Changes In Financing Environment For Financing Of Service Enterprises Selected Impact Studies

Funds are the foundation for the survival of an enterprise and support for the development and expansion of the enterprise.Financing is to solve the problem of insufficient funds when the enterprise expands its scale or invests in projects.The company's financial management is to rationally allocate resources and make preparations for the company's operations,and financing is an important part of financial management.Helping companies make the right choice of financing method is the core of financial management.Differences in financing methods have brought about differences in the capital structure and capital costs of enterprises,and have hidden potential risks to the company's future business risks.Therefore,the issue of financing has always been the core of discussions between the theoretical and business communities.China's economic development is changing with each passing day,and the corporate financing environment is constantly changing.The financing environment that companies face is also increasingly complex.In the face of such difficulties,how to choose the optimal financing method? How to choose the financing method suitable for the company itself? All are problems that we urgently need to solve.The external financing environment used in this paper includes factors such as economic growth(GDP),inflation(CPI),money supply(M2),and credit size.The control variable selects internal variables: the size of the company(total assets or their Number),capital structure(asset ratio),free cash flow(free cash flow = after-tax depreciation-capital expenditures-increase in working capital),liquidation value ratio,etc.These factors are introduced into the multivariate Logit model for each type of financing The method is a regression analysis of the reference object.Based on MM theory,trade-off theory,and preferential financing theory,this paper analyzes the influence of external financing environment on the choice of corporate financing methods.At the same time,we also introduced the theory of financial deepening.Financial theory can help us better analyze the impact of changes in the financial environment on corporate finance and help us to analyze the choice of financing method choices.This article mainly adopts empirical research,applies normative research and literature induction,starts from the external financing environment as an entry point,establishes models,conducts regression analysis,checks robustness,and explores the influence of external financing environment on corporate financing preference.The conclusions of this paper include the following points: 1.The aggregate indicators in the macroeconomic environment have a significant impact on the choice of corporate financing methods;2.The monetary indicators in the credit market represent a significant effect of money supply and interest rates on the choice of corporate financing methods;3.The currency representative factors in the credit market Credit size and money supply have no significant impact on the choice of bank loan financing methods and bond financing methods;4.China's service industry enterprises do not reflect equity financing preference.