Based on the Modigliani-Miller Theory and the Net Present Value

Method Analyse the Impact of Corporate Finance on Corporate

Performance

Zhiyuan Xie

School of Statistic, Chengdu University of Information Technology, Chengdu, Sichuan, 610103, China

Keywords: Corporate Finance, Modigliani-Miller Theory, Net Present Value, Corporate Performance.

Abstract: In current business environment, the internal efficiency has been a significant factor for the performance of

corporate. There is heterogeneity in corporate finance strategies and outcomes. In this paper we look at the

complex relationship between how the finance of the corporation affects the performance of the corporation.

The primary question that is examined is the extent to which financial decisions, such as capital structure

and investment decisions, affect the profitability, growth, and survival prospects of firms in various

industries and market environments. To counteract this problem, the research adopts a twotwey approach

through both Modigliani-Miller (MM) theory and the Net Present Value (NPV) criterion as its theoretical

basis. The research results show that corporate finance has a significant influence on company performance

which varies from the effect on the industry level. However, limitations exist. The MM theories’ assumption

of market perfection is hardly an actual case and the NPV faces practical problems like cash flows’

forecasts and the rate of return to be discounted.

1 INTRODUCTION

1.1 Background

The optimal mix of debt and equity financing is

influenced by the specific financial characteristics

of/market for the borrower's industry. Although

individual firms in the same industry may emulate

various financing strategies depending on their size,

stage of growth and risk-appetite, some industry–

wide financial characters can lead to the hierarchies

of financing choices in industries. In some sectors,

such as manufacturing and energy, where there are

relatively large upfront capital requirements in

buildings and equipment, higher leverage levels

may be justified to utilize tax shields and defer

repayments. In contrast, the labor-intensive, low-

fixed-costs retail and services sectors, where

flexibility in the scale of operation is relatively high,

may favor equity financing over debt, which comes

with fixed schedules of repayment. High-tech

industries, featuring high R&D costs and rapid

turnover times between innovations, are more likely

to be financed by venture capital or equity rather

than other forms of capital to encourage and fund

growth without the immediate obligation of debt

repayment. Likewise for healthcare companies, a

combination of capital and technology intensity sees

them needing to traverse a complex funding terrain

that is tied to infrastructure debt, as much as it is tied

to equity for R&D and to navigate the maze of

regulatory approvals. The importance of grasping

these industry-reserved financial dynamics is

critical particularly given that businesses are (or

should be) strategizing against a backdrop of

operational requirements and, of course, long-term

financial stability.

In the past few years, along with the global

economic reform and upgrade, the financial

strategies of enterprises in different industries have

also been changed repeatedly. The manufacturing

sector is advancing towards intelligent

manufacturing and green manufacturing, saying that

more capital will be directed into technological

research and equipment renewal. The energy sector

is shifting rapidly towards renewables, which creates

new challenges but also exciting opportunities for

corporate finance. The service industry is booming

and enterprises are busy with brand building, market

expansion and talent recruitment. In summary,

306

Xie, Z.

Based on the Modigliani-Miller Theory and the Net Present Value Method Analyse the Impact of Corporate Finance on Corporate Performance.

DOI: 10.5220/0014352100004718

Paper published under CC license (CC BY-NC-ND 4.0)

In Proceedings of the 2nd International Conference on Engineering Management, Information Technology and Intelligence (EMITI 2025), pages 306-313

ISBN: 978-989-758-792-4

businesses across different industries continue to

adjust their financial plans with current market

conditions to remain competitive and continue to

grow.

1.2 Main Questions, Methods, Content

This study sets out to investigate the complex issue

of how corporate finance affects corporate

performance. Its central research question revolves

around understanding the ways in which financial

decisions, such as determining capital structure and

making investment choices, influence the

profitability, growth, and overall well-being of

businesses operating in various industries and

market environments.

A dual-theory framework (the Modigliani-Miller

(MM) theory and the Net Present Value (NPV) rule)

is used to deal with this problem. The MM theory

provides a link between firm value and capital

structure and argues that in the absence of taxes and

bankruptcy costs, value of the firm is erratically

associated with capital structure. That said, the study

acknowledges that real-world constraints such as

taxes, transaction costs, and information asymmetry

may also influence that relationship. The NPV rule

offers a means by which one can judge investment

projects by discounting, which is a way of finding

the current value of future cash flows, thereby

comparing it with the cost of the investment at t 0.

Although the NPV approach faces a number of

implementation obstacles, including the accurate

estimation of cash flows and the appropriate choice

of discount rate, it continues to be one of the primary

capital budgeting tools because of its ability to make

explicit the relationship between the investment

decisions a company makes and its impact on the

wealth of shareholders.

The research papers are based on the study of

various sectors. In capitalintensive sectors

(manufacturing and energy), financial planning

affects performance mostly through the direction of

capital-intensive investment budgeting and capital

mix. Compared to them, labour-intense industries,

such as retail and services, are driven much more by

working capital management and operational

financing. The research also delves into other

leading industries, from energy and health care to

tech, and how they too have financial peculiarities

and challenges. The research also contrasts

developing and developed markets. Mature markets

are characterized by liquid financial markets,

mature legal systems, and sophisticated investors

with predominance of equity finance. Emerging

markets, however, are different financial animals.

Case studies of China and Vietnam’s energy

industries demonstrate how firm-level financing

strategy in emerging countries is influenced by

institutional structures. The results of this study

support the hypotheses suggesting the importance of

corporate finance in business performance, and

heterogeneity effects in each industry. Yet,

limitations exist. Because there are many cases in

which the perfect market assumed by MM theory

does not exist, the NPV method also has drawbacks

in that it requires accurate predictions of cash flows

and the selection of an appropriate discount rate.

2 THEORY

Corporate finance affects the financial world of

sectors differently. In capital intensive industries

such as those of manufacturing and energy, financial

decisions impact performance mainly in the form of

large magnitude investment decisions and capital

structure management. For example, high leverage

can magnify returns in rising markets and raise risks

in falling ones. It is more visible in working capital

management and operation financing for labour

intensive sectors like retail and services. Good

retailers often want to keep low debt to equity ratios

to have flexibility. In the IT industry, sustained

R&D investment is necessary for competition and

firms favour equity financing for technology

innovation. Health is a sector which combines both

capital and technology intensive, where a substantial

amount of resources are devoted to research,

equipment and staff. The economic aspects of

health companies are affected by technological

advances and government intervention. The findings

suggest that, in general, firms of different industries

could develop industry-specific financial strategy

development to improve financial performance.

2.1 Theoretical Basis

Class details: This course examines the influence of

corporate finance on corporate performance,

studying how financial actions affect the

profitability, expansion and stability of a firm.

Towards this aim, we rest on two fundamental

approaches the Modigliani-Miller (MM) theory and

the Net Present Value (NPV) criterion. The MM

hypothesis explains the relations between capital

structure and firm value, while NPV provides a way

of investigating investment decisions. Both theories

have a clear connection could the setting of our

Based on the Modigliani-Miller Theory and the Net Present Value Method Analyse the Impact of Corporate Finance on Corporate

Performance

307

research, as they provide theoretical perspective to

understand how financial strategies impact firm

performance. We can learn from these theories the

effects of capital structure and investment decisions

on the financial fortunes of a firm.

Under the irrevocable perfect market conditions

of the Modigliani-Miller theory, the value of a firm

is independent of its capital structure. This

fundamental belief indicates that irrespective of how

a company is financed, its total market value will

remain unchanged. However, in practice, the

assumptions of perfect marketing. no taxes, no

transaction costs, and perfect Information are seldom

satisfied. For example, the leverage benefit of debt

isone of the ways that it can increase firm value

because interest payments are tax deductible. It is

this tax advantage that renders debt financing

attractive for firms and influences their behavior to

work better. Further, the theory emphasizes that

excessive debt may result in financial distress and

bankruptcy costs that can reduce firm value. By

knowing these variables, firms can make rational

decisions about the mix of debt financing and the

risk of financial distress in order to maximize their

value. The MM model is the base for corporate

capital structure determinations. When a company

has decided on its capital structure, it must then use

the NPV criterion to make a scientific assessment

about whether particular investment projects are

worthwhile or not. A detailed treatment of the NPV

criterion is given in the next section.

This is because the NPV approach is a key

financial device through which investment’s

profitability is analyzed by discounting future cash

flows to present value by applying rite (discounted

rates) and deducts the initial outlay. A positive NPV

will mean value added, consistent with managers’

mission to maximize value. But the approach is

highly limited in practical use. Reliable estimations

of cash flows are difficult to make, especially with

long-life projects, where market-based and other

operational variables are subject to considerable

uncertainty. Choosing a discount rate is also

difficult, because it should accurately represent the

risk of the project the wrong rate can taint the NPV

and mean the decision is not optimal. Nevertheless,

NPV continues to dominate in the area of capital

budgeting because of its clear connection between

investment decisions and the creation of shareholder

value. There are additional techniques that can be

used to strengthen the current method: scenario

analysis offers multiple forecast outcomes,

sensitivity analysis indicates important value drivers,

and real options valuations considers managerial

flexibility. When used in combination with these

support tools and adapted to incorporate industry-

specific factors (higher discount rates for cyclical

sectors or phased project cash flow for R&D

intensive sectors), NPV is more than a static

calculation, it becomes a dynamic decision-making

frame that more easily reflect software project

realities yet still shares the theoretical integrity of

being a value based analysis instrument.

3 DIFFERENT INDUSTRIES

3.1 Capital - Intensive Industries:

Financial Decision - Making and

Corporate Performance Analysis

The impact of corporate finance on firms in all

industries cannot be overemphasized, yet in reality

industry type can moderate the effect of corporate

finance. It is also the case that in capital intensive

sectors, such as manufacturing and energy, financial

decisions mainly impact performance through

investment in large scale and allocation of capital

structure. In the meantime, in sectors that are more

labor intensive such as retail or services, the impact

is more clearly felt in the management of working

capital and operational finance. Accordingly, this

strategic use of corporate finance principles results

in new value propositions that emerge in different

business models. capital-intensive firms focus on

balance leverage relations, and labor-intensive firms

concentrate on the financial risk prevention and cash

holding.

First, this paragraph seeks to describe capital-

intensive companies. Capital allocation decisions

are critical in all capital-intensive sectors where

they drive long-term growth and risk profiles. In the

case of real estate, Daxuan Zhao emphasized that

growing property values enhance the capacity to

borrow (Daxuan Zhao, 2024). A company with $50

million of assets could borrow up to $35 million

and use its collateral to grow. According to MM

theory, this valuable collateral makes capital

structure optimal, with some debt creating value

through interest tax shields. A NPV of a $20 million

project that produces $2 million per year for 15

years at an 8% discount demonstrates financial

viability consistent with Gompers ’governance

influence (Gompers et al., 2003).

Corporate finance is critical for firm value in

any sector and market. The MM theorem develops

the theoretical framework of capital structure

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decisions, and the financial ratios and NPV analysis

are used as practical tools to analyze investment

decisions. The focus of this article is understanding

the effect of corporate finance on businesses in

capital- and labor-intensive sectors as well as other

industries such as energy, health and technology. It

also analyses disparities between developed and

developing markets, China and Vietnam's energy

industries being the cases studies. Combining

theoretical underpinnings with empirical evidence,

this study demonstrates superior financial policies

across different business environments.

The so-called capital-intensive industries are still

these, which have a high capital in relation to the

employed labor. There are industries that generally

have a high operating leverage, which is to say they

have a high percentage of their costs in the form of

fixed costs as opposed to variable procurement costs.

Highly leveraged firms lose more of their market

share and have lower operating profits in an industry

downturn than low-leveraged ones (Tim C. Opler

and Sheridan Titman, 1994). This trait makes them

highly responsive to changes in sales volume.

Leverage, up to a certain point, of course, raises risk

and the exposure to economic and market turmoil

(Mohammed Sawkat Hossain, 2021). Companies

may counteract these risks by using risk

management techniques like derivatives hedging.

For instance, interest rate swaps or foreign currency

futures can shield against unfavorable shifts in rates

or the value of the currency. These instruments

contribute to the stabilization of the company's

financial results (protection from potential losses

amid-everchanging periods of economic uncertainty

and the various fluctuations in the marketplace) and

provide for the stability of operations despite market

vagaries. Real Estate: Real estate business is capital

intensive where huge upfront investments are

required while acquiring and developing the

properties. Developers generally use extremely high

leverage ranges from 70-80% LTVs. Such a

financing structure amplifies returns in up markets,

but it also deepens losses in down markets. That

construction magnifies gains in rising markets, but it

makes losses worse in downturns. Lehman Brothers’

aggressive real estate bets and leverage played a

significant role in the huge losses and the

bankruptcy it suffered when the mortgage market

imploded in 2008, for example. In recent years,

Chinese developer Evergrande, also highly geared,

ran into financial trouble when the real estate market

took a turn for the worse and sales slowed. The

financial crisis of 2008 vividly showed how over-

leverage in real estate can create systemic risk.

Manufacturing companies must balance investing in

capital goods (factories, machines etc.) and meeting

working capital requirement. For instance, car

makers generally have debt-to-equity ratios in the

range of 1.0 to 1.5 to finance production lines, all the

time preserving financial flexibility" Among

manufacturers, capital structures differ by subsector.

Auto companies maintain debt to equity at 1.0-1.5

to finance production lines yet maintain flexibility.

The mechanical engineering institutes, with the

pressure of individual ised equipment, show higher

levels (1.2 1.8) for R&D and specific equipment.

This finances innovation but increases financial

risks. Car companies have been able to take

advantage of the scale, while mechanical companies

face weaker volumes. Those differences inform

their financial health — and how they plan to

expand. Manufacturing, as a capital-intensive

process, faces early barriers to entry, but high

economies of scale for the incumbents. Highly

Leveraged Considerations: Using leverage can

magnify returns on equity, but being overleveraged

can lead to trouble. By contrast, industries with

stable cash flows (such as utilities) may be able to

support higher leverage than cyclical industries (like

semiconductors). The optimal capital structure is a

function of: Business cycle uncertainty − ⇒asset

tangible-ness (to re-use as a collateral) − Growth

opportunities that benefit from financial flexibility.

3.2 Labor - Intensive Industries:

Financial Strategies and

Performance in Retailing

Labor-intensive industries create value mainly with

their human capital, not with their physical capital.

Such businesses generally incur lower fixed costs

but labor costs — wages and benefits — are

generally higher. Retailing. Corporate financial

strategies may create corporate profit and

operational efficiencies in retail industry (Sergio

Ribera Boigues, 2016). In retail, financial tactics

differ for online and offline channels. Offline

retailers such as Walmart has a D/E ratio of around

0.8, to help the rapid turnover of inventory and store

renovation. Online retailers such as Amazon have

relatively lower debt as they have lesser requirement

of physical infrastructure and invest more on

technology and maintain less inventory. That way,

if they can adjust to consumer fads and grab market

share. Thanks to cheaper overheads (that is, no need

to pay rent on a physical store), they can make

higher margins on these online sales. These two

companies take different approaches which benefit

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them differently: offline access to customers for the

offline retailers and convenience and variety for the

online retailers. Low-leverage industries have a

number of financial advantages they can deploy to

help grow businesses. And companies with little

debt have lower interest payments, which directly

boosts profit margins and lets them steer more cash

flow for investments or savings. This kind of

financial freedom provides investment in growth,

including undertaking new projects, leasing new

space, seeking new equipment or investing in

research and development, without the weight of

heavy debt service. In addition, when times are

tough, these firms can use their strong balance sheets

to pick up distressed assets on the cheap. Lower

leverage companies also can boost shareholder

value by buying stock or increasing dividends, thus

signaling confidence in their financial health that can

drive up stock prices. For instance, a company with

little debt can launch a share buyback, reducing the

number of outstanding shares and therefore

increasing earnings per share, which can

demonstrate that the stock is undervalued and

creates value for current owners. Yet overly

conservative capital structures may result in lost

growth opportunities or impaired tax efficiency.

Víctor M. González regarding this typed of

performance considered that “Companies with a

little leverage, tends to have less ability to pay debts

risks and has lower financial stability. Which are

the most important for money market affecting

factors” (González, Víctor M, 2013).

3.3 Others

Energy industry and the quirks of financing.

Exploration and production, i.e. “upstream”

whichtions, need significant investment and have

lengthy time horizons to recoup funds. Renewable

energy projects have high upfront costs and low

operating costs so have very specific cash flow

profiles. Conventional energy companies have D/E

ratios at about 1.2 even as renewables typically

surpass 1.5 on the back of project financing

requirements. Oil companies like ExxonMobil have

high debt-to-equity ratios of about 1.2, a reflection

of their capital-intensive business. But renewable

energy companies frequently have ratios above 1.5,

because they need project finance. The unique cash

flow characteristics of renewable projects (high up-

front capital costs and low operating expenses)

necessitate specialized financing structures.

Healthcare providers walk a fine line between

determining necessary capital investments in

buildings and equipment, while complying with

regulatory pricing constraints. A sound corporate

governance system may result in more effective

financial control, efficient operations and

profitability in the long run. Not-for-profit hospitals

usually have a D/E of below 0.5, whilst for-profit

systems can reach as high as 1.0. Moderate debt is

supported by the sector's recession-resistant

characteristics. Big Pharma companies like Pfizer

are already dealing with pricing pressures because of

tight regulations. To counter this, they are

concentrating on R&D on high-value drugs and

moving into developing countries in order to

increase margins. Alternatively, medical device

companies might pursue different financial

strategies based on their product life cycles and the

regulatory approval process.

Tech startups often use venture capital to

finance R&D. Companies such as ByteDance have

been funded several times to help them grow

overseas and develop new technologies. The

financing businesses not only improve their market

competitiveness but also help them increase their

enterprise value and market influence. Tech

companies are up against a paradox: Though R&D is

key for competitiveness, it’s not easy to finance with

debt because of its intangible nature. Winning

companies have R&D-debt ratios below 0.3, and

they choose elevation financing for innovation.

Apple's evolution from a basically debt free

company in 2012 to a current D/E of 1.4 shows how

mature tech firms can more effectively manage their

capital structure. It is found that the technology

finance can significantly enhance a firm's TFP by

mitigating financing obstacles and promoting

innovation (Yuting Zhong and Xin Jin, 2024).

A deep capital markets system with the variety

of options for financing (and a stable legal and

regulatory regime). Informed investors who seek for

transparency (Eva Su, 2025). Equity dominates as a

source of corporate finance, so that the D/E ratios of

public firms average about 1.0. Four—The U.S. and

European models For evidence of how to use the

base of equity established to: Acquire strategically.

Invest in R&D Return capital to shareholders in the

form of dividends and buybacks. Between developed

market institutional shareholders keeping close

account of financial numbers is increasing pressure

to have productive capital allocations. In the U.S.

market, firms such as Apple and Microsoft rely on

equity financing to finance their operations. The

average leverage for both groups is approximately

1.0, indicating that the companies have a sound

financial structure and strong equity financing

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ability. On the other hand, Japanese firms could

have different financing choice preferences because

of distinct corporate governance structures, lower

correlation theories, and unique financing markets,

typically exhibiting relatively low leverage ratios.

The existence of credit rating agencies moreover

help discipline debt management.

3.4 Corporate Finance in Different

Markets: China and Vietnam's

Energy Sector Comparison

Providers in developing countries exist within

unique financial ecosystems that may influence

evolving market structures and policy environments.

These companies including oil, gas, coal, nuclear,

hydro, wind and solar energy producers are

confronted with finance issues that are substantially

different from their developed market counterparts.

Comparison of China and Vietnam energy industry

indicates that institutional settings affect the

corporate finance behavior in emerging markets.

Kitchlu et al. (2022) provide background

information on Vietnam's energy sector

decarbonization, which offers important insights into

the unique financing challenges faced by energy

companies in the country. According to the report,

Vietnam's energy sector faces dual challenges of

financing structure and policy support during its

transition to renewable energy. This contrasts

sharply with China's state-led financing model. The

Chinese energy sector showcases a nationally-led

financing approach with some unique

characteristics. China National Grid has received

policy support and domestic financing advantages

as a state-owned company. It may lock in long term

infrastructure investments and expansions of

industry. Vietnam Electricity, on the other hand,

functions in a more competitive market. It lures

foreign and domestic money to help fund its energy

projects. This discrepancy in financing instruments

affects the financial behaviour and performance of

energy firms in both countries. Large state-owned

enterprises, with their privileged access to domestic

funding channels, dominate the sector. The prime

source of debt financing comes from policy banks at

subsidized lending rates, usually 3-4 percentage

points lower than market benchmarks. This cost

advantage has been instrumental in funding huge

investments in traditional and low-carbon-energy

projects.

The switch to renewable energy serves as an

example of how China’s financing model works.

The nation has emerged as a world leader in

investment in clean energy, pouring more than $500

billion during just the last three years into the

industry. This success relies on a synchromesh

support including policy financing, special bonds,

and government investment funds. Today, domestic

manufacturers produce the vast majority of

renewable energy technologies, with these integrated

supply chains driving down project costs.

Financial performance metrics reveal the

strengths and limitations of this approach. State-

owned energy companies maintain relatively stable

returns on equity around 6-7 percent, though this

trails private sector performance. Debt burdens

remain elevated but manageable due to ongoing

policy support and captive domestic investors.

Capital expenditure ratios consistently exceed 20

percent of revenues, reflecting the sector's growth

orientation.

Vietnam presents a contrasting case of energy

financing driven by market forces and private

participation. Nearly half of the country's power

generation now comes from private producers, with

foreign investors playing particularly important roles

in renewable energy development. This market

structure has produced dynamic growth but also

introduces new financial vulnerabilities.

The nation’s solar power boom shows the

promise and pitfalls of this strategy. Installed

capacity skyrocketed from almost nothing to more

than 16 gigawatts in just three years, driven by

lucrative feed-in-tariffs and an easing of planning

restrictions. But such a rapid expansion placed

pressure on the grid, and this resulted in contract

renegotiation that dented investor confidence. The

foreign currency issue is another structural problem,

with more than half of the sector’s financing in

dollars.

Financial outcomes reflect Vietnam's risk-return

profile. Private energy companies achieve higher

returns on equity, often exceeding 15 percent, but

face greater volatility. Debt servicing costs consume

a larger share of cash flows due to higher interest

rates and currency risks. Project economics remain

attractive to international investors, with targeted

equity returns typically 4-6 percentage points above

Chinese benchmarks.

The funding mechanisms of China and Vietnam

offer opposing strengths and weaknesses. China’s

model brings scale and stability, but it can suffer

from capital misallocation and inefficiency.

Vietnam’s market-oriented approach appeals to a

wide range of funding sources, but it grapples with

coordination difficulties and financial fluctuations.

Both nations face the same daunting task in the age

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of transition: how to pay for their divergence from

current energy infrastructure and still have an

affordable and reliable system. Looking forward,

China is slowly reforming its state-dominated model

through dynamics such as mixed-ownership reforms

and green finance initiatives. Vietnam Vietnam

continues to develop its market framework by

promoting local currency solutions and risk

mitigating instruments. Regional cooperation could

play a role in addressing common challenges, in

particular in cross-border power trade and climate

finance.

These case studies highlight how developing

countries are forging their own unique paths to

finance their energy futures. The best model is

probably a combination of the two, using state

capacity to facilitate transitions while preserving

market discipline to allocate resources effectively.

Financial innovations observed in developing

countries, where energy systems are undergoing

radical changes, could present some lessons to

global energy finance.

Finally, in both developed and developing

countries, corporate finance is critical to how well

energy firms work. Differences in financial

strategies and outcomes emphasize the importance

of considering industry and market-specific

influences. Increasingly being forced to focus on

global energy transition by energy companies, in the

developed. POSTS:8 as well as in the developing.

Both countries have felt the influence of corporate

finance in their energy sectors, but that’s where the

similarities end. In China, the government's energy

companies are subject to greater government

policies and regulatory systems, resulting in more-

costly short-term financing, but with a potential

future-oriented twist. Vietnam’s energy companies,

in contrast, are more shaped by market forces and

the availability of private capital. The World Bank

report indicates that new financial resources

including private investment were likely to be

central to Vietnam’s energy growth10.

4 CONCULSION

This study investigates the extent to which corporate

performance is driven by corporate financial

decisions considering the role played by profits and

growth across various industries and market

conditions. Based on the MM theory and NPV

criterion, it provides a theoretical framework to

facilitate understanding the interaction between

financial strategies and corporate performance. The

implications are that corporate finance has a

significant impact on performance at the business

level and that effects differ by industry. Investment

size and optimization of capital structure impact

capital-intensive industries whereas for labor-

intensive industries the condition of working capital

management and operational financing apply, and

for energy, healthcare, and technology sectors,

divergent financial characteristics and challenges are

present. The study has some limitations, however.

The perfect market assumption by the MM theory is

hardly found in practice, so does the NPV method,

in which it is very difficult to estimate cash flows

properly and to choose a good discount rate.

Moreover, the paper may not capture all potential

factors and intricacies in various industries and

markets. In the future, with the development and

upgrading of the world economy, the corporate

financial market will also develop and transform.

Enterprises must also update their financial

strategies more frequently to cope with market

changes and to maintain a lifecycle development.

Enterprises from various industries will probably

increasingly develop diversified and sophisticated

financial operation mode, and give full play to the

role in innovation and risk management. Besides,

corporate finance decision-making is supposed to be

more scientific and efficient as financial technology

develops, and information becomes more accessible.

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