The Choice Of Financing Strategy Of Real Estate Enterprises Based On Value Creation And Sustainable Growth

In modern financial management,sales growth is the motivation to support the existence of enterprises,through the sales growth to achieve real value creation,to create greater value for shareholders to achieve the goal of maximizing shareholder wealth.In the process of enterprise management,sales growth too fast or too slow is not the best choice,running situation and the financial strategy of the enterprise management should be combined,according to the existing financial conditions to choose the suitable grow speed for enterprise development in a long time.When sales growth speed is too fast,enterprise existing capital is difficult to meet the requirements of the growing scale of operation,easy to cause cash flow tension,taken in the process of operation will increase business capital chain rupture and cause the risk of failure;When enterprise growth speed is too slow,realize value creation's ability is weak than other firms,industry faces acquired by other enterprises or the risk of bankruptcy.Therefore,enterprises need according to the market situation and their own financial situation to choose the appropriate growth to achieve sustainable development.Corporate financing strategy and sustainable growth are closely related,how to choose the appropriate financing strategy according to the sustainable growth rate is the key issue that needs to be considered in the enterprise management.This paper argues that,the choice of the financing strategy should be combined with value creation and sustainable growth as the goal,enterprise real value creation is not a simple sales growth and profit increase,but need to stand on the strategic point of view of sustainable development,the guarantee value creation on the basis of rational allocation of financial resources.In this paper,the real estate enterprise listing Corporation Poly Real Estate as the object of study,combine the value creation,sustainable growth and financing methods to choose,based on two dimensional matrix model,the internal relation between value creation and financing strategy is studied theoretically,and the corresponding financing strategy is provided for the management of enterprise management.This paper discusses the writing background and research significance,and through the domestic and foreign literature summary,expounds the real estate enterprise financing mode,value creation and sustainable growth and other concepts of the theoretical basis.According to the two dimensional target of corporate financing strategy selection,build EVA/SGR matrix as an analytical tool,the four quadrant of the matrix model respectively represent the value added cash shortage,the value added cash surplus,the impairment type cash surplus as well as the impairment type cash shortage,and put forward the corresponding financing strategies to be adopted by the type of enterprise in each quadrant.Based on the above theory,the introduction of poly real estate as the research object for case analysis,based on poly real estate equity financing and debt financing,retained earnings financing three aspects to analyze its overall financing situation of nearly five years,and to evaluate existing financing strategy.According to the annual report data to calculate the enterprise economic value added and the sustainable growth rate of different years,different year is obtained by calculation results in different quadrant,and based on the EVA/SGR matrix,the analysis of the applicability of the existing financing strategy,and put forward to aim at the value creation and sustainable growth of the corresponding financing strategy.Due to the particularity of the case company data,through the calculation in nearly five years of economic added value and the sustainable growth rate,it is found that the data does not exist in the second quadrant and the third quadrant,therefore,only the first quadrant and the four quadrant is studied in this paper.In combination with Poly Real Estate's specific financing choice in recent years,the selection of financing strategies and matrix model of financing strategy are aim to value creation and sustainable growth.At present,the research on the combination of value creation and sustainable growth is less,this paper provides a new research idea in a certain sense,EVA/SGR matrix model is the necessary tool of enterprise financing strategy choice,not based on the matrix model of financing options is unscientific,EVA/SGR matrix in the practical application has certain scientific and practical.