Research On Financial Policy Of ZhangQu Corp. Based On Value Model Decomposition

In recent years,with the popularity of smart phones,wireless network technology and 4G network technology,the mobile game industry has ushered in unprecedented opportunities for development.Faced in the great market development conditions and demand,small and medium-sized game companies tend to have not enough resources in the market due to limited research and development capabilities.In order to pursue the rapid expansion of business scale,some game companies will make financial decisions that are not conducive to the long-term development and value creation of the company.Faced with such problems,it is important for these game companies to correctly understand the status of business development and formulate appropriate financial strategies.First of all,this paper summarizes the literature on value model and financial strategy,providing a theoretical basis for this case study.Secondly,the theoretical framework of financial policy research based on the decomposition of value model is set up,and it is pointed out that this article finds out the problems,finds out the reasons and corrections.Thirdly,through the three-dimensional analysis of the financial status of the palmtop technology,it discovered that there were problems in its financial policies,and then used the decomposition model of the value model to combine the agency cost theory with four aspects: value creation ability,profitability,ability to create cash,and growth ability.The theory of financing order,the theory of sustainable growth,the theory of financial strategy matrix and the theory of dividend signals are used to analyze the specific causes of the development of the technology-related financial policy issues.Thirdly,through the three-dimensional analysis of the financial status of ZhangQu,it discovered that there were problems in its financial policies,and then used the decomposition model of the value model to combine the agency cost theory with four aspects: value creation ability,profitability,ability to create cash,and growth ability.The theory of financing order,the theory of sustainable growth,the theory of financial strategy matrix and the theory of dividend signals are used to analyze the specific causes of ZhangQu related financial policy issues.It is found that the financial policies implemented by ZhangQu are out of its ability status;the managerial layer has excessive investment problems in the investment policy in order to maintain the growth of the company's operating performance;while the low-leverage financial policiesimpair the company's growth ability and profitability,It also led to the lack of creditor protection clauses in the investment behavior of managers.Finally,according to the problems and causes of the financial policy of ZhangQu,the financial strategy matrix theory,the capital structure theory and the dividend policy theory are used to amend the current financial policy of ZhangQu.This article uses technology as the object of the negative case study.Through the three-dimensional analysis of its financial status and the decomposition of the value model,it is found that the high-margin M&A investment with incidental performance promises the essence of spending money to buy profits,which easily leads to corporate financial crisis.Make the company face the risk of impairment of goodwill;Financial policies that are decoupled from the status quo of corporate capabilities can cause serious damage to corporate value;financial policies with low financial leverage can also bring business distress and financial risks to companies.According to the research conclusions,relevant recommendations are made on the formulation of the company's financial policies,and it is pointed out that as a listed company,it should have a core competitive business and cannot rely solely on M&A investment to achieve scale expansion.