Research On The Financial Strategy Of TY Company From The Perspective Of Shareholder Value

In 2017,the Ministry of industry and information,the national development and Reform Commission,the Ministry of science and technology and other three ministries jointly issued the medium and long term development plan for the automobile industry,which paid great attention to the automobile parts industry.According to the current situation that the main suppliers of automobile parts in China are enterprises other than the automobile industry,the development plan clearly proposed that: promote the coordinated and efficient development of the whole industry chain,and build a new type of "vehicle parts department" partnership.The promulgation of the development plan is also a development opportunity for TY company.As a key link in the whole industrial chain,TY company's production technology has a competitive advantage and lacks financial support.Therefore,TY company needs to introduce strategic investors,take the opportunity of financial strategy improvement,strengthen the effect of financing,investment and operation capital management,improve the company's profit level,provide guarantee for shareholders' value creation,and achieve the goal of attracting investors' investment.This paper takes TY company as the research object,under the guidance of shareholder value theory and financial strategy matrix theory,according to the product business scope and production technology capacity of TY company,starting from the basic situation of productionand operation of TY company,combining with the development trend of products,market demand change and high-quality development theory,discusses the financial strategy environment of TY company.Using the DuPont financial analysis system and the financial statement data of TY company from 2013 to 2017,this paper analyzes the profitability,operation ability and debt paying ability of TY company in recent five years,and provides the direction for the analysis of the financial strategic problems of TY company.Under the guidance of the theory of shareholder value(SVA),this paper calculates the shareholder value of TY company.The results show that most of the shareholder value added(SVA)of TY company comes from the decrease of the increase in investment,but in fact,it does not realize the increase in shareholder value.In order to analyze the reasons for the decrease of shareholders' value,the paper evaluates the financial strategy matrix of TY company with the help of the financial strategy matrix theory.The results further show that the financial strategy matrix of TY company in 2013 is in the second quadrant,which belongs to the value added cash surplus;in2014-2015,it belongs to the third quadrant,which belongs to the value impairment cash surplus;in 2016 and 2017,it is in the fourth quadrant Limit,belongs to the cash shortage of value impairment.According to the calculation results of shareholder value and the evaluation results of financial strategy matrix,this paper comprehensively analyzes the problems and causes of financing strategy,investment strategy,operation strategy and income distribution strategy of TY company.Combined with the actual financial situation of the company,the paper puts forward the improvement strategy of financial strategy.(1)Financing strategy improvement strategy: optimize capital structure and reduce capital cost.(2)Investment strategy improvement strategy: to builda superior brand,focus on foreign investment,activate the stock of fixed assets and promote the integration of research and production.(3)Working capital strategy improvement strategy: improve working capital financing structure,adjust the proportion of current assets,reduce manufacturing costs and improve the turnover speed of current assets.(4)Improvement strategy of income distribution strategy: implement low normal dividend plus additional dividend policy.