On The Factors Of Business Strategy And Governance For China Listed Companies' Value-based Management

Value-based management is not only a practical process but also a theoretical system . it is promoted with the progress of mordern capital market and firm institution. As a road for modern company to get its competetive advantage, Value-based management includes two relative parts: stategy management and firm governance. The former is determined by the later in its functional performance, meanwhile, the arbitrage mechanism of stock market is also an important influencial factor. Value-based management is directly depended on firm strategy management, mfinancial structure. Generaly, strategical structure is made up of three parts: undertaking strategy, business strategy and functional strategy.In the past 10 years, China stock market made a great progress in its scale, but there is some defect in its value innovation. The great part of china listed companies are from state-owned enterprises, so there is much more institutional fault such as administrative governance and dual equity structure. Many China listed companies pay its attention to finance and despise Value-based management. The stackholders have partiality for market arbitrage through stock price fluctuation. They looked firm strategical structure as the theme for stock price fluctuation. If not change the business gornance梩he governance consists of firm inside governance and firm outside gorvernance, the author regards that the strategical performance of China listed campanies can' t be promoted.Firstly the thesis builds an analysis framwork on China listed companies' value-based management. Secondly the author uses the above analysis method to focus on undertaking strategy and functional strategy. In order to simplify the analysis logic, the paper mainly throws light on M&A strategy and financial strategy. The author thinks that M&A strategy and financial strategy are the most important strategy element. In all kinds of firm evaluation methods, the thesis finally selects EVA model as the instrument to evaluate the performance of the undertaking strategy and functional strategy.