Open Access Open Access  Restricted Access Subscription or Fee Access

Financial Strategic Consistence and Firm Performance: The Quantitative Analysis of the Strategy

Chen Shou, Mao Chao, Liu Duan

Abstract


This study focuses on the dynamic management of financial strategy. We have constructed a financial strategy resources vector based on the Resource-based View, and measured the level of financial strategy consistency by using the distance and the angle. Pearson correlation models and linear panel data regression models are deployed to estimate the causal relationships between ROA and the financial strategic resources. Both of the results support that all the elements of resources vector have significant impacts on ROA. By extending the measurement of strategic consistency, we test the short-term and long-term impacts of financial strategic consistence on ROA. Our results show that the financial strategic consistence is in negative correlation with ROA and the firm could improve their ROA by changing their financial strategies both in short-term and long-term management.

Keywords


strategic consistence, strategy resources, financial strategy, quantitative analysis.

Full Text:

PDF


Disclaimer/Regarding indexing issue:

We have provided the online access of all issues and papers to the indexing agencies (as given on journal web site). It’s depend on indexing agencies when, how and what manner they can index or not. Hence, we like to inform that on the basis of earlier indexing, we can’t predict the today or future indexing policy of third party (i.e. indexing agencies) as they have right to discontinue any journal at any time without prior information to the journal. So, please neither sends any question nor expects any answer from us on the behalf of third party i.e. indexing agencies.Hence, we will not issue any certificate or letter for indexing issue. Our role is just to provide the online access to them. So we do properly this and one can visit indexing agencies website to get the authentic information. Also: DOI is paid service which provided by a third party. We never mentioned that we go for this for our any journal. However, journal have no objection if author go directly for this paid DOI service.