Research On The Financing Strategy In Eastern Gold Jade Corporation

With the reforming of economic system, the enterprises financing strategies has also changed a lot. Previously, state-owned enterprise cash and cash equivalents are allocated by country, so financing strategy did not play the main role. Today, with the coexistence of multiple economic types of enterprises, enterprises begin to rely on their own ability to solve the funds problem, and financing strategies give full play to its role in this era. At the same time, the state also makes an effort to strengthen financial support for enterprises. Under the national policy to support the financing behaviors of the enterprises, they should make good use of this fine financing environment to serve their financing strategies and prop up their economic development. However, some companies went bankruptcy because of the financing strategy problems, so the capacity of financing strategy will become the key to the market competitiveness. Through the study and research on the financing strategy problems in Eastern Gold Jade Corporation(600086), firstly we can help enterprises to establish a scientific financing concept, and promote the development of enterprises under the management benefit. Secondly, through optimizing the capital structure of the enterprise, the financial risk of the enterprise would be reduced. Finally, the development direction for the corporate finance team would be decided and some theoretical and practical guidance for their financing work would be provided. In addition, a useful reference for other enterprises to solve similar problems would be provided.This article combines the theory and case study method to research on the financing strategy in Eastern Gold Jade Corporation. Relevant data are firstly collected and the statistics are summarized, compared and then a suitable financing strategy for the development of enterprise is worked out. This paper starts with the background and significance of the topic, develops with a literature review both home and abroad, and finally states out its research approach and its basic framework. The theories concerned about financing strategy are clarified in the paper. And Eastern Gold Jade Corporation is introduced as a case. Its current situation of financing strategy and its problems of capital shortage and capital structure are analyzed. In order to solve its problems, all the factors influencing financing strategies are taken into consideration and a solution is proposed. This solution is used to handle with the simulated situation of 2014 and the simulation effect is analyzed and assessed, thus to guarantee the effectiveness of the solution.The conclusions are as following: for those enterprises short of value-added capital, the reasons for their shortage and depreciation should be found out, then the sound financing strategies could be made out. The case study shows that the capacity of financing should be improved. Improving the internal financing ability should be based on improving the profitability of the enterprises while improving the external financing capacity relies on optimizing the capital structure, financing techniques, financing sources and the financing structure. Only in this way can the profitability and growing capacity of the enterprises be enhanced.