The Research On Financing Problems And Countermeasures Of E Enterprise Group

The financing problem of business has always been one of hot, critical and tough issues in financial management research. Under the certain condition of market economy system, the competition among large enterprises has gradually become the major point of the competition between nations. Enterprise groups play an increasingly significant role in modern economic life. As the formation of world economic integration, expectations are high for enterprise groups in enhancing the international competitiveness of Chinese enterprises, developing and promoting the national industries and protecting national industrial security.In fact, as the main body of market competition, Chinese enterprise groups are facing many problems. Capital shortage is still one of the core issues in expansion of the groups and promotion of comprehensive competition. Therefore, studies on exploiting the advantages of corporate finance group, expanding financing channels, balancing financing structure, reducing financing costs and improving the efficiency of corporate finance group, have important practical senses for development of enterprise groups.This article studies state-owned enterprise Group E as the research object. And it is based on the significant role of groups in modern market economy as well as the capital shortage which is the main issue on restricting the development of groups. Firstly, this article introduces the background and significance of the subject, and generally describes the domestic and foreign related research status of enterprise group finance as well as the practical meanings of this thesis. Under this basis, the article then explains the connotation of the financing, financing channels and methods, financing structure theories, definition of enterprise groups and conglomerates advantages of financing, which lays the necessary theoretical foundation for this article. Secondly it introduces the basic situation of the Group E. Then it discusses and analyses group E’s current situation and causes in terms of financing management mode, financing channels, financing structure, financing costs and the overall financial performance. Finally, this article raises several countermeasures and suggestions to the current financing status and causes of Group E.The first chapter introduces the research background and significance of the enterprise groups’ financing issues. Then it describes the domestic and foreign related research status of enterprise Group finance, as well as ideas and methods of this article. At last, this paper describes the innovative points of this research and inadequacies.The second chapter states related theories of the corporate financing synthetically, such as the connotation of financing, the financing structure theory, financing channels and methods, the definition of enterprise groups, the mode of dividing financing permissions in enterprise groups and conglomerates advantages of financing, etc.The third chapter introduces the basic situation of group E firstly. Then it discusses the financing status respectively from financing management model, the main financing channels and methods, financing costs and structures and financing performance. At last, this chapter analyses the causes of the current status. It is mainly due to changes in the external financing environment, unreasonable choices of financing bodies, simple financing channels, inadequate capacity of endogenous financing, lack of awareness in management cost and risk and other reasons.The fourth chapter proposes some countermeasures and suggestions to Group E, including improving corporate governance structure, maintaining a good relationship with banks, making full use of direct financing channels, achieving centralized management of funds at group level as well as strengthening risk prevention in financing.The fifth chapter of this article summarizes the research of this paper and prospects the future.This article has a thorough understanding of the financing theory and enterprise theory by using documentary analysis, survey and case study method and based on extensive reading and searching on domestic and foreign literature. In writing process, the author raises Group E’s present financing problems based on investigations and her work experience, then analyses the current situation and the causes of Group E from financing channels and methods, financing costs, financing structure and financing risks, etc. At last this article puts forward countermeasures and suggestions.The innovation of this paper is that, it overcomes the limitations of current studies mainly in SMEs or parent-subsidiary. It clearly defines the corporate group level as the scope of the study, and tries to analyses financing structure and management level from investment performance.