Research on Financial Strategy for Firms on the Growth Stage Based on EVA
With problems getting prominent that the domestic enterprises can not raise funds efficiently, make investment decision scientifically and allocate financial resource rationally, this paper exams the relation between financial strategy and firm value on its growth stage. The sample of this paper is drawn from firms listed on the stock exchange in Shanghai and Shenzhen; we choose 76 of top 100 firms for its growth ability on their growth stage in 2007 and compute their financial indicators from 2005 to 2007 representing financing strategy, investing strategy and dividend strategy. The empirical results show that firms with different financial strategies are different from their firm value on the growth stage: (1) the debt to asset ratio representing the financing strategy on firm growth stage is negatively related with firm value; however, the long-term debt to total debt ratio which also represents financing strategy has positive relation with the firm value; the dividend payout ratio changes negatively with the firm value. (2) The investing strategy is not related with the firm value. (3) A conservative financing and distribution strategy have a bigger positive impact on the firm value for firms on the growth stage.
EVA Firms on the growth stage Financial strategy Firm value
Xiao xia XIE Jin LI
Doctor of Management,Lecturer,Accounting Department,School of Economics and Management,BeiHang Unive Graduate Student,Accounting Department,School of Economics and Management,BeiHang University,Beijing
国际会议
The 2nd International Conference on Vale Engineering and Vale Management(2009)(2009年北京价值工程与价值管理国际会议)
北京
英文
460-468
2009-10-16（万方平台首次上网日期，不代表论文的发表时间）