Study On The Influence Of Hengrui Medicine's Financial Flexibility On Enterprise Value

The promotion of enterprise value is one of the main tasks for the development of Chinese enterprises under the current economic environment in transition.The realization of enterprise value depends on the rational allocation and utilization of financial resources.Under this demand,financial flexibility emerges as The Times require.Financial flexibility is the ability to dynamically adjust an enterprise's financial resources.The enterprise maintains certain financial flexibility can effectively deal with the unexpected financial risks and grasp the favorable investment in time.Compared with other enterprises,the r&d investment and daily production and operation activities of innovative pharmaceutical enterprises involve a large amount of capital operation,which requires the rational allocation of existing financial resources.Hengrui pharmaceutical is a representative innovative pharmaceutical company,which has carried out large-scale r&d innovation and international layout in the early stage,and successfully transformed itself from relying solely on generic drugs to independent r&d of innovative drugs.Although the international big pharmaceutical companies take the innovation medicine market because of its various advantages,but hengrui pharmaceutical development in adversity,timely grasp health policy change,actively explore overseas markets,by keeping a certain financial flexibility to cope with the increasingly changing external environment,effectively cope with the anticipated the impact of the changing market conditions,to promote enterprise value rising.Therefore,the reserve of enterprise financial flexibility is of vital significance to the promotion of enterprise value.This paper takes hengrui pharmaceutical,which is listed on gem,as an example to discuss the influence of hengrui pharmaceutical's financial flexibility on enterprise value.When measuring the value of hengrui pharmaceutical enterprise,this paper adopts two index systems,one is the market value of the enterprise,the other is the financial value of the enterprise.The market value was quantified by Tobin's Q value,and the financial value was quantified by selecting 12 financial indicators and analyzed with principal component analysis method.The comprehensive score F of the financial value was obtained through calculation.Descriptive statistical analysis,correlation analysis and regression analysis were performed on the data of hengrui pharmaceutical for the half-year period from 2000 to 2018.The results show that the financial flexibility of hengrui medicine is positively correlated with the market value of the enterprise,and the financial flexibility of hengrui medicine is positively correlated with the financial value of the enterprise.Based on the case study of hengrui pharmaceutical,this paper believes that maintaining reasonable financial flexibility can improve enterprise value,and the financial strategies of enterprises can be dynamically adjusted by increasing cash holdings,retaining residual borrowing capacity and increasing r&d investment.Finally,this paper combines the conclusions with the actual situation and puts forward some Suggestions,hoping to provide some useful Suggestions for the development of pharmaceutical enterprises.