An Analysis On Corporation Business Performance Based On The Uncertain Price

The paper aimed at price indices and corporation business performance, took the inflation theory as the instruction,took the development situation of China's papermaking industry as background, analysed the statistical nature of price indices which related with the papermaking industry during the past 20 years. Then the paper analysed the business performance of three listed papermaking companies,revealed the influence to enterprises which brought by price fluctuating.It tried to provide the theory basis on financial controlling and formulating strategies.The result of analysis revealed that each kind of price index presented a trend of rising during 1999 to 2009, and the price indices of papermaking industry are lower than that of general industry; The price indices rised more quickly during the previous 10 years than that during the latter 10 years,and so as its fluctuation rate. On this basis,the paper established the theory framework of evaluation of corporation business perfomance:How did price fluctuating influence the corporation business performance,the results of twisting to the corporation business performance that brought by price fluctuating and the contents and methods of analysing the corporation business performance.Through a positive analysis, we get such conclusions as follows:The smaller the enterprise is,the more serious influence it will suffering from the price fluctuating.It means that the bigger company will suffer lower risk in the market as the price changes frequently;And they were all influenced more seriously by the price indices of general industry than that influenced by the price indices of papermaking industry.According to the anlysis of the results,eventually the paper gave seveal suggestions on how to prevent price risk to the papermaking companies,which should expand the material channel, use stock hedge,sign a long-term strategy cooperative agreement with suppliers,and change the method of inventory. Besides that,the enterprises should choose the appropriate accounting to eliminate the influence of inflation which brings to the accounting information,and prevent the accounting information users from making wrong desions.