Industrial Policy,Enterprise's Over-investment And Financial Distress

With the quick development of China's economy,China has become a country with a big energy consumption,excessive consumption of non-renewable energy poses a threat to the ecological environment.With the accelerated development of heavy chemical industry,energy consumption increased rapidly,coal consumption doubled.In 2015,the state put forward the concept of "supply side reform",which is the important policy focus of our country's "innovation,coordination,green,open and shared"development concept during the 13th Five-Year Plan period.The state actively build energy-saving industries System and clean low-carbon,safe and efficient modern energy system to resolve excess capacity and other issues and adapt to the new normal energy infrastructure system.In addition,the rapid economic growth depends on the growth of investment.There are a lot of over-investment in iron steel and other traditional industries caused by overcapacity problems.People gradually focus on investment in emerging industries.Among them,photovoltaic industry develops quickly,and many photovoltaic enterprises listed on domestic and foreign stock exchanges,increasing investment,expanding the scale of enterprises.However,some of the emerging industry research shows there are also investment overheating,overcapacity phenomenon in the emerging energy industry?Not only that,some leading enterprises have emerged insolvency,debt default and so on.Therefore,it is very important to study the mechanism of financial distress in the photovoltaic industry and analyze the influence of enterprise investment on financial situation under the background of industrial policy.In this paper,through literature research,empirical study method,case method and other research methods,with eight photovoltaic enterprises listed in the U.S.as sample,yingli green energy,for example,to study the effect of the industrial policy of excessive investment,how to cause the financial distress and excessive investment.Chapter 1 of this article is about the introduction,which mainly introduces the selected topic background,the topic significance,the research method and research framework,and put forward the innovation points.Chapter 2 is theoretical basis and literature review.The chapter defines the concept of key words,puts forward the corresponding theoretical basis,summarizes the existing literature on two levels,and briefly reviews.Chapter 3 is about the present situation analysis of the photovoltaic industry and the state policy now.Taking the eight large domestic photovoltaic companies as an example,the chapter analyzes the listing and investment situation,their financial and operational performance.It puts forward the reason of choosing Yingli Green Energy as the case.Chapter 4 is Yingli Green Energy case description.This chapter introduces the development of Yingli Green Energy,carding enterprise investment situation.We measure the enterprise operating performance through the debt paying ability and profit ability,measure the market performance of the enterprise through the market value.Chapter 5 is the case analysis of Yingli Green Energy.The main analysis is about the causes of financial difficulties.It analyzes the relationship of industry policy,enterprise excessive investment and financial distress.Chapter 6 is conclusion and prospect.This chapter puts forward case study conclusion.Then it puts forward lessons and limitations of this thesis research,finally puts forward the future outlook from two aspects of government and enterprises.The contribution of this paper is that the macro industry policy and microcosmic enterprise financial difficulties,and the combination of enterprise behavior factors,using the specific case,to the enterprise financial difficulties analysis framework,which has the certain innovation and popularization.It has a practical significance to study the financial situation of the enterprise,especially ones in emerging industries.