Study On The Influence Of Financial Elasticity Of Midea Group On Enterprise Value

China’s economy is currently in the transition period,and enterprises are facing the uncertainty of market and environmental changes.Affected by national policy adjustment,raw material price fluctuations,exchange rate fluctuations and other factors,the future business risks of enterprises may increase,but at the same time,there may be favorable investment opportunities for enterprises.How to enhance the ability of enterprises to cope with the changes of environmental uncertainty and realize the enhancement of enterprise value have become the key problems that enterprises urgently need to solve.And the existence of financial flexibility for the solution to this problem found a breakthrough point Financial elasticity reflects the adaptability of the financial system of an enterprise in the face of changes in the external environment,which can alleviate the impact of adverse environmental changes on the enterprise,and is conducive to the timely use of investment opportunities arising from environmental changes to improve the value of the enterprise Therefore,it is of great significance to pay attention to the financial resilience level of Chinese enterprises and carry out relevant research work to guide enterprises to make reasonable financial decisions and enhance the value of Chinese enterprises.As the pillar of national economy,manufacturing industry is of vital importance to national development.At present,the household appliance industry is the most market-oriented industry in China’s manufacturing industry,and also the industry with the fiercest competition.As a global operation company,Midea group has a leading position in the industry.Its management scale is huge,the influence is widespread,the behavior decision-making has certain benchmark function.Therefore,this paper chooses Midea group as a case to study the impact of its financial elasticity on enterprise value.In this paper,by reviewing the previous research results of scholars on financial elasticity measurement and combining the two methods of selection factor analysis method,analytic hierarchy process(AHP)and coefficient of variation method,the financial elasticity index system is constructed,and the influence of the financial elasticity of Midea group on enterprise value is explored by analyzing the trend of calculation resultsThe research findings are as follows:1.From 2013 to 2017,Midea group has certain financial elasticity,and the overall growth trend is upward with the year;The results of the two methods show the same trend and have the reliability.Comparing the financial elasticity of Midea group with the selected five comparable companies in the industry,its financial elasticity is at a medium level.Ii.2.From 2013 to 2017,the financial elasticity of Midea group has a certain positive impact on enterprise value,and the increase of financial elasticity will lead to the improvement of enterprise value.3.The financial flexibility of Midea Group mainly affects corporate value by reducing the impact of risks on enterprises and improving investment efficiency.As an important resource to be used,financial elasticity affects the value of enterprises Enterprises should pay attention to the functions and functions of their financial resources as reserves in response to environmental changes,and their reasonable reserves are conducive to the improvement of enterprise value.Therefore,put forward some suggestion on elasticity of Midea group financial situation:1.Midea group financial flexibility is in the medium level in the industry,there is still a lot of room for improvement,but the enterprise should be combined with their own situation,the reference industry average financial flexibility,timely adjust,keep financial flexibility in a reasonable range.And we should be aware that financial flexibility is not as high as possible.Only reasonable and effective financial elasticity can contribute to the improvement of enterprise value.2.We should make reasonable use of our financial ability and effectively maintain a moderate financial flexibility to contribute to the improvement of corporate value.Second,maintaining financial flexibility will also bring certain costs.Midea Group needs to weigh the cost and future value,and rationally and effectively reserve financial flexibility according to the characteristics of the enterprise,operating conditions and strategic needs,so as to effectively use financial flexibility.It will bring value to the enterprise and promote sustainable development.