Financing Strategy Of Sustainable Growth Based Finance

The existence of the enterprise is to grow, the goal of business management is tomaximize shareholders’ wealth. After the financial crisis, the domestic enterprises arelooking for the development chances. And enterprise development is inseparable fromthe financing strategy. At present, China’s enterprises are trapped in "re-financing,light growth" situation, there are many problems in their financing strategies. As thepillar industry of the national economy, manufacturing enterprises should receivemore attention, but due to its industry characteristics, their financing strategies arealso exposed to many problems.This article is based on the financial perspective for sustainable growth,exploring how manufacturing enterprises to develop financing strategies. Firstly, Idiscuss the research’s background and purpose. Then by reviewing the currentresearch studies, I try to find some innovation. And I analyze the theoretical basisrespectively for sustainable growth-related and financing strategies related. On thebasis of the theory, I introduce the business case of Wanhua. I analyze its financingconditions since its IPO in2001, including equity financing, debt financing andretained earnings financing. Then I use the EVA/SGR model as the analysis tool. Icalculate the EVA of Wanhua and analyze the overall development from2008to2012,using EVA/SGR model as the basis to analyze the problem of its current financingstrategy and proposing financing strategies of Wanhua based on sustainable growth.Finally, based on the theory and the study of the case, I present the researchfindings for manufacturing enterprises in the perspective of sustainable development.Company should firstly ensure that its EVA is positive. As for the financing strategies,the best pecking order is retained revenue financing, debt financing and equityfinancing.