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Dynamic Optimization Of Financial Strategy Based On Sustainable Growth Of Enterprise Value

Posted on:2013-02-08Degree:MasterType:Thesis
Country:ChinaCandidate:C L LiFull Text:PDF
GTID:2269330374964869Subject:Accounting
Abstract/Summary:PDF Full Text Request
Along with the ever-changing internal and external environment in modem enterprise, the idea of strategic management has been generally adopted gradually, and extended to the various important areas of business management. Financial strategy is an exploration and innovation that lead the strategic thinking into the area of financial management. Corporate financial strategy is a relatively new research area of the modern financial theory, it plan the important issues of enterprises with the global position and long-term perspective. The current research on financial strategy theory and related fields has made some achievements. However, the research on the application of financial strategy in an enterprise is still insufficient. This paper study on the dynamic optimization of financial strategies based on sustainable growth of enterprises. We hope to get some constructive conclusions, enterprises can adjust and optimize the financial strategy in the changeable market environment.In this paper, we take the sustainable growth of enterprise value as financial strategic objectives. The financial performance of sustainable development is sustainable growth, we use the sustainable growth rate as the measure index. In this paper, we choose the indicator of economic value added (EVA) for the measurement of value creation. On the basis of value creation theory and sustainable growth theory, we combed the financial strategy matrix model, which based on the value creation/rate of increment. This is a dynamic financial strategy model which is able to adapt to the whole development process of the firm. According to the specific situation, enterprises could adjust their financial strategy, which can promote the sustainable development of enterprises.In order to verify the feasibility of the application of the model, this paper took Sany Heavy Industry Company Limited as an example. Then we sorted out annual financial strategies implemented by the company. By comparison with the strategic choice in the model, we found that the company has optimum financial strategy, the financial strategies of Sany is basically consistent with the financial strategy based on financial strategy matrix model. It also verified the scientific and practical nature of the use of financial strategy matrix model to optimize corporate financial strategy. The model can guide enterprises optimize the current financial strategy dynamically, and achieve the sustainable growth of enterprise value.
Keywords/Search Tags:financial strategy, dynamic optimization, sustainable growth rate, valuecreation
PDF Full Text Request
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