Research On The Financing Strategy From The Perspective Of Enterprise Life Cycle

Only by dividing the enterprise life cycle and studying the different economic status of enterprises in different periods,can they put forward corresponding solutions to the different issues of the enterprise,and realize the sustainable development goals.With the rapid development of globalization and integration and the fierce market competition environment,every company wants to be in an unbeaten status,so as to achieve the sustainable development.Capital is the basis and dynamics in the development of the enterprise and the raising of capital is indispensable,especially the funding strategies.In China,the capital market is progressing and the fund-raising channels are tending to diversified,but there are still some problems in practice.The financing strategy case analysis based on the enterprise life cycle theory will follow the research route of proposing?explaning and comparing.This article is to analyse the life cycle and funding strategies of two companies-Midea and KONKA,which have similar history development,then to readjust the effect of financing strategy implementation according to related financial analysis.Studies have shown that home appliance enterprises should make timely strategy at different stages of growth.Given of the fact that large number of enterprises choose the single funding resources,attaching importance to the diversified funding strategy as well as maintaining an open development model is essential.What is important to the formulation of funding strategy is to possess a definite thought in the stage of development of enterprise.Through comparing of credit and equity in this paper,it can be concluded that the combination of these two strategies will lead the enterprise to rapid and steady development.In view of their long development times,these two household appliance companies will enter a new development period and readjust their development and product strategies in 2000 after studying their development process.So 15 years' data of each company will be selected to analyse.To combine enterprise life cycle theory and fund-raising theory is an extension of the traditional finance theory,and can improve the effectiveness of funding-raising,which will be more practical.