Research On Financial Strategy Of Group Enterprises Based On EVA

In 1980s', as the establishment and improvement and development of china's socialist economic system, group enterprises sprang up and were developing rapidly and vigorously. Even large quantities of fully reinforced group enterprises were on the upgrade. Because the scale of enterprises were increasingly expanding and the structure of organizations were complicated, group enterprises found that the development, utilization and planning of the financial resources hindered their further development. While the study of the management of financial strategy pointed out a new orientation for the solution of the problem. But traditional financial strategy has a difficulty that its integrants separated from each other and couldn't be an organism. While EVA can combine group enterprises with branch enterprises and supply unified statement for establishing and enforcing financial strategy. At the same time, it can combine integrants of financial strategy organically. Therefore, group enterprises and branch enterprises will lay more stress on long-term interests and whole benefits and then achieve maximum value.On the basis of the system of financial strategy and the system of EVA and according to features of group enterprises, this article will analyse present financial strategy of group enterprises. Then it will point out that it's necessary to enforce the financial strategy management of group enterprises. After positive analysis of 40 group enterprises, this article studied the availability of applying group enterprises'financial strategy and got that EVA is related to traditional financial target, which is provided with authority to market value of group enterprises.Due to the analysis and evaluation of traditional financial management and strategy, this article structured the financial strategy frame of group enterprises based on EVA and laid stress on how to utilize EVA to establish financial leasing strategy, investment strategy and final cost strategy of group enterprises. Concurrently, it demonstrated the practicability of establishing group enterprises'financial strategy with examples. In the course of studying the financial strategy's enforcement of group enterprises based on EVA, this article put forward firstly that group enterprises should specify the financial strategy based on EVA by means of the comprehensive budget management. Secondly, limit finance properly during enforcing strategy. Then, use EVA comprehensive scorecard as the ways of achievement evaluation. Last but not the least, suitable incentive mechanism based on EVA is necessary. With those methods mentioned above, group enterprises'financial strategy based on EVA can enforce smoothly and then their strategy aims will come true.