Study On The Problems About Long-term Investment Decision-making Of LeEco

The prosperity of the market economy brings more investment enthusiasm to the enterprises,but there are also investment risks.Therefore,the enterprise’s long-term investment decisions determine the fate of the enterprise.However,due to be lack of consideration and exist mistakes,resulting in the enterprise into a difficult situation frequently.This paper selected LeEco,which has developed rapidly in recent years,as a case company to study and conduct a detailed study.Now it is in the industry wave of online media and experiencing the re-merger,more and more attention paid by the academic community to LeEco about its action of trying to build an ecological circle as an innovative development model,but the innovation and the problem is coexisting,this article will analyze long-term investment decision-making about LeEco,which is based on current situation of LeEco in recent years.First of all,this paper puts forward the background and significance of long-term investment decision-making,and analyzes the relevant literatures of long-term investment decision-making at home and abroad,such as the time value of money,the risk of long-term investment decision-making.The evaluation method of long-term investment decision-making and the reasons leading to the long-term investment decision-making mistakes,and summarizes the main contents and research methods.Secondly,this paper starts from the basic theory,defines the concept of investment and the concept of investment decision respectively;expounds the importance of time value theory of money in considering long-term investment problem;information asymmetry brings enterprise to long-term investment decision Investment risk;principal-agent problem in the principal and the agent because of different interests and contradictions exist,thus affecting the enterprise’s investment decisions;attention to the use of human capital in the enterprise,so that business operators can put into the enterprise’s sustainability development more effectively.Thirdly,this paper makes a brief introduction to LeEco,and evaluates the long-term investment decisions about DS,VIZIO and Flower Television,respectively,using the current method,net present value method and internal rate of return method.Briefly analyzes the reasons for making the decision,and combined with the objective conditions of LeEco as the author’s subjective perspective analysis.In the end,this paper summarizes the three major aspects of the existing acquisition of R & D,the diversification of layout and the unscientific aspects of decision-making,and analyzes the reasons.The reason for this is that we should strengthen the research and development of core technology,abandoning the construction of the ecosystem and strengthening the core business development proposals temporarily.At the end of this paper,the author summarizes the research of this topic,and points out the shortcomings of the research and the direction of future research.