Research On The Optimization Of Financing Decision Of ZD Company

Financing is one of the most important activities of a company's sustainable operation.Therefore,financing strategy is the core issue related to the survival and development of a company.Financing strategy includes financing opportunity,financing channel,financing preference,financing scale,financing period and financing risk.The effect of the implementation of the financing strategy directly affects whether the company's investment decision can be implemented according to the expected implementation as well as the capital cost level of the company in the future,at the same time,it also affects the company's future debt paying ability and financial risk level,and will eventually have an important impact on the stockholders' wealth.The financing strategies that conform to the actual development of the company can play a positive role in improving the company's financial situation and capital structure,reducing the capital cost,improving the corporate governance structure and improving the interests of the shareholders and creditors,and it has a positive effect on the sustainable and healthy development of the company.ZD group was listed on the Shanghai stock exchange in 1997.The early success of the market has raised valuable and abundant development funds for the company,providing material assurance for the company to focus on the main industry of auto parts and moderately diversified development.However,regardless of the IPO in 1997,or the Orienteering since twenty-first Century,the ZD company has a clear preference for equity financing,and there is a series of unused raising funds,low efficiency of capital use,higher proportion of equity financing,single debt financing form,high short-term borrowing ratio and irrational financing structure.And,as a large state-owned holding company,it failed to co-ordinate its subsidiaries to form a financing force to win more financing interests for the company.The effect of the implementation of the financing strategy directly affects whether the company's investment decision can be implemented according to the expected implementation as well as the capital cost level of the company in the future,at the same time,it also affects the company's future debt paying ability and financial risk level,and will eventually have an important impact on the stockholders'wealth.In view of the existing problems of ZD company's financing decision-making,this paper studies according to this framework.Then,on the basis of the review at home and abroad,the current situation and problems of ZD company financing decision are deeply analyzed,and the macro and micro environment of the company financing behavior is analyzed.Finally,this paper is finished on the financing decision of ZD company.Good and optimization,put forward specific specific plans,and draw the full text of the conclusion,that is,the manager of ZD company,should proceed from systematic thinking,conform to the company development strategy,consolidate the company's leading position in the field of auto parts in China,diversify the financing channels,optimize the capital structure,and improve the senior management.Capital cost and risk prevention consciousness,and strengthen the company's financing force at the group level.