Research On The Influence Of Financing Structure To Business Performance Of M Limited Corporation

M Company Limited is an influential coking enterprise inShanxi Province. As a well-developed company in the family governance model,it has made an essential contribution in factors such as local economy andemployment. Depend on the supportive policies provided by the governmentand the financial support provided by the progress of the financial market, thedevelopment of family firms has quickened obviously. In reality, however, Mcompany facing many problems such as the irrationality of inheritance as wellas structure of corporate governance, and difficulties in financing, all of whichaffect the development of M company to a large extent. Thus addressing thefinancial constraints is of great significance to the healthy and sustainabledevelopment of M company.In academic circles, case-oriented researches on the effect of financingstructure of listed family-owned firms to business performance in thetransitional economy of China is still relatively small. The paper analyzes thepresent financing situation of M company from the aspects of debtfinancing, equity financing and internal financing. Using the theory of financialgrowth cycle, the paper also focuses on the impact of financing structure onbusiness performance in M company.Based on the former research, the paper theoretically explains the effectof existing financing mode selection to business performance of M company.Using the factor analysis method and considering influencing factors in a comprehensive way, this article presents a index that can roundly measurethe enterprise’s performance level. The paper uses empirical methods to analyzethe relationship between financing pattern and business performance, andmakes some suggestions about how to promote the in situation in M company.