Research On Enterprise Financing Strategy Based On Life Cycle Theory

Capital is the basis for normal operations is an important driving force to promote the sustainable and healthy development, and how to raise funds to meet the full demand is crucial for the development of enterprises. In recent years, China’s capital market developments and the gradual improvement of corporate financing and more diversified financing channels, but the problem of financing is still prominent. Enterprise life cycle theory enterprise development process is divided into several stages, to reveal the different stages of the operating characteristics of enterprises, and in the different characteristics of corporate financing strategies are different. Therefore, the enterprise life cycle theory of corporate finance and strategy combines with natural resistance, is both an extension of the traditional theory of finance, but also improve the efficiency of financing has important practical significance.In this paper, according to the "issues raised- Theory- An Empirical Analysis-Strategic Choice- A Case Study," the research paradigm, research hypotheses put forward in relations on the basis of qualitative analysis of corporate life cycle and financing structure, based on the empirical analysis of each stage of the life cycle impact of different factors on business the extent of the role of the financing structure, hypothesis validation studies to determine the strategic choice for enterprise start-up, growth, maturity and decline of financing, and are summarized in the form of case studies. The main conclusions of this study are:(1) The different stages of the life cycle of corporate financing structure has significant difference. Long-term debt ratio in the growing maturity and decline ratio is higher, and no significant maturity and decline in short-term debt ratio than in mature and growing recession is higher, but the difference is small and growing.(2) To determine the different stages of the life cycle of corporate financing strategy. Sequential start-up financing strategies that individual investors, institutional investors and government investment; growing mainly rely on debt financing; maturity is more diversified financing strategy; financing strategies recession is the preferred source of financing within the retained earnings, followed by debt financing.(3) This paper reveals the importance of the life-cycle theory of corporate finance strategy development, and draw inspiration by Mengniu Dairy relevant case studies.