The Financial Preference Research Of Firms During Their Life Cycle

Life cycle is from bionics and has been introduced to many subjects such as financial structure etc. There are many research shows that there are deep relationship between company life cycle and their financial structure, while there is little research in this field in China. This paper is focus on this field and to explore the relationship between company's life cycle and their financial structure in China.There are five parts in this article. The first one is the introduction of the sense of this article and the environment when it is written. The second one reviews the development of financial structure and the one of life cycle in the research overseas, and then introduces domestic research and empirical findings. The third chapter reveals the whole design of the empirical research in this article. Then it is showed the empirical result in the forth chapter. You can see the conclusion in the last part and find the direction of future research there.To sum up, companies in China will have a U shape development in there financial structure during their whole life cycle. And they will choose different financial methods when they are in different life stages. And it is found that there are many different factors which could effect the companies' financial methods such as the size of company, the power of the company makes money and the power of the company growth and the tangible asset etc.