Research On The Relationship Between Inventory Dependence And Enterprise Investment

Inventory Dependence refers to the preference choice of two production factors,Inventory investment and fixed assets,when enterprises make investment choices.To some extent,the degree of inventory dependence reflects the current investment preference and operation status of enterprises.Moreover,as an essential factor in the production process of enterprises,inventory ratio and inventory dependence degree are particularly important for the production and operation decisions of enterprises.Based on the theories of inventory and combining the research results of existing inventory and enterprise investment decision,this paper deduces the hypothetical theoretical relationship between inventory dependence and enterprise investment.The main research results are as follows:The relationship between inventory dependence and enterprise investment is proposed.This paper analyzes the existing theories of inventory and investment,and puts forward three corollaries of enterprise investment: namely,the existence of substitutability of two production factors,fixed assets and inventory;There are differences in unit adjustment cost between fixed assets and inventory.A firm's inventory depends on decisions that affect its investment.Based on the above three inferences,the hypothesis of this paper is proposed,that is,the inventory dependence caused by the cost adjustment difference of production factors and substitutability weakens the response of new fixed investment to the state variable index of enterprise profitability.The investment theory modeling of different inventory dependent enterprises is carried out.Based on economic theory and inventory theory,etc.,on inventory investment and dynamic programming model of the investment in fixed assets,use of Matlab simulation,set up different inventory and fixed assets of alternative values,namely the different inventory dependence,at the same time guarantee the enterprise in each round of dynamic programming optimal choice,got each issue enterprise optimal investment choice as a result,to verify the hypothesis,this paper adjust production factor cost differences and alternative inventory,making new fixed investment response to corporate profitability indicators of state variables.Empirical studies on different inventory dependent enterprises are conducted.Using the data of 864 enterprises in the Wind database from 2004 to 2018,the inventory dependence degree(NDEP)of enterprises was measured.The inventory dependency measure value is marked as NDEP in this article.The sample enterprises were divided into two parts,namely high NDEP and low NDEP.Empirical results verify the above hypothesis.Moreover,the empirical robustness analysis is carried out in this paper,and the results show that for enterprises with strong inventory dependence,their new fixed asset investment has a weaker response to corporate profit variables.This paper summarizes the influence mechanism and results of inventory dependence on investment choice,and puts forward relevant research Suggestions.