Enterprise Budget Management.doc

enterprise budget management abstract this paper reviews the management of an enterprise budget for the relevant research literature, discusses the content and its stakeholders, budget management and business relationship between the stakeholders in attempts to establish a basic framework for budget management, in the stakeholder theory, discussed under the enterprise budget management. in accordance with corporate contract theory, the firm is a collection of a series of contracts is a community of interests. the main business interests, including owners, creditors, employees, government, etc., they all affect the business or by business impact and risk. corporate governance and business interests of the main goal should be related to a number of interests and mutual interaction of the main result of a compromise, enterprise management as a major achievement of the interests of the principal objectives. i. review of the literature (a) budget management is a management accounting in a study of the content of much of our attention, and foreign scholars in the budget management mode has been some success mainly in: 1.coopers and lybrand deloitte traditional budgeting methods and total quality management, job costing and job management combine to form operating budget model (abb). operating budget is under the operation or business volume to the preparation of budgets to ensure that the allocation of corporate resources in line with operational requirements, reflecting the effects of competitive pressures, companies renewed interest in production operations. 2. kaplan and norton (2000) while maintaining the original budget, based on the budget by the balanced scorecard and strategy, non-financial indicators linked together so that the budget adapt to the new environment, the formation of strategic budget management model. connecting link between budgets and strategy is the balanced scorecard as a business performance measurement and management tool for implementation of the strategy, the effective implementation of resource allocation and strategy for the unification of the budget and strategic closely linked. 3. hope, fraser (1998) “beyond budgeting round table (bbrt)” research forum, person in charge, they have made “beyond budgeting” concept. beyond the budget reflects a high degree of information technology companies and service-oriented society, the importance of strategic operational control. but how to systematically resolve the social attributes and budget to manage their own properties associated with the accounting issues is an important issue. (b) of china from the 20th century, 80, began the introduction of foreign management accounting theory and practice, budget management, research and application began in academia, practitioners popularity, considerable progress has been made so far 1. wang bin (1999), based on product life-cycle theory, the capital budget is divided into the main budget management, marketing budget, the main cost estimates and cash-based budget, the main four types of models. this view is more suitable varieties of a single enterprise, the more varieties of enterprise groups, because the life cycle of each product is different from the stage of different, according to the budget of the establishment of life-cycle model may lose significance. 2. tang gu-liang (2004), a comprehensive strategy for the budget-oriented as the starting point to build the strategic direction proposed under the budget target system model. the model emphasizes budget targets should be based on growth, returns and risk control of these three dimensions to design and selection of a pluralistic, linkage, and the risks and benefits system of checks and balances of the budgetary targets. the model did not involve the selection of non-financial indicators and design, but did not specify three-dimensional design and kpi indicators of how the system architecture and lock forma income statement, balance sheet and cash flow statements and other budget statements. the above theoretical basis of literature from different research budget management of enterprises, and achieved very good results. but i have not yet found the stakeholder theory of the enterprise budget management literature. second, stakeholders and the relationship between content and its relationship with the budget management stakeholders, the concept was first proposed in 1963 at stanford research institute, an internal memo. the report will be stakeholder is defined as “corporate existence is inseparable from its support of the various groups” (freeman, 1983). 70 mid-20th century, emphasizing civil rights, feminism, environmentalism and consumer interests of the protectionist social context, stakeholder theory has been further developed. the 20th century, 80s, freeman in its “shareholders and stakeholders: a new on corporate governance point of view,” a text, in order to give stakeholders a more comprehensive definition. he will stakeholders be divided into broad and narrow two levels: broad stakeholder is anyone who can affect achievement of the objectives to achieve business goals, or may be subject to the impact of identifiable organizations and individuals; narrow stakeholders are the an enterprise for continued survival is dependent on all identifiable organizations or individuals (freeman, 1983). this broad definition of almost all exist, and even now do not exist and will occur in which individuals or groups have the covers, so that the study to stakeholders not able to do. a noteworthy research trends are: many scholars began to explore stakeholders and enterprises defined as those who have a certain relationship and in the enterprise, which must be dedicated investment people. these specific investments may be physical capital investment may also be investment in human capital through these specific investments, they business or close, or loosely linked to its close depends on the size of its investment-specific nature. arthur andersen “global best practices database” (global best practice) in the definition of the budget: the budget is a systematic approach to the allocation of corporate financial, physical and human and other resources, in order to achieve the established business strategic objectives. enterprises through the budget to monitor progress in implementing the strategic objectives, help to control expenditure and forecast corporate cash flow and profits. budget management is a governance mechanism within the enterprise will inevitably be subject to business impact of the various stakeholders. it can be said, the budget management and stakeholders in the environment between the system and the relationship between the stakeholders to a large extent affect all aspects of budget management. at the same time, enterprises are also the smooth progress of budget management across the enterprise can not do without the active participation of stakeholders. enterprise budget management with the various stakeholders dealing with economic relations, the coordination of economic contradictions, the allocation of economic interests, an important measure. on the same economic matters, usually due to different budgeting, budget control policies have different or even opposite results, thus affecting the interests of all stakeholders, leading to the various stakeholders to make different decisions, ultimately affect the allocation of resources the efficiency and effectiveness. therefore, the budget management of all stakeholders in essence, economic and political interests of the game more balanced results. reposted elsewhere in the paper for free download .com third, stakeholders, under the basic framework for budget management companies financial objectives to determine enterprise value depends on the orientation, the development of enterprise value-oriented interpretation of the financial goal. enterprise value-oriented development is basically gone through three historical phases: the first 30 years in the 20th century, the enterprises value orientation is a “shareholder supreme”, enterprises of all organizational activities carried out around the interests of shareholders, as the enterprise value-oriented specific embodiment of this stage of the financial goals are also put forward the interests of shareholders as the main body, such as maximizing net profit, shareholder value maximization, etc.; the second phase of 30 years in the 20th century to the late 80s, is a corporate value-oriented phase of the transition debate , since the great depression of 30 years, people began to “shareholders extreme” cast doubt on the value-oriented, enterprises started to pay attention, in addition to the interests of stakeholders other than shareholders, the united states in 1939, the famous petter. letton bill for the first time in the form of the law on corporate social responsibility and stakeholder values, so that people began to accept the values of stakeholders; the third stage in the 20th century, mid-and late 80s, in the united states because of “hostile acquisition “and its impact on corporate stakeholders have brought about negative effects, so that maximizing shareholder value has been challenged. many scholars, researchers have noted this point, put forward a financial objective is to maximize the value of stakeholders point of view, and gradually accepted by all. determine the stakeholders is the crux of the problem, from the relevance and investment-specific two angles to define the business stakeholders are very useful. here is defined as the stakeholders in the enterprise, which must be dedicated investment and to bear a certain risk individuals or groups, their activities can affect the achievement of the objectives of the enterprise, or by the business process to achieve its objectives, including the shareholders , operators, employees, customers, creditors, governments, suppliers, communities, these eight groups. strictly speaking, the community of such groups are generally not of a specific investment companies, but stressed that environmental protection green production today, communities are often vulnerabl