Research On Tencent's Financing Strategy Based On The Enterprise Life Cycle Theory

Since the outbreak of the fourth industrial revolution in the 1990 s,China’s Internet and related technologies have developed to a thriving stage.With the implementation of "Internet +",with the rapid development of Internet technology,thanks to the growing number of domestic Internet users,China’s Internet industry has developed rapidly,and a large number of newly established enterprises have emerged.For start-ups,there is often a shortage of funds,which requires financing to obtain funds to extend the life of the company.This paper adopts literature analysis method and case analysis method.Taking enterprise life cycle theory and capital structure theory as the theoretical basis,Tencent is selected as the case object,and its growth process is divided into initial stage,growth stage and maturity by comprehensive financial index analysis method.During the three life cycle stages,the financing strategy is analyzed based on the financing environment,financing methods and financing structure at different stages of the life cycle.According to the case analysis,the financing strategy that Internet companies can learn from at different stages of the life cycle is obtained.Internet companies have different financing needs at different stages of their life cycle,and should choose appropriate financing strategies based on the financing needs and characteristics of the life cycle stage.Start-up companies should focus on equity financing,especially venture capital.Internet companies in the growth stage can raise funds through a combination of short-term debt financing and equity financing.If the company’s profitability is high,the internal financing method is preferred.At the maturity stage,the financing environment is relatively mature.Internet companies can raise short-term funds through commercial credit and short-term bank loans,and raise long-term funds through bonds and long-term loans.From the perspective of life cycle,this paper studies the financing strategy with a single enterprise as an example,enriching the research methods,and this paper selects the comprehensive financial indicator method based on the characteristics of the Internet,and compares the high and low changes of financial data and financial indicators through vertical time.To divide the life cycle of the enterprise,it has certain innovation。...