The Research On The Effects Of Raw Material Price Fluctuation On The Industry Chain Related Enterprise Financial Performance

Cotton is an important economic crops in our country, occupies a very important position in the first industry in our country. As the growing of economic strength of our country, the continuous improvement of the cotton industry chain has become the research focus of China’s agriculture. This paper mainly studies the volatility of the cotton price has a certain influence on the enterprise benefit of related industries of the cotton industry chain. Cotton industry chain in China have the characteristics of long chain, the cotton industry chain upstream, cotton farmers and enterprises are planting cotton; the middle cotton industry chain, Cotton processing and circulation enterprises ensure the supply of raw materials to the downstream of the cotton industry chain; Cotton industry chain downstream, textiles and the clothing industry produce the final product,such as the production of textiles,clothing, etc. Based on the research of the cotton industry chain in this paper,and from the perspective of enterprise management, the fluctuation of raw material price has an effect on the enterprise’s business performance.Before the year of 2010, cotton prices have been at a relatively stable level, however, since the second half of 2010, cotton prices appeared more substantial fluctuations, which made an great influence on the enterprise operating performance of every link of the the cotton industry chain. Therefore,the study that the volatility of cotton price makes an influence on the industrial chain related enterprise financial performance, and on how to influence the financial performance of listed companies in different industrial chain link, which will has a significant practical significance to promote the healthy development of the cotton industry chain in China in the long term.At first, this paper analyzes the current situation of the development of cotton industry chain and its characteristics, the cotton price volatility and its influencing factors, and the profit of listed companies of cotton industry chain related industries in China. Secondly, focus on Du Pont analysis system, respectively from the four aspects respectively that the enterprise debt paying ability, operation ability, profitability and development capacity, to select two financial indicators respectively which Constitute the financial performance evaluation system of relevant enterprises in the industry, and plan to investigate the influence of cotton price fluctuations on the financial performance of three kinds of related businesses of the industrial chain which namely cotton cultivation of enterprises, textile and clothing trade enterprises,from the four aspects respectively.Then the influence of the empirical model is established by regression analysis,and the conclusion is made. Finally, make a conclusion and put forward the measures about the related businesses cope with fluctuations in prices in the cotton industry chain.This paper constructively starting from four dimensions which including the debt paying ability, operation ability, profit ability and development ability.And then made an use of the innovative use of multiple regression analysis tool, established the empirical model about the cotton price fluctuations affect industrial chain related financial performance of listed companies, made an analysis on the cotton price fluctuation affect the financial performance of the cotton industry, textile and clothing industry enterprise of cotton industry chain respectively.In the end, the final conclusion will have a strong theoretical and practical significance for the subsequent research.