Research On Financial Strategy Of Electric Power Industry Based On Financial Strategy Matrix

As an important part of corporate strategy, financial strategy is closely related to the rise and fall of the enterprises, so the domestic and foreign scholars continue to study financial strategy theory. In2000, the American scholars Gabriel Hawawini and Claude Viallet first proposed a financial strategy matrix model which combined with economic value added and sustainable development theory. As the financial strategy matrix is a new kind of the financial strategy theory, scholars have gradually started to research on it and the application researches on it are few. Therefore, this paper chooses the electric power industry as the research object to study the financial strategy matrix for making theory work in practice. Hope it can play a role in the corporate financial strategy management and can be used as an effective tool to detect and develop financial strategy.This paper collects the financial data of40listed companies in electric power industry from the year2010to2013, using the financial strategy matrix to classify them. From the rationality of classification test of the value creation dimensions and cash dimensions, the results show that the financial strategy matrix is reasonable for classification of the enterprises. According to the average distribution of the quadrant in the40listed electric power enterprises from2010to2013, in the terms of cash dimensions,80.0%of the electric power enterprises belong to the type of shortage of funds, while the enterprises of surplus of funds account for only20.0%; in the terms of value creation dimensions, there are57.5%of the electric power enterprises in added value, while the remaining42.5%are in cutting value. After analyzing the trajectories of the40listed companies in the financial strategy matrix from2010to2013, this paper summarizes the rule of the financial strategy matrix to adjust the financial strategy. Enterprises should continue to create value and solve the problems of shortage or surplus of funds. Finally, through the case analysis of the specific electric power enterprise (Wenshan Electric Power), it can be confirmed that the measures of the financial strategy matrix are applicable in the practical management and that the financial strategy matrix can be used as an effective tool to detect and develop financial strategy.