Research On China Railway Finance Strategy Based On EVA And Sustainable Financial Growth

Enterprise management in order to better growth,sustainable growth means that the increase of enterprise value,the growth of enterprise value need enough money to support,financing is required for the source of funds to ensure enterprise survival and development,enterprise financing strategy research is a key problem in the theory of financial management.Enterprise financial growth too quickly will cause a shortage of funds,make the enterprise financial resources nervous,produces the risk of capital chain rupture,much slower growth may be eliminated by the market,or be acquired by a business or industry more powerful,therefore,companies should pursue a way of sustainable growth,performance in the company's financial is the financial sustainable growth,sustainable growth is on the premise of not run out of financial resources to achieve maximum growth.Economic value added,financial sustainable growth and corporate finance strategy have the intimate contact,the article combine the three studies,expect to find out the inner link between them,and connecting with the case company of China Railway Group Limited,it's relevant financial data and the financing situation has carried on the thorough research of this topic.on the basis of the analysis of relevant theories,this article chooses Van Horne sustainable growth model to analyze the case of enterprises.In this paper,the economic value added and sustainable growth are combined to form the EVA/SGR matrix model.Different quadrants of the model correspond to different enterprise investment and financing strategies.In the case analysis,the enterprise financing each year and EVA/SGR matrix analysis,found that the China railway has relatively stable operating and financial policies,enterprise scale is continually expanding,basically reached the same level of the enterprise's sustainable growth rate,the actual growth rate on the sustainable growth rate fluctuation in recent years,can be said that theenterprise achieved sustainable growth.Finally,based on the related theory and case analysis come to the following conclusions:in the choice of enterprise financing,facing a shortage of funds,should choose endogenous financing first,followed by debt financing,when faced with a large shortage of funds timely choose equity financing,this is consistent with the content of the optimal sequence financing theory.In addition,the EVA/SGR matrix model in corporate finance strategy formulation is of certain reference and the model can be used as an effective tool in the analysis and prediction of actual management,provide theoretical support for the enterprise managers in economic decision-making.