Mechanism analysis of financial market volatility's influence on enterprise's financial decision-making
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DOI: 10.25236/etmhs.2025.018
Author(s)
Yongshi Zeng, Yuanyang Qiu, Jianing Xu
Corresponding Author
Yongshi Zeng
Abstract
Under the background of financial market volatility, corporate financial decision-making faces many challenges and opportunities. Financial market volatility has a far-reaching impact on enterprise financial decision-making by affecting key links such as fund raising, investment decision-making, asset management and risk management. In terms of financing, volatility increases the difficulty and cost of issuing stocks and bonds; In investment decision-making, volatility increases investment risk and uncertainty, prompting enterprises to adjust investment strategies; In asset management, volatility intensifies the uncertainty of asset value and increases the risk of impairment; In terms of risk management, volatility requires enterprises to identify risks and adopt diversified investment and hedging strategies to deal with them. This paper also puts forward financial strategies for enterprises to cope with the volatility of financial markets, including capital structure adjustment, investment strategy selection, risk management, financial planning and budget adjustment, etc., to help enterprises reduce risks, seize opportunities and achieve sustainable development.
Keywords
financial decision-making; financial market volatility; influence mechanism