Research On Financial Asset Allocation And Corporate Value Of Listed Manufacturing Companies

In recent years,with the gradual stabilization of the domestic financial order,the profit of the financial industry has increased substantially in the proportion of profits in all industries.As of 2017,in the proportion of profits in all industries has exceeded 50%.At the same time,the shrinking of overseas markets and the weakening of domestic consumption have intensified.Under the motive of capital profit-seeking,manufacturing companies have also explored the allocation of financial assets in order to obtain higher financial returns.According to the CSMAR,the size of financial assets held by non-financial listed companies in China increased from 254.7 billion in 2007 to 160.6 billion in 2016,with an average annual growth rate of 19.4%.Although manufacturing companies have a large amount of financial asset allocation and improved financial returns,China's manufacturing industry still faces problems such as declining corporate value and difficulties in production and operation.It can be seen that the allocation of financial assets has not brought good news to the manufacturing industry.In the same time,the investment of financial assets will inevitably affect the development of other aspects of the enterprise.Based on the above economic background,this paper focuses on the following three aspects:First,the motivation of holding the allocation of financial assets and effect.;Second,the impact of the financial assets allocation of the manufacturing company on the value of the enterprise;Third,the impact of the generation of alternative motives on the value of the enterprise.Case studies are conducted on the micro-mechanism of individual companies through empirical analysis of the macro level of manufacturing and the use of Youngor's financial asset allocation behavior.Through empirical analysis,the following conclusions are drawn at the level of macro manufacturing industry:(1)The allocation of manufacturing financial assets has a significant negative correlation with corporate value,that is,the higher the degree of financial asset allocation,the lower the enterprise value.(2)Analysis of the impact path of the negative effect of enterprise value.The behavior of financial asset allocation is characterized by the substitution effect as the crowding effect,the investment in operating assets and the reduction of operating income.(3)By classifying manufacturing companies based on whether they have alternative motives,they explored companies with alternative motives and strengthened the negative correlation between financial asset allocation and corporate value.Through case analysis,the following conclusions are drawn at the micro-individual level:(1)By analyzing the external and internal aspects of Youngor's financial asset allocation behavior,it can be concluded that the outside world is not optimistic about Youngor's financial investment,and the internal virtual contribution Analysis of profits,crowding out R&D expenditures,crowding out operating income,and not doing business,and analyzing the performance of synergy,Youngor's financial asset allocation reduces corporate value,which is not conducive to the long-term development of the company.(2)Combining the financial asset allocation of Youngor's company,exploring the motivation of financial assets holding,and analyzing the effect on corporate governance,Youngor's financial asset allocation synergy is poor,and through the main business and executive compensation.Analysis shows that it affects the company's operations and brings negative effects.