A Study On Financing Strategy Of Huayi Brothers Media Group

The development of the cultural media industry affects the development of China's national economy to a certain extent.Because it has both political attributes and product attributes,China has strict control over the cultural media industry and has introduced a series of policies to guide the development of cultural media industry.With the formulation of the “Cultural Power” strategy,the cultural media industry is booming,showing great potential and also generating huge profits.However,due to the special nature of the cultural media industry,the financing difficulties have been plaguing the development of cultural media companies,and have had a huge negative impact on the development of China's cultural media industry and the enhancement of market competitiveness.Huayi Brothers Media Co.,Ltd.(hereinafter referred to as “Huayi Brothers”)is the first privately-owned cultural media company in China.It sets different strategic goals according to the different stages of development,and adjusts the financing strategy based on this.This article first introduces the research background and significance of the full text in the introduction part.In the theoretical analysis part,it introduces the relationship between the “New Pecking Financing Theory” and the choice of financing methods,and the relationship between the enterprise life cycle theory and the selection of financing strategies.The theoretical analysis of the characteristics of cultural media companies laid the theoretical foundation for the full text.Afterwards,through comparative analysis and case analysis,the Huayi Brothers' financing strategy was analyzed in detail.The success of the Huayi Brothers' financing strategy was that the financing strategy was consistent with the company's strategic objectives and the financing strategy was formulated taking into account financing risks.The adjustment of financing needs in accordance with the life cycle of the enterprise,and accurate grasp of national policies help boost business growth.The deficiency of Huayi Brothers' financing strategy is reflected in the following two aspects: First,over-reliance on short-term borrowing;Second,financing costs need to be controlled.In view of the above issues,this paper believes that Huayi Brothers should adjust the debt financing structure,scientifically plan project costs,make prudent financing decisions,solve existing problems,and improve financing strategies.In addition,the paper concludes through analysis that five factors affect the development of the capital market: changes in the degree of policy binding,changes in the life cycle of the company,adjustment of strategic objectives,and changes in the ability to repay debt,and Huayi Brothers' financing strategy adjustments.The basic contribution of the article lies in the selection of Huayi Brothers,a benchmarking company in the culture and media industry.Based on the company's life cycle theory and corporate finance theory,it combines the strategic objectives of the company's different life cycles with the adjustment of financing strategies.Huayi Brothers financing situation and financing strategy,explore the successes and deficiencies of its financing strategy,and propose corresponding solutions to provide reference for other private cultural media companies to formulate financing strategies,and also for private cultural media companies on financing issues.Conducting research provides new ideas and perspectives and has certain academic value.