The Coordination Model of Financial Strategy and Organizational Life Cycle with Financial Performance

Journal of Accounting Advances (J.A.A)
Vol. 7, No. 2, 2015, Ser. 69/3
 
 
Extended Abstract
 
The Coordination Model of Financial Strategy and Organizational Life Cycle with Financial Performance
 
Dr. Rahim Abedi*                             Hamed Zynalzadeh**
 
Introduction
       According to many theories of organizational coordination and combination, the organizational effectiveness is high in the organizations with high coordination among contextual, structural and strategic factors. This article provides a comprehensive model to fit between the financial strategy and lifecycle with organizational performance. The comprehensive model is based on the process outlook to the strategic financial management and organizational life cycle in which the strategic implementation is a function of formulation (focus of internal/external) and control (low/high).
 
Research Questions or Hypothesis
       Coordination between financial strategy and life cycle leads to improvement of the financial performance.
 
Methods
       The research method based on results is developmental; based on objective it is descriptive-explanatory, and based on the method it is ex-post facto research. The statistical population was the companies admitted to the Tehran Stock Market whose stocks were transacted during the year 2009. One hundred and forty three companies were selected. The tool used for collection of the information and data was analysis of the companies’ audited financial statements and decisions of the annual ordinary general assembly meetings of shareholders at Tehran Stock Exchange. Descriptive statistical, and parametric and Non-Parametric methods were employed for summarization and analysis of the data, respectively.
 
Results and Conclusion
       Results show that, the mean performance (ROA, ROE, Q Tobin and profit margin) of the companies with coordinated financial strategy and organizational life cycle was higher than the companies lacking it. In other words, the coordination between financial strategy and life cycle leads to improve the organizational performance. 

*  Assistant Professor of Business Administration, Urmia University
    Corresponding author:  R.Abedi@Urmia.ac.ir


**  Master of Finance, Aras University of Tabriz