Study On Financing Strategy Of Chinese Film Enterprises Based On Enterprise Life Cycle Theory

With the development of our country's socialist construction,the development of cultural undertakings were vigorously promoted,especially the development of media and film industry.Since the new century,China's media and film industry has developed rapidly,in which the development of the film industry is particularly outstanding,forming a large market with high degree of marketization.By the year of2015,China's total annual box office was more than 44 billion yuan,with accumulated audiences of 1 billion and 256 million,which exceeded 1 billion for the first time.At the same time,the financing demand in film industry is increasing continually.There are nearly 700 films each year,and 14 billion to 21 billion is needed just in film content making if each film need production cost of 20 million to30 million.Huge financing demand bings great challenges to the development of film enterprises.With growing development of financial market,the financing methods become more diverse,but there are still lots of problems about financing difficulties in the film industry development process and film enterprises in different stages of development also have varied requirements to financing.Above all,financing strategies are very important to the development of film enterprises as well as the film industry.This paper takes up the study on financing strategies of film enterprises in China,selecting enterprise life cycle theory as this paper's study basis.On this basis,this paper analyzes the financing status and ways of China's film enterprises and found out relevant problems.Then,the paper takes H.Brothers as an example and describes its financing strategies in stages of start-up,growth and maturity in detail,and then gives some anlysis.H.Brothers mainly uses endogenous financing and advertising in start-up stage.In growth stage,H.Brothers' financing strategy is the comprehensive use of private equity financing,mergers and acquisitions,government tax preference and government subsidies,as well as creative bank loans and other means.In maturity stage,H.Brothers' financing strategy mainly relied IPO,supplemented by the issuing(ultra)short-term financing bonds.With the conclusion of H.Brothers' financing experience,fundamental principles and suggestions of financing strategies which has general applicability has been put forward,based on the enterprise life cycle theory,in order to promote China's film enterprises sustainable and healthy development.This study has some innovations,mainly reflected in the study object selection,aswell as the theories and methods used in this study.Based on enterprise life cycle theory and other related financing theories,and from the perspective of dynamic needs in the development of film enterprises,this paper provides a set of financing stragegies which was proper to film enterprises and adjusted according to the changes of its development stages.The whole study process has some innovations.At the same time,this paper has some deficiencies.Although this paper has proposed different financing strategies according to different development stages of film enterprises,I am not able to quantify the financing strategies and relevant enterprise situation and environment condition.I will continue to improve this in my future work and study.