Research On Financial Strategy Management Based On Value Creation

In global competition intense today,strategic management has become flourishing as a management flat environment roof.So it's an inevitable trend to view the financial management from the strategic management aspect and formulate the theory of financial strategy.Sustainable value creation is the most important element for enterprise value maximization.In order to achieve the goal,the enterprise should aim at value creation and implement the financial strategy management.Based on above considerations,the achievement of the value maximization lies in comprehensively applying the corresponding theories of value,strategic management,financial management,budget management and performance management to open up the view of the financial strategic management,which forms the main purpose of this dissertation.The mentality of this paper is take the financial strategic management theory as a foundation.On the analysis of firm value and its divers,the model of financial strategy based on firm value is constructed.Firstly,the paper analyzes mutuality theories on financial strategic management, and redefines it by criterion.It takes MVA for the measurement of firm value,EVA for the value creation and reinforces it.From qualitative analysis,it concludes that the combine of EVA and traditional measurement can explain the value creation of corporations.Secondly,this paper researches the relevance of firm value and EVA,and firm value and traditional indexes by demonstration.It points out the key divers of firm value, and we can consider that,it is more obvious when EVA joins in traditional appraise system.After that,this paper does some studies on financial strategic establishment and actualization because of their importance.On the establishment,it takes EVA and traditional indexes as the quantitative variables,and chooses the model of financial strategic establishment based on firm value.On the actualization,the paper proposes the framework of financial strategy implementation based on firm value from the viewpoint of Management Economics.It is constructed through the max of firm value as its aim, the key value drivers net as the bridge,choosing budgeting,evaluation,compensation as key content,and leader-support,strategic communication,firm culture and Corporate Governance as underpinnings.Finally,the paper points out the challenges and opportunities we may meet if the model is used in china.We believe that,with the complication and globalization,the exploration and research on financial strategy should appear a far-reaching historic meaning.