Analysis On The Motivation And Effect Of Youngor Group's Equity Investment

Youngor was originally a garment industry as the main business of production and operation of enterprises,in the economic trend to seek development to carry out a diversified business model,among which the equity investment plate is eye-catching.This makes youngor deviate from the main business,and how its motive and effect attract scholars' attention.This paper mainly uses case analysis to discuss the motivation and effect of youngor's equity investment.First,it discusses the motivation of equity investment from the perspectives of strategy,performance and earnings management,and sorts out and summarizes the scale and return of equity investment of youngor group.Secondly,it still analyzes its effect after implementing the diversified operation strategy of equity investment from the above three perspectives,and mainly conducts a vertical and horizontal comparative analysis.The research results that the equity investment of youngor has a significant impact on its development strategy,and also brings some economic benefits to it,especially in the expansion of business scale.However,there are still many problems in the process of equity investment,mainly reflected in the decline of profitability of the clothing industry,and the great instability of the return of equity investment,which leads to the obvious problem of using equity investment for earnings management.Finally,some countermeasures and Suggestions are put forward.