A Study On The Influence Of Jiuri New Material Equity Financing On Its Growth Ability

Historically,domestic and foreign scholars on corporate equity financing behavior,the company's financial performance and growth capacity changes are very concerned about.According to the financial management theory of foreign investment and long-term financing theory,the enterprise should invest in projects with positive net present value,When the company has considered all projects with positive net present value,the company will arrange for the new long-term financing.At this point,the company's growth capacity or the company's financial performance should show an upward trend.However,on this issue,domestic and foreign scholars after a long empirical study found that enterprises in the equity financing,corporate growth and financial performance is a downward trend.This article to the new three board listed companies "Jiuri New Materials" as a case.To study the impact of SEO on its growth ability and the transmission mechanism.Based on the growth theory and the research results of the predecessors,this paper constructs a comprehensive evaluation system based on the financial indicators and other financial data,which is the growth factor of the " Jiuri New Materials ".Financial indicators include:profitability indicators,solvency indicators,operational capacity indicators and foreign investment indicators.Other financial data mainly include:period expenses,accounts receivable,inventory,long-term loans,short-term loans,net cash flow from operating activities,net cash flow of investment activities.Internal micro-factors that affect the growth of enterprises can be reflected in the above financial indicators and financial data.Finally,the " Jiuri New Materials"listed after the equity financing behavior combined with the company's long-term development strategy,and a reasonable allocation of funds raised to increase the growth of enterprises.Through the case study of the "Jiuri New Materials",it is found that the SEO behavior has improved its growth ability,and its matching of the raised funds and its business strategy and equity financing behavior is very reasonable.Finally,through the combination of growth theory and case analysis,the author analyzes the influence path of equity financing behavior on the growth ability of enterprises.First of all,the company to match the equity financing behavior to increase the equity capital,to maintain a stable and healthy capital structure,increase debt financing,both to enjoy the debt financing tax shield effect,but also to control financial risk.Equity financing has led to an increase in the scale of debt financing.Second,the allocation of the use of a large number of short-term liquidity is the key to the ability of equity financing to influence growth.The company will raise part of the funds invested in the period of the increase in costs,foreign investment and expand the scale of credit sales.The remaining funds are used to increase the size of the stock reserve and can reduce the cost of inventory shortages in the process of growth.The rational allocation of working capital,an increase of the growth capacity of enterprises.