Research On Yanjing Beer SEO And Performance

China is in the primary stage of socialism, is a typical developing country. In the factors of production, China is rich in natural resources and labor, but is lack of per capita natural resources and capital. With China’s rapid economic development, capital accumulate and capital shortage situation has improved. Financing has been a problem for enterprise development. Different from other company, the listed corporation can raise money through equity refinancing. At present, there has been a large number of empirical studies have proved that China’s listed corporation have equity financing preference and that after equity refinancing corporation performance decline significantly. Compared with the stude of western mature securities market, the stude about the relation of equity refinancing and corporate performance needs further study. To understand the financing behavior of China’s listing Corporation, case study is essential research method.To make case study of the relationship between the equity refinancing and performance, first of all, select the industry in urgent need of funds,which is capital intensive industries with market expanding, industry concentration improving. It is the beer manufacturing. And then choose the enterprise. Yanjing Beer raised money through the equity refinancing in the amount of6,400,000,000yuan six times. Summarize the theory about financing and research on equity financing preference, the influence of equity financing, the performance evaluation system as well as Yanjing Beer. Preliminary judgment of Yanjing Beer equity refinancing will make enterprise performance declining. The Yanjing Beer’s behavior of equity refinancing prove equity refinancing preference. From the aspect of the national macroscopic economy, industrial structure and corporate positioning analysis the reason of Yanjing Beer equity refinancing preference. Yanjing Beer prefer equity refinancing, because China’s beer market expands, the industry tends to concentrate; the beer industry need money due to industrial policy and the beer business model. Dividend policy and monetary policy make a direct influence on the stock financing cost and bond financing cost. Yanjing Beer in large funding requirements, the appropriate choice is equity refinancing with lower financing costs. In addition, stock market grow up well, but bond market develop less well. It created favorable environment for equity refinancing. Beer industry in the fierce competition,with the profit rate low, the equity refinancing can strengthen the competitiveness of enterprises in the financial risk. The method and index of performance evaluation is designed as reasonable as possible. To improve the objectivity and impartiality of the analysis method and make the relationship between Yanjing Beer Equity Refinancing Behavior and performance clear, analyze the change of performance caused by equity refinancing and compare the beer industry and Yanjing Beer. After the financial crisis in1998and2008, Yanjing Beer raise money by equity refinancing frequently and take adventage of money to improve beer production through alteration, expansion, mergers and acquisitions and so on. The beer market grow up from1998to2002and from2008to2011at the low speed, during2003and2007at the high speed. In2012, the sales of beer reduced. Yanjing Beer expanded the scale countercyclically. The market for new production capacity is limited.The revenues and profits of new production is restricted. The finding is that in addition to the convertible bonds leading to solvency decreases and the effective marketing strategy to improve profitability and asset quality, equity refinancing of anti-economic cycle have negative effects on profitability and asset quality but make positive influence on the ability of debt paying and growth. And forecast the financial performance of Yanjing Beer after SEO in2013. Profitability and asset quality is going to reduce.The ability of debt paying and growth will get stronger. All in all, Yanjing Beer through equity financing achieves leapfrog development, improves market share, but the profitability, asset quality is potential. SEO for Yanjing Beer is the way to stimulate short-term growth, and the stock market look down upon this kind of growth. With the change of debt market development as well as the external macro economic, industry structure and corporate positioning, financing decisions need to adjust to the situation. Although the conclusion of the case study is not universal, the case study fo Yanjing contributes to make a better understanding of SEO motivation and performance.