Research On The Choice And Effect Of Enterprisefinancial Strategy Against Economic Cycle ——Case Analysis Based On Fuyao Glass

In 2013,China’s economy entered the “new normal”,and the economy began to change from high-speed growth to medium and high-quality development.The 2018 central economic work conference pointed out that there are changes and worries in the stable operation of the economy,the external environment is complex and severe,and the economy is facing downward pressure.China’s downtown pressure on the economy has increased since 2020,and the debt and income inequality has been increasing.The downward pressure on China’s economy has increased further.The complex and dynamic external environment has increased the financial risks of enterprises.In order to cope with the impact of external environment,the selection of financial strategy plays an important role.How enterprises can make sufficient financial reserves in advance to deal with the uncertain impact of the future economic downturn in the period of economic uptrend by formulating the counter cyclical financial strategy（hereinafter referred to as the “counter cyclical financial strategy”）;When the economic downturn comes,it has important theoretical value and practical significance for enterprises to achieve “opportunities” in the “crisis”,optimize resource allocation,improve enterprise competitiveness and realize high-quality development.In view of this,based on the economic cycle theory and financial strategy theory,taking Fuyao Glass Industry Group Co.,Ltd.（hereinafter referred to as “Fuyao Glass”）as a classic case,this paper brings the economic cycle,enterprise financial strategy and its implementation effect into the same analysis framework to explore how enterprises can effectively use counter cyclical financial strategy to deal with the adverse impact of economic cycle fluctuations,And how to use the counter cyclical financial strategy to seek “opportunity” in the “crisis” to realize the counter cyclical expansion of enterprises.This paper finds that:（1）at the turning point of the economic cycle from the rising period to the downward period,the choice of Fuyao Glass’ s financial strategy plays an important role.Enterprises seek “opportunities” for the “crisis” in the period of economic downturn by reducing expansionary investment,optimizing capital structure and increasing financial reserves;（2）In the economic downturn stage,the asset price was underestimated.When the enterprises in the same industry had not recovered from the blow,Fuyao Glass made use of the financial reserves in the early stage to realize the counter trend expansion by means of additional investment,strengthening innovation and implementing M ＆ A,which not only optimized the allocation of enterprise resources,but also improved the anti risk ability,profitability and competitiveness of the enterprise.The research contribution of this paper is mainly reflected in two aspects: first,from the perspective of counter economic cycle,this paper explores the choice of enterprise financial strategy and the impact of counter economic cycle financial strategy on enterprise performance,so as to further expand and enrich the relevant research of existing economic cycle and enterprise financial strategy;Second,in practice,this paper systematically summarizes and refines the successful experience of Fuyao Glass in implementing counter cyclical financial strategy under the background of economic cycle fluctuation,so as to provide experience reference and theoretical guidance for other enterprises on how to deal with the adverse impact of economic cycle fluctuation and how to choose financial strategy.