Chinese High-tech Enterprise Finance Structure Analysis Based On The Enterprise Growth Cycle

As the new engine of the economic growth, the high-tech companies have become more and more important to Chinese economic growth. The financing is an important aspect of restricting the growth and development of high-tech enterprises. Therefore, it is essential to our country’s economic development on how to meet the financing needs of the high-tech enterprises. The high-tech enterprises with special growth trajectory, and the demand for capital financing options are different in various stages of growth. And according to the pecking order theory, corporate financing choices will be communicated to the outside world different business enterprise information, so in the financing, the company should take debt financing as the priority in front of the equity financing. Moreover, according to the theory bankruptcy costs, there is an optimal capital structure is the minimum cost of business due to the existence of the agency costs.Through the research, we found in the early days, high-tech enterprises faced with the problem of financing needs are not met, while in the growth and mature stages, enterprises are facing the problem of how to choose the financing structure. Through the comparison of the data we found that in this stage of the business assets and liabilities ratio is lower than Ordinary listed companies, which is characterized by high-risk high-tech enterprises in line. In the recession of High-tech enterprises, the debt ratio has been similar to ordinary listed companies, business is relatively stable.The research shows that early stage the way of financing of high-tech enterprises is relatively single, mainly rely on their own capital accumulation. While in the stage of grow and mature, the ways of rising money is more, then the enterprises face the problem of how to choice the best way to meet their money need. Therefore, the main problem high-tech enterprises facing financing is how to rise the money in their stage. Through the experiences of American and Japanese government’ policy on support high-tech enterprises, I think our government should support our high-tech enterprises by take follow steps: increased government support funds, nurturing angel investment funds, set up professional venture capital firms, build demand lower shares traded market which is not only can be traded shares, but debt also can be trade. In addition, improve legislation of high-tech enterprises, provide security for small and medium sized high-tech enterprise’s debt, establish specialized financial institutions to provide loans to small and medium sized high-tech enterprises are also very important to built the complete system of high-tech enterprises rise money. Thus to build a relatively complete system of financing structures to meet the funding needs of early high-tech enterprises.