The Enterprise Life Cycle Identification Mark And The Financial Strategy Study

Facing more and more severe pressure of competition, the domestic and foreign enterprises attempt to seek for a method to be able to lengthen the enterprise's life. How to formulate the corresponding financial strategy, reduce or evade enterprise risk of defeat, by identify the stage enterprise located, is the hot topic which the domestic and foreign scholars cared together. This issue tries to find financial identification mark of the enterprise life cycle through longitudinal empirical analysis to Chinese manufacturing industry listed companies, and correspondingly proposes the financial strategies which adapt to the enterprise growth stages by analyzing questions in various stages. This article's conclusion and the contribution mainly embodies in the following three aspects:(1) This research discovers: In the manufacturing industrial ten industries, the industrial life cycle exists very differently influence to the enterprise life cycle. The influence Mechanical equipment, electrical, instrumentation and the electronic industries' industrial life cycles to the enterprise life cycle is relatively big; the influence food and drink industry's industry life cycle to the enterprise life cycle is relatively quite small. Moreover, although the enterprise's scale is not the reason of the enterprise's growing and the aging, but looking from our 13 year longitudinal study, the ultra average scale enterprises grow much steadier than the relatively average scale enterprises.(2) this article proposes that uses "the relative growth index" to represent enterprise's growth vigor, and unifies enterprise's other financial indexes like prime operating revenue, net profits, total assets and so on to judge the life cycle stages. The relative growth index's decision rule is: When enterprise's relative growth index is positive: If the index changes increasingly, basically may conclude that the enterprise is in the growth stage of the life cycle; If the index is relatively stable, basically may conclude that the enterprise is in the mature stage of the life cycle ; When enterprise's relative growth index is negative: If the index changes increasingly, basically may conclude that the newborn stage of the life cycle ; If the index changes decreasingly, basically may conclude that the enterprise is in its decline stage of the life cycle.(3) Empirical study result indicates: enterprises in the different growth stages may face the different financial questions. The enterprise must adopt the different financial strategies to match with its growth stage, promotes the enterprise's health, stable and sustainable development.