The Research Of Tv & Broadcast Intermediary's Value

With China's entry into WTO. the pace of industrialization and opening to the outside world will be further quickened in the field of media industry in China. The capital power of the media companies being decisive in the allocation, utilization and effective realization of the media resources and being vital to the control of channels, the winning over the contests of the advertisement sources and the digging of its own management potentials as well, the importance of the capacity to use capital and to manage value is greatly highlighted among the components of core competitive power in the press media.The value of a company depends on various factors such as the company's surroundings, resources and its capacity to use the resources. Only by having all-round and clear idea of the company's value can its development strategies be properly constituted and its resources be effectively used in the competition among tomorrow's media.A study on the value of the company comprises two aspects: first, evaluating its prospect by making use of its legal and open information (mainly its financial report): second, evaluating its capital cost in the stock market and hence judging the range of its share price concerning the prospect of the company. Using a series of models of valuation of the company value by way of the data of the company's financial accounts and its forecast, this thesis intends to obtain the range of the relatively effective value of the company. Meanwhile, integrating with the fixed capital price of the stock market, this thesis also intends to find out the value of the company and their differences, and hence judge its present capacity to create value.In the study, it is discovered that, as the first marketed media enterprise in China, the Television and Broadcasting Media Company is undoubtedly worth praising in terms of the operation of its capital financing market, but it is far from being satisfactory in terms of its performance in the field of investment. Considerable investment items can not bring about the increase of the cash flow, but cause the quality decline of its financial index as result of its licking up of the achievements created by its main operation. Hence, the company's capacity to manage its operation and to make profits is anything but allowing bright prospect. Based on the evaluation results of the future value of the company which is fundamentally by far smaller thanthe present account value and market value of the company, it is concluded that the present operation of the Television and Broadcasting Media Company is doing harm to the value of the company.Using Professor Zhang Ling's Evaluation Model of Financial Distress Diagnosis, this study draws a similar conclusion: the Television and Broadcasting Media Company is faced with rather severe financial risks and it is urgent to improve its financial conditions.On the basis of the research on the investment items of the company by way of the matrix of financial strategies, some suggestions are put forward for the value creation of the company, with the hope of helping the administrators in their decision-making about the value creation and hence making more rational capitalization operations of the media.