Teaching Team of Advanced Financial Management Advanced financial management PPT Accounting School, University of Zhongnan Economics and Law Teaching team of Advanced Finanicial Management modified in April,2008 1

Teaching Team of Advanced Financial Management Attend class on time 2.Finish in-class and after class activities on time and take part in class discussion 3.Previews before class and revisions after class Learning requirements 2

Teaching Team of Advanced Financial Management Chapter 1 an overview Brief contents: Re-examining the essentials of finance History and development of financial management 3

Teaching Team of Advanced Financial Management The essentials of finance The status of financial management in corporate governance Financial management by decentralization and by levels Re-examining the essentials of finance 4

Teaching Team of Advanced Financial Management Essentials of finance 1.“Distribution of resource” view 2.“Value movement” theory 3.“Funds movement” theory 4.“Distribution relationship” theory 5.“Currency relationship” theory

Teaching Team of Advanced Financial Management Status of financial management in corporate governance Corporate governance naturerights Board of shareholders Subject of property rights Ultimate control Board of directors Subject of legal person wealth rights Operating and decision- making managers Subject of legal person proxy rights Operating and directing Supervisory committee Subject of shareholders’ supervisory rights Supervising CFO Depending on nature of the firm Financial decision- making and financial co- ordinating

Teaching Team of Advanced Financial Management Chart of corporate organizational structure Board of directors CEO Vice Director (COO) Vice Director （ CFO ） TreasurerController Vice Director （ CMO ） Produce and provide accounting information Financing, investment, day to day operation and earnings distribution

Teaching Team of Advanced Financial Management Financial management by decentralization and by levels 1.Finance of capital providers 2.Finance of operating managers 3.Finance of financial managers

Teaching Team of Advanced Financial Management History and development of financial management in western countries History and development of financial management in China History and development of financial management 9

Teaching Team of Advanced Financial Management Stage of financing management 2.Stage of internal control 3.Stage of investment management 4.Stage of multinational financial management 5.Stage of financial management in times of knowledge-economics History and development of financial management in western countries 10

Teaching Team of Advanced Financial Management Thomas LGreene, a US scholar, published Corporate Finance, the first book on financial management in the world in 1897, indicating the establishment of financial management as an independent subject. Put great research emphasis on financing 1. Stage of financing management 11

Teaching Team of Advanced Financial Management Focus of financial management turned from expansive external financing to defensive corporate existence Focus of research on financial management transferred to internal control 2. Stage of internal control 12

Teaching Team of Advanced Financial Management Effective internal distribution of capital in firms was given more and more emphasis Financial managers began to manage all the funds Gradual applications of various complicated econometric models 3. Stage of investment management （ 1/2 ） 13

Teaching Team of Advanced Financial Management Methods of financial analysis, financial forecast, financial planning and financial control were widely used Emphasis on corporate overall value Stage of investment management （ 2/2 ）

Teaching Team of Advanced Financial Management Exchange rate risk management Multinational investment management Multinational financing management Internal transfer price management 4. Stage of multinational financial management 15

Teaching Team of Advanced Financial Management Computer-assisted financial decision-making system Internet finance 5. Stage of financial management in times of knowledge-economics 16

Teaching Team of Advanced Financial Management “National finance”, “corporate finance” and “financial control” in ancient and modern times 2.2. Financial developments and reforms in half a century before the establishment of PRC 3.3. Financial management of state-owned-enterprises during the period after the establishment of PRC and before the reform and open policy Financial management theories and practices in China （ 1/2 ） 17

Teaching Team of Advanced Financial Management Financial reforms during 1978 to 1993, before the implementation of “2 standards and 2 systems” 5. Financial creations after the implementation of “2 standards and 2 systems”in A set of financial management laws, regulations, systems and methods was established and is being improved 18 Financial management theories and practices in China （ 2/2 ）

Teaching Team of Advanced Financial Management