Safeguarding Enterprise Prosperity: An In-depth Analysis of Financial Management Strategies

Rong Wang ()
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Rong Wang: Shanxi Vocational University of Engineering Science and Technology

Journal of the Knowledge Economy, 2024, vol. 15, issue 4, No 80, 17676-17704

Abstract: Abstract This research paper delves into the profound impact of public health emergencies on corporate finance, with a specific lens on the COVID-19 pandemic’s transformative effects. Corporate finance systems face unprecedented challenges in such crises, including fluctuations in consumer demand, escalating operational costs, profitability erosion, and cash flow constraints. These factors demand innovative financial strategies to ensure business resilience. The paper emphasizes the need for tailored financial systems, designed to navigate the unique challenges of health emergencies. Such systems should enable companies to mitigate financial distress and maintain operational continuity with minimal expenditure. The analysis highlights the critical role of knowledge transfer and collaboration across organizations and industries, fostering a shared understanding and best practices in crisis management. Our findings extend the existing literature by revealing the multifaceted financial challenges businesses face during health crises. This includes increased corporate social responsibility, heightened regulatory constraints, labor shortages, supply chain disruptions, and financing difficulties. These insights offer a nuanced perspective on crisis management, aiding businesses and policymakers in devising effective strategies for financial stability and resilience. The study concludes with theoretical and managerial implications, highlighting the importance of proactive financial management and robust financial buffers. It suggests that enterprises optimize their working capital and make swift, informed decisions to enhance their resilience and adaptability during crises. Additionally, it underscores the need for flexible and supportive measures from governments and regulatory bodies to aid businesses in navigating these unique challenges.

Keywords: Corporate finance; Public health emergencies; Financial resilience; Crisis management; Supply chain disruption (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s13132-024-01752-z

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