Financing Structure Analysis Of Multinational Corporations

With the development of economic globalization, multinational corporations as one of the most advanced form of business organization, the impact on the world’s economy is enormous and far-reaching. More and more companies change their development strategy to the global development strategy, multinational companies have become the norm in business. Among these, the number of corporations in China has also increased.In the modern multinational financing activities, financing structures are often used as the focus of attention. Under the influence of external and internal impacts, the financing structure of multinational companies will be affected, showing a structure different from the financing of domestic companies.Firstly, Based on the theory of financing structure, combined with factors in multinational operations,this paper analyzes the financing structure of transnational corporationsfrom the theoretical point of view, and propose analytical framework and indicators of multinational corporations financing structure. Then give an analysis about the financing structure of the multinational with the case of Huawei.Combined with Huawei’s annual financial data and other information can be collected, wemake anin-depthanalysis about Huawei’s financing structure. Analysis of Huawei’s financing structure includes not only the proportion of debt financing analysis, but also including analysis of the structure of equity financing and debt financing structure. According to Huawei’s financing structure where is reasonable and applicability of other multinational, draw the characteristics of the financing structure of Huawei. Finally, combiningthe theoretical analysis and case analysis, we makesome optimization recommendationson the financing structure of multinational corporations : Multinationals should maintain a reasonable proportion of debt financing; Multinationals should establish a diversified debt structure; Multinationals should be appropriate to increase the proportion of overseas financing; Multinationals should increase the proportion of managerial ownership; Multinational companies shouldflexible use equity incentive.