Discussion On The Choice Of Financing Strategy Of Yoo Zoo Games

With the rapid development of China's economy,the competition among enterprises is becoming increasingly fierce.It is the goal of every enterprise to obtain more profits and create greater value,so as to ensure the sustainable development of enterprises.And the growing corporate ethos has also led to a series of problems.Too fast growth of enterprises often corresponds to the rapid consumption of resources,which is very easy to lead to the depletion of their own capital flow.However,too slow growth is easy to cause waste in resource allocation,and enterprises have the risk of being replaced by competitors and eliminated by the market.In addition,when enterprises pursue scale expansion and high-speed growth,the problem of capital will follow.If we want to expand the scale,increase production and sustainable development,the enterprise must have enough capital.It is difficult to maintain longterm development simply by relying on the capital retained by the enterprise's own creation and operation.For this reason,many managers began to seek financial support from the market.However,a variety of financing methods make the enterprise managers difficult.Choosing the right financing strategy may bring good luck to the enterprise,and once the unsuitable financing strategy is implemented,it may be like a mountain pressing on the enterprises capital chain,aggravating the risk of the enterprise's capital chain breaking.Therefore,it is urgent to explore a scientific and reasonable method of financing strategy selection.The guiding ideology of value creation and sustainable growth just matches the long-term development goal of the enterprise.At the same time,the combination of two-dimensional matrix can help the enterprise quickly judge whether the capital state of the enterprise is shortage or surplus,whether the enterprise is creating value or damaging value at present,provide reference for the financing strategy selection of the enterprise in different financial states,and put the specific financing strategy actually adopted by the enterprise.In order to solve the problems of the company more effectively,we should judge whether the way of raising funds is reasonable and effective.In this paper,theoretical research and case study are combined.Firstly,different scholars' research views on value creation,sustainable growth and financing strategy selection are summarized.Secondly,it describes the principle,application scope and application process of the two-dimensional matrix of value creation and sustainable growth.Take the difference between the actual growth rate and the sustainable growth rate as the horizontal variable,which also means the measurement index of capital surplus and shortage,and take the difference between the return on invested capital and capital cost as the vertical variable,which also means the measurement index of value creation.The abscissa and ordinate axis can divide the matrix into four quadrants: value creation cash shortage quadrant,value creation cash surplus quadrant,value impairment cash shortage quadrant and value impairment cash surplus quadrant.After introducing the characteristics of four quadrants financing strategy selection of two-dimensional matrix of value creation and sustainable growth in detail,the case company Yoo Zoo Games is introduced.Using the collected financial data to analyze the financing strategy choice of Yoo Zoo Games from 2014 to 2018 since its listing,and verify whether it conforms to the theoretical choice of the two-dimensional matrix of value creation and sustainable growth.Finally,this paper concludes that the twodimensional matrix of value creation and sustainable growth can provide a basis for the choice of financing strategies.The case company Yoo Zoo Games makes full use of the internal capital,but we need to be aware that there are certain risks in the company's capital chain,which can appropriately increase the company's long-term debt rather than excessive use of equity financing.The innovation of this paper lies in that in the current literature on financing strategy selection,domestic scholars mostly use the single angle of sustainable growth to analyze the financing strategy selection,and only a few researchers use the twodimensional perspective of value creation and sustainable growth to analyze the financing strategy selection,and most of the literature research objects are concentrated in traditional industries.However,the financing strategy choice of emerging game industry is lack of guiding policy.This paper uses this perspective to analyze it,which can make up for the lack of this method theory in the existing research literature.In addition,this paper applies the existing methods and theories to the actual case of Yoo Zoo Games,and concludes that the two-dimensional matrix of value creation and sustainable growth can provide a basis for the choice of financing strategies of enterprises,and to a certain extent,it can provide new ideas for the choice of financing strategies of cultural and creative industries.Finally,this paper also puts forward the following three enlightenments:(1)the choice of financing strategy should meet the requirements of the long-term development of enterprises,should balance the advantages and disadvantages of all parties,and choose financing strategy that conforms to the sustainable development of enterprises and truly realizes value creation from the strategic perspective.(2)The choice of financing strategy should conform to the development characteristics of each stage of the enterprise,and the “customized” financing strategy should be set according to different stages and local conditions.(3)We should choose the analysis method of financing strategy reasonably according to the characteristics of our own operation and financing.