiveness in the commodity and financial markets. Compliance with this condition is associated with an assessment of the level of self-financing, the development of criteria for such an assessment, with an analysis of the movement of capital by type of activity of the enterprise.

The fourth condition of self-financing involves the implementation of such a financial policy in which the enterprise can function normally in conditions of fierce competition in the commodity and financial markets. Such a policy is aimed at reducing production costs and distribution and at increasing profits. Self-financing, based on high yens, contributes to an increase in the money supply and becomes a generator of inflationary processes in the national economy. Therefore, in order to increase the level of self-financing, economic entities are obliged to clearly respond to market needs for relevant goods (services). The mechanism for responding to market needs involves specialization, diversification and concentration of production. The orientation of this mechanism should be linked to the tax, price and investment policy of the state. The application of the principle of self-financing is an important factor in preventing the bankruptcy of an economic entity and creates an opportunity for the effective use of financial management.

The division of sources of formation of working capital into own and borrowed is determined by the peculiarities of technology and organization of production in certain sectors of the economy. In sectors with a seasonal nature of production, the share of borrowed sources for the formation of working capital (trade, food industry, agriculture, etc.) is increasing. In sectors with a non-seasonal nature of production (heavy industry, transport, communications), own working capital prevails as sources of working capital.

The formation of financial reserves is necessary to ensure the stable operation of enterprises (corporations) in the face of possible fluctuations in market conditions, increased liability for failure to fulfill their obligations to partners. In joint-stock companies, financial reserves are legally formed from net profit. For other economic entities, their formation is regulated by constituent documents.

The implementation of these principles in practice should be carried out when developing a financial policy and organizing a financial management system for economic entities. This should take into account:
scope of activity (commercial and non-commercial activities);
types (directions) of activity (export, import);
sectoral affiliation (industry, agriculture, transport, construction, trade, etc.);
organizational and legal forms of entrepreneurial activity.

Compliance with these principles in practice ensures financial stability, solvency, profitability and business activity of enterprises (corporations).