Analysis and Selection of Enterprise Financial Strategies under Different Life Cycles

Abstract

The theory of enterprise life cycle provides a systematic perspective for analyzing the dynamic development of enterprises, which divides the evolution of enterprises into four stages: start-up stage, growth stage, maturity stage and recession stage. Based on the life cycle framework, this paper deeply analyzes the differences and core contradictions of financial characteristics in each stage, and puts forward the adaptive financial strategy model. The results show that the strategy of "low debt, high equity and zero distribution" should be adopted to ensure the survival in the start-up stage; the scale expansion should be supported by equity-debt financing in the growth stage; the endogenous financing and high cash dividend should be used to balance the shareholder return in the maturity stage; the transformation should be realized by asset divestiture and strategic restructuring in the recession stage. The research value lies in the construction of the three-dimensional linkage mechanism of "financing-investment-allocation", which provides a theoretical basis for enterprises to dynamically adapt to financial strategies and avoid periodic risks.