A Study On The Earnings And Risk Of Overseas Orders Of Listed Companies

In recent years,as the domestic market has become saturated and superfluous,more and more enterprises started to enter overseas markets for international trade.Since "the Belt and Road Initiatives" had been brought forward in 2013s,Chinese enterprises accelerated their overall arrangement the overseas markets.Based on the initiative of "the Belt and Road Initiatives",this essay choose to study the impact of overseas orders on the profits and risks of listed companies,which is helpful for listed companies to understand the advantages and disadvantages of overseas orders and develop their own development strategies.?reduce the relevant business risks for their overseas company.This essay analyzes the current situation?the existing problems and the benefits and risks of gaining the overseas orders for listed companies by means of statistical analysis methods event study and case analysis method.The main contents are as follows:(1)study the initiative of "the Belt and Road Initiatives" and found it had accelerated the pace of developing overseas markets for Chinese listed companies,and overseas orders increased significantly,and most of the cooperated countries are the along country of "the Belt and Road Initiatives",this initiative promoted the participation of major projects in international cooperation for listed companies.(2)Count on overseas orders obtained by listed companies from 2011 to 2016,overseas orders were counted according to the industry category and found what gained the large-scale overseas orders are mostly the state-owned enterprise of construction and manufacture.The construction companies's overseas orders accounte for 69.10%of the total amount of our country,and the manufacturing companies are 26.35%of it.It could tell that the construction industry and manufacturing industry got more benefits than the other industries from the "the Belt and Road Initiatives";According to the statistics of the project-landing country which found the Egypt,Bangladesh,Laos and Pakistan's sum of money of the contract are the highest,they are also the country in "the Belt and Road Initiatives".(3)By studying the impact of overseas orders on the stock price of listed companies,found that the announcement of the overseas order contract would have a positive influence on the stock price of the company and created more value gains from capital market for the shareholders.Then,by comparing the growth rate of overseas sales business,the growth rate of sales revenue and the growth rate of operating profit,which found the expansion of overseas business has a positive contribution to the growth of the company.(4)Select Gezhouba as the representative company,and analyze the gains and risks of obtaining overseas orders,found The Belt and Road Initiatives caused the company's overseas revenue continues to grow.Due to the high asset-liability ratio,is not conducive to the continuous expansion of overseas business.Besides there are exchange rate risk,legal risk,financial risk and political risk in the overseas business for the company.Finally,this essay puts forward the following suggestions:(1)make more researches on international political and economics,choose overseas cooperated countries carefully;(2)combined with the professional financial works to control the exchange rate risks;(3)broaden the financial channels,and strength capital management;(4)strength the awareness of insurance and learn more about overseas insurance products;(5)strengthen legal consciousness and study the legal system of the other party deeply.Through the above suggestions,the listed companies can better cope with the risks and difficulties of the overseas projects from obtaining contract to the completion of the project,and extracted their own model.