Research On Corporate Value From The Perspective Of Supply-side Structural Reform

The high economic growth rate in the past 10 years in China has masked many distorted non-market behaviors and has caused backward production capacity to breathe.Our country's economy is currently facing structural overcapacity and a "supply failure." In particular,China's iron and steel,coal,cement,glass,petrochemical,and non-ferrous metals,and other major industries,the loss has reached 80%,the industry's profits fell sharply,a serious excess production capacity.Structural reform on the supply side as one of China's key economic tasks continued to advance.The Central Financial Leading Group held in November 2015 for the first time proposed “Strengthening supply-side structural reforms” and the “13th Five-Year Plan” will provide structural structural reform on the supply side.As the main line,the party's Nineteenth Congress once again stressed that the implementation of a new development concept and the construction of a modern economic system should be based on supplyside structural reforms as the main line.Yunnan Province possesses a certain scale of mineral resources reserves of various scales,especially in non-ferrous metals and nonmetallic minerals.Yunnan's heavy chemical industry is one of the earliest modern industries in Yunnan.It has a long historical heritage and has been extensively formed for a long time.Under the inertia of development,serious overcapacity has been formed,the debt ratio remains high,the asset operating rate is low,and the development structure is seriously out of balance.In the past two years,Yunnan Province has achieved significant progress for the five major players through "three visits,one supplement,and one drop."From the perspective of supply-side structural reforms,this paper considers the company's value in the economic and social macro-environment,tries to demonstrate the impact of supply-side structural reforms on the company's value,and analyzes and demonstrates the case based on Tin Industry's shares.First of all,this article introduces the background of the topic,the significance of the study and the research ideas in the introduction.Second,by reviewing the development history of the "supply school" school of economics at home and abroad,we summarized academic criticism and the gains and losses of theory and practice,and explored the "new supply science" rooted in Chinese practice.This paper expounds the author's understanding of the arguments of new supply economics.With the aid of literature and related theories,it combs the theoretical research on the influence of supply-side structural reforms on company value and opens up the research perspective.Again,the author took tin industry stocks as an example.After analyzing the company's situation through SWOT,through the specific analysis of the company's supply side structural reform measures and its effectiveness,the use of financial statement analysis and company value assessment,the supply-side structural The reform has increased the value of the company.At present,the company's tin inventory is at a low level,the inventory consumption rate is also at a historically low level,the capital structure has been significantly optimized,the competitiveness of enterprises has been continuously enhanced,and the company's ability for continuous development has been significantly enhanced.However,the non-ferrous metals industry is affected by the cyclical market.De-capacity and destocking are still a gradual process.Tin Industry's capacity contraction has yet to truly reach the turning point in reversing the pattern of supply and demand.The elimination of excess capacity will take time,both in the market and in administrative measures.There are still many deficiencies in the tin-structured reform of the tin-supply side,relying on Hualian zinc indium to provide performance support,and reducing the capacity to supplement short-boards should also be strengthened.Finally,the study found that structural reforms on the supply side have further established the market position of enterprises and enabled them to make more use of market-based public safety measures to carry out various tasks.The supply-side structural reforms have promoted the improvement of supply and demand structure and the recovery of corporate profits,and strengthened the company's "metabolic" mechanism and market resource allocation function.By "dropping leverage" to optimize the company's capital structure.Through "destocking" to effectively change supply,from the perspective of asset allocation,"destocking" effective resource allocation can improve the company's value,inventory can not bring value to the company,inventory is the company's resources and capital,excessive inventory leads to the company The cost of capital rises,damaging the company's value.The meaning of "capacity removal" From the perspective of economies of scale,the larger the scale,the lower the unit cost,but not the bigger the better,the larger the scale is the larger output value,not the large capacity,and the production capacity exceeding the output value will lead to the diseconomies of scale and the efficiency of the investment.Look,this is a transitional investment that will hurt the value of the company.High costs will reduce the company's free cash flow,leading to a reduction in the value of the company.From the point of view of the company's management and management innovation,"complementing the short board" can enhance the company's value.Combined with relevant financial theory,supply-side structural reforms can have a positive impact on corporate value.In addition,the author proposes corresponding improvement plans for the problems of supply side reform and the value of tin stock company,hoping that tin industry shares will continue to develop healthily.