Research On Investment Behavior Of Grain And Oil Industry Under The Background Of Excess Production Capacity

There is no denying that the long-term and global overcapacity have become one of the reasons for the slowing global economy development,since the 1990 s, also has been affecting the economy development of our country. Serious overcapacity problem not only cause a vicious market competition, also makes the major ity of business failures, lead to the phenomenon such as low economic benefit. The earliest industry such as photovoltaic, cement, steel, electricity, etc.mainly have overcapacity problem; Today, more and more industries have been involved in the ranks of the excess capacity, the country’s grain and oil industry are also in the excess capacity and caused low profit margins. This study specially selected for the analys is of grain and oil industry overcapacity problems, through a case study of grain and oil enterprises investment behavior, to relieve excess capacity to provide some enlightenment of our country’s grain and oil industry.This paper used theoretical analysis and case study method, taken excess capacity for large research background, analyzed China Agr i-Industries Holdings Limited’s investment behavior’s influence of company’s performance, analyzed the influence of investment situation overview from the enterprise investment behavior, to measure of investment efficiency from the enterprise profitability, market value, financial r isk, etc, so as to further illustrate overcapacity influence on enterprises investment behavior, through theoretical analysis and case study to verify the feasibility and rationality in the practice, then research deeply.Sum up the relevant conclusions of this study, and this research limitat ions and further research Suggestions. Based on the relevant financial indicators analysis of China Agr i-Industries Holdings Limit ed., can see the whole grain and oil industry in the circumstances of excess production capacity, and each investment of China Agri-Industries Holdings Lim ited has failed to bring good profits, a series of excessive investment behavior instead of huge inventories, financial risk, and the lim it of company’s growth..Influenced by the overcapacity background,China Agr i-Industries Holdings Lim ited., want to avoid excess capacity should improve from the following several aspects: first, strengthen the enterprise product innovat ion, improve the core competitiveness, elim inate backward production capacity. Second, the state government should establish and perfect the information disclosure system, in order to let grain and oil industry make the reasonable and efficient industry investors on investment. Third, government’s should strengthen the warning and guiding role of industry capacity, help enterprise to avoid or deal with the shock of overcapacity reasonable.