The Research Of The Relationship Between Financial Strategy,the Financial Policy, The Financial Achievements And The Way Of Entry Capital Market Of Chinese Group Company

Most economic organizations are likely to be evolved from a simple unit to large-scale and group model. In China, enterprises are experiencing dramatic development of grouping and decentralized operation. The two concepts of group companies and corporate group are close-connected whilst differentiating from each other. This Research, in the context of this situation, focuses on the group companies.Corporate strategies are typically divided into general development, competition and functions. However, financing strategy also makes critical contribution to the whole strategic matrix. This strategy, particularly the part of fund-raising, is designed and implemented relying on asset market, in which the financing speed and quality are supposed to satisfy the group’s expectations of expansion schedule and low cost. Therefore, whether or not to be listed has been put on top of the strategic agenda of the group companiesAt present, there are two types for companies to be listed, namely holistic listing and carve-out. For holistic listing, corporations are required to reform their substantial assets and whole business into joint stock companies, whereas in carve-out, they should reform part of their assets, business or some subsidiaries into joint stock companies. According to previous researches, the better economic benefits a corporation owns, the more attention it gives to financial strategic management, and in turn, the better economic benefits it obtains.Further, designing an appropriate financial strategy is only a start, whereas how to effectively implement it is really critical to the success. In the context of companies, financial policy is defined as a set of guidance and rules that are designed by policy makers for regulation, instruction, stimulation and restriction of financial activities. Financial performance, represented by financial data, is designed to explain business performance and efficiency of the corporations.The three above-mentioned concepts, namely financial strategy, financial policy and financial performance, are inter-dependent. Briefly, financial performance is generally regarded as the results of implementation of financial strategies, which are designed by combining current financial performance with expected financial goals. The two concepts are bridged by financial policy, which refer to measures of implementing financial strategies in terms of financing, funding and profit distribution, etc, for achieving goals of financial performance.In the context of special social system of China, whether does carve-out or going public as a whole increase or decrease the financial performance? How does the way of being listed impact on the financial strategy-making of a group? How do financial strategic behaviors of listed company influence its short-term and long-term performance? Whether does the way of being listed change the financial behaviors and financial policies or effectively improve the financial performance? All these problems need further exploration.The research of this article mainly makes breakthrough from the following aspects:Firstly, investigate the relationship of form of corporation organization and capital market and financing from the perspective of the development of economic organization forms. As an economic organization becomes large and incorporates into a group, it has the need of going public and financing because the expansion in large scale of the group needs financing from the capital market.Second, analyze financial strategy, financial policy, financial performance and the relevant among them by targeting group companies as research principal. Regardless of single enterprise or group compan7, financial strategy, financial policy and financial performance doesn’t only include interaction among patent companies of the group,but also includes those in affiliates and even sub-affiliates. Finally, financial performance of group companies is obtained by summarizing performances of companies in each level. Therefore, the research on the relevance among such three factors from the perspective of group companies is of great significance.Third, take overall consideration of the relevance among listing manner and financial performance, financial policy and financial strategy for group companies in our country, analyze the relevance among financial performance, financial policy and financial strategy in the level of group companies and under the background of being listed.Through the investigation in this paper, it makes deeper understanding of inherent relationship among financial strategy, financial policy and financial performance as well as essence and regularity of financial management, provides investors the reference for the reasonable selection of investment strategy from the perspectives of financial strategy and financial policy in groups in order to assist securities supervision department to strengthen supervision and stipulate regulation. The analysis on listing manner and performance of group offers basis and inspiration to large and medium scale enterprise and group intending to be listed. The analysis on present status of being listed mode of group companies and the relationship between listing mode and company performance is offered to numerous group companies and state-owned capital administration to recognize conditions required by listing, and offered to state-owned large and medium scale enterprise and group which are being listed or intends to be listed as operable reference. Also, this topic research offers theoretical basis for investors in making scientific investment decision, and facilitates group companies and corresponding listed companies to be concerned by investors.