Research Of Listed Companies Financing Strategy Based On Financial Sustainable Growth

Enterprises which grow too fast will lack of funds to support their rapid growth, but theygrow too slow will increase the risk of business failure and other large corporate acquisitions.Therefore, it is necessary to achieve sustainable growth for companies which want a stableand lasting development. The rate of sustainable growth of enterprises is closely related to thedecision of financing, so in the development of enterprises it is a important issue which to beconsidered that how to choose the corresponding financing strategy according to the their ownoperating and financial sustainable growth in the need of financial support. Choosing differentfinancing strategies will have different impacts on the development of enterprises.The article studies the listed companies, using the methods of combination of normativeresearch and empirical analysis, quantitative and qualitative analysis. Financial sustainablegrowth is studied with financing options, which not only reveals the inner law of financialgrowth and financing strategy entirely in theory, but also offers realistic basis of choosingfinancial growth strategy for the management of realizing and grasping the increasingcorrectly. Taking the model of financial sustainable growth as a starting point,I analyze thecorrelation between sustainable growth and financing of real estate listed companies, verifythe correlation between financial sustainable growth and the options of financing strategies,prove that sustainable growth situation must be one of the considered factors when a listedcompany chooses financing strategies. Then I combine the model of EVA valuing theperformance of a company and SGR measuring the rate of sustainable financial growth, andimprove the model of EVA/SGR based on the operating risk factors, which provides a tool forlisted companies’ financing strategy. Finally I study how to choose a proper financing strategywhen the listed companies’ actual growth rate is higher or lower than its rate of sustainablefinancial growth, hoping to provide references to the financing decisions for listed companies.