Study On Financial Strategies Of Sustainable Growth In Corporate Value

With the rapid development of economy, we realize the sustainable growth in enterprise's value rests with the value-creation capability. This dissertation argues the influence to the value-creation capability from the strategical decision-making, indicates that there are remarkable correlativities between the sustainable growth in enterprise's value and the strategical decision-making. Basing on the above conclusion, the dissertation sets up the dynamic model of financial strategy, which can promote the effective configuration of enterprise financial resources, and consequently upgrades the value-creation capability, boosts up the holistic competitive ability.There is a phenomenon in China that the top management level in listed companies is pursuing the growth at very fast speed, the dissertation pointes out that growing too fast may leads to financial risks and bankruptcy of the firm. Therefore, the sustainable growth in enterprise's value shoule be the aim of the firm. And it can reflect the real value-creation capability essentially.The dissertation uses EVA as index to evaluate value-creation, which is the gap between sales growth rate and sustainable growth rate. Basing on this index, the dissertation sets up the financial strategy model based on the sustainable growth in enterprise's value, establishs different financial strategies of investment, financing and distribution adapting to different lifecycle firms. This is a dynamic financial strategy which can adapt to the whole developmental processof the firm. In the dissertation, the author explicates the EVA applications in list firms of China with many cases.The dissertation points out appropriate financial strategy will raise enterprise's value-creation capability. With empirical datum, we found sustainable growth in enterprise's value is significantly correlated with financial strategy, which can be better shown in superior enterprises. The dissertation believes financial strategy decision is the key factor to the sustainable growth in enterprise's value. This means suitable matched strategies will increase enterprise's value for superior enterprises.The study in the dissertation is just exploratory attempt, in order to make financial strategy known to management level in listed companies in China, and expect them to realize the decisive effect financial strategy imposed upon corporate sustainable growth, then make full use of varieties of financial resources to create enterprise's value. It's expected that the study will give management level some new perspectives on formulation of corporate financial strategy and consummation of VBM system.