Analysis On The Economic Consequences Of Guirenniao Capital Operation

In 2014,the State Council issued several opinions on accelerating the development of sports industry and promoting sports consumption,which proposed to actively expand the service supply of sports products and stimulate sports consumption.Since then,sports shoes and clothing enterprises have quickly embarked on the road of capital operation,showing a blowout growth from 2015 to 2017.More and more sports shoes and clothing enterprises have emerged in the game field of capital.They either become hunters in the game field and take the step of M & A,or become prey in the game field and integrated by others.At the end of 2017,with the stricter supervision of China’s monetary policy and tighter financial conditions,many sports shoes and clothing enterprises that are making great efforts in the game field were greatly impacted.At the same time,the failure cases of capital operation in various industries in the A-share market emerged one after another,and the disadvantages of blindly adopting capital operation to seek diversification were also exposed in the public view.This paper selects Guirenniao Co.,Ltd.(hereinafter referred to as "Guirenniao")as the research object,and analyzes the economic consequences of Guirenniao capital operation based on literature research and case study.Based on the literature research method,this paper combs and summarizes the literature of domestic and foreign scholars on capital operation,and sorts out the key concepts and theoretical basis of capital operation and its economic consequences.Using the case study method,firstly,it expounds the management status,ownership structure and controlling shareholders of Guirenniao;Secondly,by analyzing the motivation of capital operation of Guirenniao from outside to inside,the driving factors are mainly attributed to national policy,market competition and value creation;Thirdly,according to the dimension of time,it is divided into three stages:investment planning stage,fund-raising stage and capital operation,and analyzes the specific process of capital operation of Guirenniao in detail;Then,it makes an in-depth analysis of the market response,financial performance and financial risk in different periods of time during the capital operation.In the financial performance analysis,it mainly evaluates its four abilities,and further studies the value of Guirenniao by using the principal component analysis method.It is found that the implementation of capital operation makes the market response weak Poor financial performance and increased financial risk.Finally,it traces the reasons for the failure of Guirenniao capital operation,and finds that the main reasons are the unstable confidence of investors,the "scattered" and "fast" expansion capital operation and the unreasonable financing arrangement.By analyzing the case of Guirenniao capital operation and its actual economic consequences,this paper believes that enterprises should enhance the transparency and credibility of information and stabilize investor confidence when implementing capital operation;We should clarify the expansion direction of capital operation and continuously develop the core competitiveness of enterprises;We should earnestly formulate financing plans and strengthen financial risk prevention and control,hoping to bring practical reference and Enlightenment to other enterprises.