Study On The Evaluation Of China's Agricultural Enterprises

With Mergers and Acquisitions activities occurring in the enterprises more frequently, study on the theorists of enterprise value and its assessment sets off waves constantly during corporate financial management. And the researchers found achieving rapid development of enterprises not only depends on the optimal allocation of corporate resources in today's society, but also can take some other way, for example corporate mergers, restructuring, asset sales and equity investment. And the fact proves that the latter is more effective than the former. At present the development of agricultural enterprises is in a relatively awkward position, manifested in small size, lack of competitiveness, low management level and low capacity of enterprises operation, and China's agricultural enterprises bearing considerable social responsibility are also facing fierce market competition. So economic pressures and social responsibility force the enterprises to have to seek a way out, which needs advanced management besides science and technology innovation. Based on this purpose, the paper explores the enterprise value and its assessment in order to understand and rich agricultural enterprise management theory, and ultimately hopes to promote the development of agricultural enterprises.This article reviews the literature on enterprise valuation method firstly, which founds the current system of enterprise value evaluation is not perfect, and the theory on agricultural enterprise valuation is still needed to further research and development. Secondly the basic theory of enterprise valuation is elaborated, mainly including defining the enterprise value; describing the main content of enterprise valuation method involved with Cost Approach, Market Approach and Income Approach; detailed analyzing the four stages of the theory of Enterprise Lifecycle recognized in this paper, namely start-up, growth, maturity and diversification; analyzing agricultural enterprises and the influencing factors of their value, mainly including analysis of characteristics and scope of the agricultural enterprises, and elaborating three special factors of enterprise value, namely the unique natural resource endowments, land and other policies, which is how to impact on enterprise value. Thirdly exploring the construction of agricultural enterprise valuation system, on the basis of analyzing the affecting factors of agricultural enterprise value, and using sales trend analysis and classification combination method of cash flow to identify the life cycle of agricultural enterprise, analyzing the enterprise evaluation methods applicable to various life cycle of agricultural enterprise, and modified it; generally speaking, start-up stage is suitable for using Option Pricing and Cost Approach, growth stage is suitable for using Economic Value Added and Option Pricing, maturity stage is suitable for using Discounted Cash Flow and Market Approach, and diversified stage is suitable for using what depends on the development situation of enterprises, which is Cost Approach or Option Pricing but they can not coexist. Then the evaluation effect of the agricultural enterprise value is discussed. Fourthly according the above discussed construction of agricultural enterprise valuation system, Long Ping High-Tech is conducted as a case study, which results show Long Ping High-Tech's stock market price is low and its value is affected seriously by policy factors mainly reflected in terms of tax incentives. Fifthly the main conclusions of agricultural enterprise valuation system is elaborated, and specifically, the value of agricultural enterprises is affected by policy factors; specifically on the one hand agricultural enterprises will be subject to the policy support in long-term, on the other hand the value of agricultural enterprises is affected seriously by policy factors; and from the perspective of their own development, the value of agricultural enterprises is inflated undoubtedly, which affects enterprises, others'units and individuals to judge this situation, prevents enterprise decisions, chokes of enterprise endogenous development, and is not conducive to continuing to enhance enterprise value.