Research On The Financial Support Model For Platform Enterprises' Crossover Growth

In recent years,a number of Internet platform enterprises represented by Baidu,Alibaba and Tencent(BAT)integrate the traditional entity enterprises to develop the platform ecosystem,which presents the trend of borderless development.The crossover can increase the user scale of the platform,reduce the transaction costs on the platform,and promote the creation of network value.Taking advantage of the platform model to cross the operating limitation has become one of the ways to realize leaping growth for many enterprises.At the meanwhile,the financing events of these platform enterprises are noteworthy.Over the past twenty years,China's Internet enterprises successively raised several waves of listing overseas,and after the listing,they financed their crossover operating through many ways like the corporate bonds,bank loans and rights issues.In the year 2013 and 2014,Alibaba Group got a 8 billion USD syndicated loan and 8 billion USD corporate bonds.Compared with the Internet enterprises' crossover operating phenomenon,the study on the platform enterprises' crossover is slightly lagged behind,and it is short of the study on the financing model during the crossover process for the platform enterprises from the new perspective of crossover evolution.At the background,the relative literatures and theories are reviewed to demonstrate the necessity of financing support for the crossover growth,and the theoretical analysis and validation of the financing model for the crossover growth of the platform enterprises are the major issues.The crossover growth process of the platform enterprises is the process of borderless development,which can be divided into the following three evolution stages,that is to break the boundary limitation,crossover and borderless.Based on the economic characteristics of the platform enterprise in each evolution phase,the financing model for platform enterprises'crossover growth is built theoretically,and then the case study and the linear regression is conducted to verify this theoretical analysis.The case about the Alibaba Group's crossover financing verifies that the platform enterprises should mainly choose the risk investment fund to break the boundary limitation,and in the stage of crossover,the platform enterprises should mainly choose the equity financing forms among the increasing financing sources.Furthermore,the panel data of 41 listed Internet platform enterprises from the year 2010 to 2015 is collected to conduct the linear regression analysis in order to verify the propositions for the financing model after the stage of crossover.The statistical analysis shows that the endogenous financing is the largest part in the financing structure,and the mean value of debt financing rate is greater than equity financing rate.The results of linear regression analysis show that the endogenous financing and debt financing to have the significantly positive effect to promote the sample enterprises' business performance,while the equity financing has the opposite effect.According to the rational principles such as the maximization of enterprise's value and the minimum of financing cost,the platform enterprises should comply with the order of endogenous financing,debt financing and equity financing to choose the financing ways.Finally,some suggestions are provided based on the research results.It is good to understand the current crossover activities of the platform enterprises with the perspective of the enterprise boundary.The financial system administrators complete the institutional improvement of the venture capital market,the credit market,the stock market and the bond market to facilitate the financing support to promote the crossover development of the platform enterprises.