Research On The Economic Consequences Of Relational Financing

With the continuous development of science and technology in China,the continuous innovation of information technology,the Internet has become an indispensable part of our daily life,Internet enterprises are constantly growing.Because Internet enterprises belong to innovative enterprises,their high growth leads to large upfront capital demand,but these enterprises often have difficulties in financing,which to a certain extent restricts the development of the company.In China,a "human society" environment,these enterprises often use relational financing to solve the problem of financing difficulties,to meet the financing needs.So how the relationship financing effect still needs us to study,this article takes the form of the case,selects the Music Vision network as the case,carries on the economic consequence research to the music Vision Network relational financing,gives other related enterprises in the choice financing can have a contrast case,makes the decision can have some reference significance.The case studied in this paper--Letv is a typical case of relational financing.The enterprise has repeatedly used relational financing to finance enterprises since its listing.Its number of times,the amount of large has been the theoretical and practical circles of concern,it is worth our research on it.First of all,this article will be a summary of the case company,including the company profile,the company's development process and the company to carry out relational financing channels analysis,and secondly,the enterprise to carry out relational financing motivation analysis,analysis of the need for relational financing,and then use the event research method,This paper analyzes the economic consequences of the market economy before and after the relationship financing of the network,and then compares and analyzes the cost-effectiveness of relational financing in combination with the company's financial data and some public data.Finally,this paper draws conclusions through a series of analytical studies,and puts forward some constructive suggestions for other companies to carry out relational financing.Through case studies,the conclusion of this paper concludes that the use of relational financing by Chinese enterprises can alleviate the financing pressure to a certain extent.However,we should not rely too much on relational financing,and we should also pay attention to the governance of the company and the arrangement of the financing structure while carrying out the relationship financing.