Research On The Impact Of Private Enterprises Financing Behavior On Business Performance Under The Perspective Of Life Cycle

Private enterprises have become an important pillar of the state-owned economy,and their contribution is huge.However,the biggest bottleneck affecting their development is financing.Financing can not only guarantee the normal operation of a company,but also affect the development of the entire social economy.Private enterprises should be carefully considered for financing when it is difficult to finance.Private enterprise financing is a dynamic process in which companies have different capital structures at different stages of their life cycle.Life cycle theory analyzes enterprises from a dynamic perspective,and believes that enterprises face market environment,external pressure,enterprise status and enterprise risk changes in different life cycle stages.Different life cycle stage characteristics will inevitably affect enterprises to adjust business decisions,while financing behaviors as enterprise production an indispensable part of business activities will be adjusted in time with the different capital needs and financing environment of the enterprise.Different financing behaviors will have different impacts on the enterprise,which will affect the business performance of the enterprise.At present,domestic and foreign scholars pay attention to the relationship between the life cycle of listed companies and financing behaviors.There are many aspects of the relationship between financing behavior and business performance.From the perspective of life cycle,the relationship between financing behavior and business performance is less.Combining life cycle with financing behavior,researching the impact of private enterprise financing behavior on business performance from the perspective of life cycle,analyzing the difficulty of financing private enterprises from another angle,formulating a financing strategy for private enterprises,and constructing reasonable capital structure and improvement of company value have very important theoretical and practical significance.This paper uses literature research method and empirical research method to study and analyze the relationship between private enterprise life cycle,financing behavior and business performance.Firstly,it reviews the research status of scholars at home and abroad,summarizes the impact of life cycle on financing behavior,and the impact of financing behavior on business performance.It then explains the concepts related to life cycle,financing behavior and business performance and expounds the relevant theoretical basis.Secondly,it analyzes the overall development and operation status of private enterprises,regional and industry distribution status and financing status,summarizes the problems and causes of current private enterprise financing,and combines agency cost theory,financing priority theory and life cycle.Relevant theories and the research conclusions of the scholars put forward the research hypothesis.Then,using the 2013-2017 private listed company as a research sample,the principal component analysis method was used to measure the business performance,and the Dickinson cash flow method was used to divide the life cycle into the growth period,maturity period and recession period.Finally,the private enterprises in different life cycle stages are proposed to optimize the financing structure,and the shortcomings of this paper and the future research directions are proposed.The research results show that there are significant differences in the financing behaviors of private enterprises between different life cycles.The endogenous financing behavior has a positive correlation with the performance of private enterprises in the growth period.There is no significant relationship between the other two periods.In the external financing,the equity financing behavior in the growth period is more effective than the debt financing,and the rest of the life.The credit stage financing in the cycle stage has a greater effect on the improvement of business performance.Private enterprises should adjust corporate financing behavior according to their different life cycle stages,pay attention to the accumulation and application of endogenous financing and seize the opportunity of the development of bond market,and rationally use enterprise resources to promote enterprise development.