Financial Rights Allocation Based On Network Environment

With the development of Web technology and the rapid rise and popularity of the Internet, a variety of network technology has been applied to business management. On the one hand, divisions of the departments and transactions are more detailed, and their association and collaboration gets closer and closer, which makes the information of different departments maintain a high degree of consistency, synchronization and integrity, that is commonly referred to as 'Integration of finance and operation'. On the other hand, the global network urges financial management to form a new trend---networking and intelligent, and it allows different departments to share information, no matter how far away they are. With the support of network, it's possible to proceed financial data processing and control of financial management, even there is a long way between two places, so that internal and external stakeholders can achieve integration. Meanwhile, the traditional business processes and organizational structure will be changed, which affect the reasonableness and effectiveness of property allocation. Therefore, it's particularly necessary to rethink the financial rights allocation.Financial rights are composed of the rights from different levels, which emphasize the domination and use of capital and assets. Financial rights allocation is to distribute these rights between different stakeholders, and it's the core content of financial governance. Effective financial rights allocation is the key factor of financial governance, and also ensures the improvement of corporate-governance efficiency. This paper, mainly based on the theory of corporation governance, property rights theory, financial-rights flows theory and financial stratified theory, combined with macro-economic environment of network, analyze the influence of network on financial governance and allocation, and then describes how network affects them.This paper is divided into five parts:The first part clarifies the key position of financial rights allocation in corporate governance, reviews the theories, materials, and documents on financial rights from home and abroad, and then evaluates the views.In western countries, relevant research integrates the company's finance and governance, mainly including the agent cost theory (incentive theory), the signal model theory, (information transmission theory), the control rights theory, all of which are about the capital structure, while domestic scholars of the property right proceed a preliminary exploration of the theory, such as financial distribution theory, financial stratification theory, financial governance structure theory and the financial-rights flows theory.The second part starts from the theory of property rights theory, raises the concept of financial rights, which includes.financial decision-making right, financial executive right, financial monitoring right, and so on. Then illuminate the theoretical basis of financial rights allocation, and followed by analysis the relationship among financial rights allocation, financial governance and corporation governance, that is, financial rights allocation is the core of financial governance, theory of corporate governance guides financial management, and financial management plays an essential complementary role on corporate governance. Finally, analyze the main factors affecting financial rights allocation from the enterprise's internal and external aspects, Leads to the next section----the impact of network environment on financial rights allocation.The third part pointed out that with the development of network technology, the traditional financial management can not meet the needs of economic development, so financial governance is facing new opportunities and challenges. The network enhances the timeliness of financial decision-making, expands the space of financial management, and also helps integrate the internal and external value chain, but it also would increase the financial cost, and lead to the security risk of information and technology. Network environment has so much impact on the financial management, that it will definitely cause a series of change to financial right allocation. For example, it clarifies the limits of financial rights, focuses on human capital and creditors, and the scope supervision rights are also further expanded.The fourth part points out that in the network environment, because of information sharing, both of the external and internal stakeholders are able to participate in the governance at the same time, and then it specify what's the changes of different stakeholders. First, the Board can incorporate more information for decision-making; second, executives can make use of executive information systems to achieve the decomposition and concentration of rights, and gradually share the financial benefits; third, the board of supervisors may be carried out simultaneously supervision; fifth, different functions staff offer each other mutual supervision; sixth, external stakeholders will be able to get various kinds of information relevant,and respond quickly against abnormities.Finally, there is a brief summary of this paper. The financial rights allocation concerned in this paper is only an ideal state. Although the network environment of technological development has brought a lot of convenience to the subject of rights, in practical governance, taking into account of cost factor and the right to appeal, we should consider the actual situation of enterprises.The main innovation of this paper is the analysis of impact what the network environment has on the financial governance and financial rights allocation, and what's the direct result of this influence. However, due to the limited academic standards and research capacity, the problem is not specific enough. And because of the lack of work experience, this paper is just to stay in the theoretical stage, and still lacks a specific case for analysis and support. This paper argues that in the following research of financial rights allocation, here are the points that we can study on. First, there is not a set of theory about financial rights allocation, scholars always emphasize on subjects, objects, principles, and influenced factors. We can do some deep research with the guide of property economics and enterprise theory, to form a theoretical system. Second, development of network technology is endless, and the study of the financial right allocation should also be closely integrated with environment changes, and it's better to show how to allocate the financial rights to adapt to the new environment with a practical case.