Author(s)

Shen Si

Corresponding Author

Shen Si

Abstract

The purpose of this article is to explore the special challenges and strategies of venture enterprises in setting Enterprise Financial Management (EFM) objectives, and to provide a clearer and more systematic framework for setting EFM objectives for venture enterprises from the perspective of enterprise contract theory. Firstly, the research reviews the basic concept, development and application of enterprise contract theory in EFM, and makes clear the internal relationship between stakeholder theory and enterprise contract. Subsequently, the article deeply analyzes the characteristics and importance of EFM objectives of start-up enterprises, and points out its uniqueness and flexibility under the conditions of limited resources and uncertain market environment. In this article, the EFM objectives such as profit maximization, shareholder wealth maximization, enterprise value maximization and stakeholder income maximization are discussed in detail by various methods, and the advantages, limitations and applicable scenarios of each objective are revealed. It is found that entrepreneurial enterprises should flexibly choose and adjust their EFM objectives according to their own development stages, resource conditions and market environment in order to achieve long-term sustainable development.

Keywords

Enterprise financial management; Enterprise contract theory; Stakeholder; Flexible adjustment mechanism