Issues and Optimization Strategies in Corporate Investment and Financing Decisions

DOI: https://doi.org/10.62517/jtm.202413101

Author(s)

Shaofeng Shen*

Affiliation(s)

School of Finance and Economics, Hunan University Of Technology and Business, Changsha, Hunan, China * Corresponding Author

Abstract

Since the beginning of the reform and opening-up policy, China has witnessed the emergence of numerous outstanding small and medium-sized enterprises (SMEs). However, these enterprises have been confronted with difficulties in making investment and financing decisions. In order to achieve sustained and healthy development, it is essential to address the challenges pertaining to investment and financing in enterprises. This paper provides an overview of the concept of corporate investment and financing, identifies four key issues in the current landscape, namely information asymmetry, lack of risk prevention capabilities, limited investment and financing channels, and inadequate management mechanisms. The causes and consequences of these issues are analyzed, and corresponding optimization strategies are proposed from both government and enterprise perspectives to enhance the accuracy and scientificity of investment and financing decision-making.

Keywords

Corporate investment; Corporate Financing; Investment and Financing Challenges; Optimization Strategies

References

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