Research On Optimization Of OURPALM’s Financing Structure Based On Financial Sustainable Growth

The12th five-year plan clearly put forward to promote culture industry become apillar industry of national economy.With strongly support of the national policy, cultureindustry has developed rapidly. As an part of cultural industry, Game industry is alsogrowing fast. Its actual sales income reached831.7billion yuan in2013.Game companieswhich grew up at a special period are faced with increasing pressure and challenges:Whether company can get enough funds to fulfill its mission remains;how to get funds;How to arrange financing scale in different financing mode.The financial sustainablegrowth is the maximum ratio a company can achieve. it can be relax the assumptions inpractice. In this case,the company can not issue new shares.Moreover,it should maintainthe current operating efficiency and financial policy conditions.Using financial sustainablegrowth to optimize the financing structure can explain relationship between enterprisefinancing and growth, and balance enterprise growth and financial resource. In order toaddress the capital requirements about an enterprise’ sustainable development, theenterprise can optimize its financing structure dynamically during its development byadjusting its operating efficiency and financial policy when it chooses refinance.Based on the capital structure theory and the classical theory, the article studiesOurpalm Co., Ltd.Firstly, the article analyzes its current situation and causes of Ourpalm’sfinancing structure and problems. Then, the article optimizes the near future’s and themedium and long term’s financing structure of Ourpalm.Finally,the article put forwardsome safeguard measures. In the analysis process,this article gains the followingconclusions: Ourpalm’ financing structure shows about external equity financingpartiality,the low asset-liability ratio, the high proportion of liabilities covered by currentliabilities, the short of self accumulation, and the limit of government subsidies. Thereasons for the irrational financing structure are about the capital markets’ financingsystem, the enterprise’s life cycle stages, the character of its assets, informationasymmetry, its constraint mechanism of equity financing and the aspiration of largeshareholders to remain the control. The company is Create value while growingquickly.due to shortage of funds,Ourpalm Co.can optimize the financing structure inrefinancing activity.