Research On The Financial Decision Of Thermal Power Enterprise Based On Value Creation

Thermal power enterprises are important state-owned enterprises in China. The proportion of thermal power generation in total generating capacity achieved 77.7 percent in January-June, 2015, which played vital role on the whole social power. Financial decision not only decides thermal power enterprises' asset allocation, affects the enterprises' capital flows,but also determines the number of aspects of the enterprise funds and the cost of capital, and becomes necessary condition for the sustainable development of thermal power enterprises.Value creation is important characteristic of modern management and can not be ignored. From the perspective of value creation, this paper researches financial decision in thermal power enterprises, in order to improve the level of financial decision and promote the sustainable growth of enterprise value at last.Any enterprise needs to consider many factors in the process of financial decision.Thermal power enterprises need to consider the characteristics of large amount of investment and regulation of government in the investment decision-making and consider the factor of cost in operating decision-making. These factors is relatively simple only in the operating or investment decisions, but these factors will become more complex when considered together.Financial decision manifests itself as systematic process, systematic and procedural characteristics is important when making financial decisions. From the existing research results, systematic and procedural characteristics about financial decision is still insufficiency.Second, dynamic and chronicity is also important features of modern financial decision.Thirdly the thermal power market is similar to oligopolistic market. It's necessary to consider the competition factor. This paper argues that if systemic, procedural, dynamic, long-term and competitive problems were not effectively resolved, they will have negative impact on the results of financial decisions to a certain degree.Based on the research status of value creation and financial decision of thermal power enterprises, combined with problems of financial decision in thermal power enterprises, the research is focused on three aspects of financing decision, investment decision and management decision based on value creation and analyses the long-term behavior of enterprises. This paper uses the method of system dynamics to establish the SD model of financial decision in thermal power plants, in order to put the contents of financial decisions in one set and reflect the systematic, procedural, dynamic and long-term characteristics of financial decisions. Afterwards, this paper makes use of game theory to optimize this model in order to solve the problem of competition in financial decision making and solution ofinterval data. The purpose of this paper is to find new idea and method of financial decision.At last, we draw the feasibility of this model through the case analysis of a thermal power enterprise. At the same time, this paper provides some suggestions for the financial decision-making of thermal power enterprises. The research result of this paper is valuable to application.