Research On Financing Performance Based On The Enterprise Life Cycle

With the development of our economy and the deepening reform of coal industry,China’s coal industry got rapidly growth nearly twenty and thirty years. The scale ofcoal enterprises expands increasingly and its power rises quickly. But in recent years,the development of the coal industry has slowed, its profit decreased, and even someenterprises’ profit became negativity. In some way, it indicates that the peak of coallisting companies has passed. The survival and development of the enterprise aredirectly related by financing. And the financing is one of the important decisions at anydevelopment stage, especially the slow stage. So the coal enterprises face an importantissue that how to finance effectively in different stages. Therefore, based on theperspective of life cycle, the study on the financing performance of coal listingcompanies has vital practical significance.This article firstly elaborates the research background and the researchsignificance, Sorting and reviewing the related literature at home and abroad about thefinancing performance and the life cycle; Secondly, I discusses the theory of financingand life cycle, including the connotation of the life cycle theory, classification and thecharacteristics of each stage and the definition of financing and the way of financingand so on. It laid the theoretical basis for the back of the empirical research; Again, Idescript the feature of each stage of coal enterprises and its influence factors; Last, Idivided the coal samples of listed companies into two major categories of maturationand decline based on the accounting indexes: The Main business revenue growth andROE, in researching on characteristics of financing respectively. I select independentvariable index: asset-liability ratio, asset bond ratio, equity financing ratio, thecompany size, collateral value and choose the Operating profit ratio and ROA as thedependent variable index. Meanwhile, using the method of descriptive statistics andregression model for related research, it is concluded that coal listed companiesfinancing is given priority to creditor’s rights financing, differently from experts study:the equity financing preference of listed companies in our country; The asset-liability ratio became higher and higher from mature entering of the coal enterprises, but therole of excessive leverage to the recession of coal enterprise has bad affection. At thesame time, the ROA and the Operating Profit Ratio has the decline trend; The maturecorrelation of the asset bond rate and the financial indicators is better than that ofrecession, showing that maturity should strengthen the issue of bonds; The recession’ scorrelation of equity financing rate and the financial index is better than that ofmature;The scale of enterprise has negatively correlated to ROA, suggesting thatrecession of the coal enterprises should increase the proportion of equity financingunder the existing conditions.At the same time, They should reduce production line toprevent blind expansion causing the rise in the cost of financing and the unreason offinancing structure to realize the maximum of the financing performance.