Dynamic Optimization Of The Theory Of Corporate Finance Strategy

As the crucial part of enterprise management, financial management consulting and absorbing the core of enterprise strategic management in the way of adopting and utilizing environment is forming a systematic financial strategy gradually. Nowadays, people are becoming to pay much more attention to the system of financial strategy. This paper aims to describe a picture of financial strategy research from side. The purpose of this paper is to study how to optimize financial strategy dynamically both in theoretic and practical way. The integration of theoretic methodology and case study is applied in this paper. The case study is to analyze a listed company in china stock market-Hai Hong proprietary (Sense stock market, code:000503). Based on the research on financial strategy optimization, the objective of this paper is to structure a system of dynamic financial strategy optimization employing free cash flow as decision variables. The objective, significance and methodology of this research paper are discussed in chapter 1.In chapter 2, the theory of dynamic optimization is described including the goal, conception, fundamentals and methods. Due to the essentiality of environment analysis, chapter 3 discusses the environment of financial strategy and makes interrelated optimization analysis. This paper specifies the dynamic optimization on enterprise investment strategy, financing strategy and dividend policy with focusing on free cash flow from chapter 4 to chapter 6.During the discussion of strategic optimization , this paper always emphasizes the significance of the dynamically environmental analysis. According to financial environment of the enterprise, consequently, the process of reaching the optimal asset and capital structure includes both short-term adjustment and long-term one; To dividend policy, the paper focuses on the analysis of dynamic optimization of cash dividend strategy. Enterprise financial strategy is composed of investment strategy, financing strategy and dividend policy strategy. The study on the dynamic optimization is ultimately concluded by the objective of enterprise: to maximize the value of firm and to keep the sustainable competitive advantage of the firm. Finally, this paper discusses the enterprise financial goal: to achieve sustainable growth, that represents the dynamic integration of financial strategy and the aim of the sustainable growth is described here as well. This paper is centered by free cash flow to show the inevitability of utilizing free cash flow for the analysis of dynamic optimization. Meanwhile, the paper tries to structure a dynamically financial strategic analysis system employing free cash flows as decision variables. Presently, although people have not attached enough importance to the relevant researches, we still believe: in the new century, with the complication and globalization of the corporate finance, the exploration and research on corporate finance strategy should appear far-reaching historic meaning.