Alexander Bukhvalov, Professor, Graduate School of Management, St. Petersburg University
Strategic finance is the area of financial and strategic management, which refers to study of corporate performance with a long term view considering the strategic goals of the enterprise. The logic of the area says that financial performance should be analyzed both by means of use of financial instruments and by means of strategic decisions in the product market.
In this area the issue of decision making under uncertainty is central. Uncertainty is caused both by financial fluctuations and company’s competitive position. So financial performance is under improvement by means of strategic instruments, and strategic decisions are considered through the lens of financial valuation.
The area includes:
- financial hedging techniques
- real options analysis
- risk management
- long term valuation and private equity
- internal control (as an area of corporate governance).
Keywords presenting the track: uncertainty, hedging, real options, risk management, valuation.