The Financial Strategy Decision And Implementation Of Maritime Enterprises

Shipping is an industry of high risk with low return. Owing to the industry characters and the long period protection of the planned economic, domestic shipping industry will be affected by the entry to WTO heavily. The gap to the international superior shipping companies is tremendously deep which lies in the following aspects: the small capital scale, the weak capability of withstanding risk because of the narrow business scope, and the unreasonable structure and high cost in raising capital deriving from the imperfect capital market, etc. After the entry to WTO, the situation of our domestic shipping industry is very difficult. Under this circumstance, it's very necessary to manage the businesses and draw up the operating strategy, especially financial strategy beforehand according to the international standard.Conclusions could be drawn out through a positive analysis of the list shipping companies:The factors that have a positive effect on the strategic target are the rate of main business return, the velocity of the assets, while the capital structure and the rate of the increase of investment have little effect. Which illuminate that the shipping company should focus on the main business to enhance the return of net assets, it also shows that the business of the list shipping companies is over concentrated, and should be diversified to lessen the operating risk; the companies should accelerate the turnover speed of the assets; the appropriate structure of the assets can bring benefit to a company, but the ultimate approach to enhance the return of the net assets is to look for items with high return; thesightless investment made the increasing speed of return lag behind the expanding speed of the capital, and result in no scale economic benefit.The entrance of WTO brings opportunities as well as challenges. The shipping companies should apply the theory and methodology of strategic financial management into the financial activities. The decision-maker should grasp the emphases, and make a definite object in making strategy.Yang HaiCong (Transportation Finance) Directed by: Professor Shao RuiQing...