Research On Life Cycle Financing Strategy Of Chinese Media Enterprises

Under the guidance of China’s strategy of "strengthening the country by culture",the cultural media industry has developed rapidly,and it also plays an important role in the national economy,with a broad prospect for its development.However,due to the characteristics of "light assets" in the cultural media industry and the tightening of national financial policies,the financing difficulties of media enterprises have become increasingly prominent.Therefore,it is of great significance to study the financing strategies of media enterprises,relieve the financing difficulties of media enterprises and promote the high-quality development of China’s media industry.Huayi Brothers Media Co.,Ltd.(hereinafter referred to as Huayi Brothers)is one of the leading enterprises in the industry and the representative of the development of private media enterprises in China.Its rapid growth and development are closely related to the implementation of different financing strategies in each life cycle stage,and its cases are typical and representative.This paper focuses on the financing strategies of Huayi Brothers in various stages.Firstly,by using qualitative and quantitative analysis methods,it is determined that the company is in the initial stage from 1994 to 2000,the growth stage from2000 to 2009,and the mature stage from 2009 to now.Secondly,it studies the financing strategy of each life cycle stage,analyzes the financing effect and financing risk of each stage,confirms the impact of financing strategy on enterprise performance with financial data,and uses Z-score model to determine the financial risk degree of Huayi Brothers.Finally,it puts forward three inspirations and suggestions for media enterprises’ financing: three inspirations: choosing diversified financing strategies,meeting the financing needs of each period,and mastering the control right of enterprises;Three suggestions: strengthening endogenous financing ability,improving the efficiency of capital use and establishing risk early warning system.