Research On The Impact Of Financial Strategic Transition On Business Performance

With the acceleration of the pace of social and economic development,the proportion of Listed Companies in the national economy continues to increase.The impact of the company’s operating conditions and operating performance on the national economy can not be underestimated.In addition,China’s economic growth has shifted from "pursuing the speed of economic growth" to "pursuing the quality of economic growth",and the national economic development is facing structural adjustment.Under this background,many enterprises in China begin to implement strategic transformation.Therefore,the study of the strategic transformation of enterprises is the most important part of the current financial management.How the financial strategy formulated and implemented in the process of transformation affects the business performance,and how to improve the scientificity of the formulation of relevant strategies are all the difficult problems that enterprises should pay attention to in the stage of growth and development.This paper makes a comprehensive and in-depth study of the impact of financial strategy on business performance in the process of transformation,aiming to remind enterprises to attach importance to the important role of financial strategy transformation in their daily decision-making.To clarify the impact of financial strategy transformation on daily production and operation is to explore ways to improve the scientific strategic decision-making of enterprises,so as to improve the operating conditions and improve the level of operating performance.Based on the annual financial data published by Guanglianda from 2012 to 2017,this paper studies the impact of Guanglianda’s financial strategy transformation on business performance by means of literature research,case analysis and qualitative and quantitative methods.Firstly,this paper studies the impact of Guanglianda’s financial strategy transformation on business performance under the background of its financial strategy transformation.-This paper makes a concrete analysis of the transformation of Guanglian Da’s financial strategy in 2017,and finds that the investment field and amount,financing amount and dividend distribution proportionof Guanglian Da have been essentially adjusted during the period of financial strategy transformation.Generally speaking,Guanglian Da’s investment strategy has been transformed from "expansionary" investment strategy to "contractive" investment strategy in 2012-2015,and Guangzhou Da-2017 has been transformed from "expansionary" investment strategy to "contractive" investment strategy.Lianda’s investment strategy has changed from a "contraction" investment strategy to a "slow expansion" investment strategy;its financing strategy has changed from a "contraction" financing strategy before 2016 to an "expansion" financing strategy after 2016;and its distribution strategy has changed from a "high delivery" distribution strategy before 2015 to a "low delivery" distribution strategy after 2015.Strategy.Secondly,on the basis of the financial strategy transformation,this paper chooses the commonly used business performance measurement indicators(total profit,return on net assets,economic value added EVA)to analyze the impact of the financial strategy transformation of Guanglian Dalian on business performance in2012-2017.Through comparative study,it is found that: for the investment strategy transformation,the change trend of business performance and total investment of Guanglian Dalian Dalian are different.The change trend is the same,which shows that the expansion of investment has an incentive effect on Guanglian Dalian’s operating performance,and the increase of total investment helps to improve its operating performance.In view of the transformation of financing strategy,this paper analyses the proportion of capital cost to total profit and economic added value from the perspective of capital cost,which is consistent with the change trend of total external financing,and shows that the expansion of Guanglian Dalian’s financing restrains operating performance.In terms of distribution strategy,before the transformation of Guanglianda’s financial strategy,there was a reverse relationship between operating performance and cash dividend ratio,and the "high transfer" distribution strategy was not conducive to improving business performance.After the transformation of financial strategy,there was a positive relationship between operating performance and cash dividend ratio,and a high proportion of dividend distribution was conducive to improving business performance.Finally,based on the analysis of the impact of Guanglian Dalian’s financial strategy transformation on business performance,this paper puts forward some constructive suggestions on the implementation of financial strategy transformation in the same industry from the aspects of investment strategy transformation,financing strategy transformation,distribution strategy transformation,financial strategy implementation and business performance evaluation.In view of the suggestions on financial strategy implementation and business performance evaluation,Enterprises Firstly,it is necessary to rationally arrange the financial strategy transformation,strengthen the integration of investment strategy and financing strategy implementation;secondly,it is necessary to build a sound performance evaluation mechanism to quantify the profit and loss of the financial strategy transformation;finally,it is necessary to shorten the waiting period of investment and quickly form the profitability.In view of the transformation process of investment strategy,enterprises need to establish a prior and post-event stroke control mechanism and emergency response system for related investment to enhance risk aversion awareness.In view of the transformation process of financing strategy,when choosing financing channels,enterprises should pay attention to reducing financial risks and selecting the best financing channels.In view of the transformation process of distribution strategy,enterprises should first rationally implement investment,financing and dividend policies to improve their operating performance.Secondly,when implementing dividend distribution,enterprises should rationally control the allocation of funds and strengthen the financial management process of the allocation of funds.Finally,external supervision should be introduced to prevent managers from indirectly transferring benefits to themselves and protect profits during the transformation of financial strategy.Stakeholder interests.Through the above research and analysis,this paper can provide direction for enterprises how to improve the level of strategic decision-making and operational performance,help Guanglianda to improve the feasibility and reliability of the follow-up financial strategy transformation measures,and also provide reference for other financial strategy transformation enterprises how to reduce business risks and improve business performance during the strategictransformation period.