Research On Financing Strategy Aiming At Financial Sustainable Growth In The Listed Company

The financing strategy research on listed companies has always been a key andcomplex problem in the financial management theory.The present research fromdomestic and foreign range mainly focus on the financing amount calculation,theanalysis of financing channels and the effects of financing structure on enterprise values,but seldom discuss the relationship between the financial sustainable growth rate andfinancing strategy.With the capital market developing, enterprise’s value maximization is gettingmore and more operators’ and investors’ acception,of which the most directperformance is sales growth, profit increase. Sales growth is consistent with commercialspirit as well as company goals. However,rapid growth easily lead to corporate financialresource constraints and a shortage of funds.If managers are not aware of potentialdanger in time,money may run out.Enterprise shall seek a kind of balanced growth,namely’do not run out of business in the context of financial resources,enterprises canachieve the maximum growth’.It’s financial sustainable growth in corprate finance.Enterprise’s sustainable growth rate is the quantitative expression of the way ofbalanced growth and affects enterprise’s financing strategy through two aspects ofoperational efficiency and financial policy.This article analyses the finance strategy from the perspective of listed company’sfinancial sustainable growth.It reveals the inevitable connection between them based onthe sustainable growth theory and the classical financing theory and puts forward theopinion that the choice of financing stategies should be based on financial sustainablegrowth.Then it analyses the general financing strategy when faced with the gap betweenthe actual growth rate and sustainable growth rate,brings forward the new financingtarget namely financing ability of sustainable growth.Based on the financing target thisarticle’s view is as follows: enterprises should set up the thourght of sustainable growthby improving the operational efficiency and improving financial policy.Enterpriseshould give full play to their own ability to accumulate funds and take the endogenousfinancing as the raw power of sustainable development.Based on making full use ofoperational efficiency,managers can consider the debt financing and equity financing,which is in line with the western capital structure theory the Pecking Ordertheory:internal financing—debt financing—equity financing. This article adopts combining theoretical analysis and case analysis,chooses thefinancial data during2007to2012of Gree electric appliances and Meiling appliances.Itmakes the comparison and analysis of the two listed companies about the financingstrategy and sustainable growth in6years.It finds the success of Gree electricappliances and the wrong places of Meiling electric appliances on the financing strategychoice.Through the perspective of sustainable growth rate,this article studies corporatefinance strategy choice,explores the financing way which conforms to thecharacteristics of the listed company itself and trys to make the long-term financing planfor the enterprise,promoting enterprises’s sustainable development.