The Research Of Company’s Financial Strategy Based On Sustainable Growth Theory

With the development of economy, the competitive situations of enterprises are complex. Facing thecurrent circumstances, enterprises should make a comprehensive development strategy to keep sustainablegrowth. The financial strategy is especially one of the most important factors to ensure the safety ofcorporate cash flow, to promote the sustainable development of enterprises. According to the researchbackground, the paper thoroughly analyze corporate financial strategy using the Sustainable Growth Theory.This paper explains the relationship between financial strategy and Sustainable Growth Theory combiningthe specific examples of study listed companies in Beijing. From the above research, the paper shows a directproportion of sustainable growth rate to financial strategy indicators. The paper also presents that businessmanagers reasonably use the financing strategy, distribution strategy and investment strategy to guaranteesustainable growth of enterprises.The paper highlights enterprises should make different strategies at different stages based on the financialmodel of sustainable growth. The first stage of the enterprises should pay attention to the ability of financing,with the appropriate use of financial leverage to promote the economy of enterprises. The second stage of theenterprises should plan a integrated strategy of financing, allocation and investment to keep the balancebetween risk and return with the scientific and appropriate method. The paper aims to help enterprises have abetter understanding of its own development stage and make a suitable financial strategies.