Research On Tobin Q Method For High-tech Enterprise Investment Decision-making

Along with our country to innovation country forward, high-tech enterprisesare becoming more and more popular. The investment decision of enterprises asan important financial management activities, the decision will have a directimpact on the enterprise funds chain whether efficient operation. The high-techenterprises have the characteristics of high financing demand and high risk. Theenterprise needs to do risk evaluation when it makes investment decisions; selectinvestment decision method which is more consistent with the characteristics ofenterprises. At the same time, countries have introduced the corresponding lawsand regulations, combing technology and finance have provided a good financialenvironment for high-tech enterprises, while increasing risk. The high-techenterprises are facing new chances and challenges.This paper is based on the comparative analysis of investment decision-making method, combining the characteristics of high-tech enterprises withTobin Q method to make investment decisions, and using pressure scenario stresstest to make the enterprise investment decision. In applying the Tobin Q methodto make investment decisions, the commonly used treatment method is to usestock instead of enterprise value, while the stock is easily affected by manyfactors, there are certain subjective evaluation of enterprise value. In this paperby Tobin Q method to improve the enterprise value and EVA, through theinherent relation between the measure of enterprise value, and selection of high-tech enterprises is greatly influenced by the project EVA adjustment, themeasurement result to be more valuable, more conducive to long-termdevelopment of enterprises strategy. On this basis, we use Tobin Q method modelto make investment decision. The current state of high-tech enterprise’s financialsupport, technology and financial combined with the increasingly closer, aimedat high-tech enterprises financial environment stress test, decision-making toinvestment results further decision, greatly reduce the risk of enterprises. Taking DF as the example, prove the feasibility of the method. This research may lead todecision makers from short-term decision factors, more conducive to the long-term development of enterprises. And the data is on the basis of financial report,more rational decision-making. The study of high-tech enterprise investmentdecision-making method provides a new way of thinking, is advantageous for theenterprise to reduce risk, decision results more in line with business goals.