Research On The Hainan Aviation Financing Strategy Based On EVA And Sustainable Growth

The purpose of the enterprise's survival is to grow and gain more income,so as to realize the continuous growth of the enterprise value.Financing,as a source of funds for enterprises to seek development,is an indispensable part of business management.The growth of enterprises is too fast,and the existing resources can not meet the financing needs of high growth businesses,which may lead to the breakup of capital chain and financial crisis.Otherwise,too slow growth of enterprises will lead to waste of resources,which will lead to mergers and acquisitions or market risk.Therefore,enterprises should pursue a balanced development.As the third industry of our country,the role of air transport industry in international economic cooperation is more and more important.In recent years,the rapid expansion of China's civil aviation industry has resulted in large-scale expansion and mergers and acquisitions,and capital is the root of continuous development and expansion.With the continuous expansion of the financing scale of airlines and the large demand for financing,because of the industry characteristics of high risk,high investment and low return,the pressure and risk of financing are increasing.There is a close relationship between EVA and sustainable growth and the financing strategy of enterprises.This paper attempts to integrate the three elements,combined with relevant financial data and financing status of case companies,Hainan airlines,and explore how enterprises should choose financing strategies rationally.This article first carries on the analysis and review of EVA,SGR and financing strategies and the relationship between the three theories;secondly introduce the case of Hainan airlines,HNA 2007-2016 financing structure are analyzed;then the calculation and analysis of Hainan Airlines EVA,based on the Van Horne sustainable growth model to Hainan airlines for the sustainable growth rate.EVA is combined with sustainable growth to form EVA/SGR matrix.It analyzes the problems in HNA's financing strategy,and puts forward corresponding financing strategies for the existing problems.Finally,based on the combination of the theoretical research and case a of Hainan,put forward the following conclusions: in the process of enterprise development,in which EVA is positive on the basis of facing a shortage of funds,financing strategy,optimization of internal financing,followed by foreign debt,in a serious shortage of funds under the condition of moderate equity financing,which is also consistent with the pecking order theory.In addition,the EVA/SGR matrix plays a guiding role in the selection of enterprise financing strategies and provides theoretical basis for the the enterprise management to make effective economic decision.