Research On The Investment Behavior Of QinSongJianHua In The Background Of Overcapacity

Overinvestment leads to excess capacity.Excess capacity will lead to demand outstripping supply,inventory overhang and profits falling.When the situation is serious,the company’s losses are increasing,which may lead to more serious financial risks and higher unemployment.Severe overcapacity will affect the development of the whole society,disrupt the market economy,and even lead to financial crisis.In our traditional industry,we have a problem of overcapacity,like cement,electrolytic aluminum,steel and so on.And the problem has been extended to solar,nuclear,wind and other emerging industries.Overcapacity is becoming a prominent contradiction in China’s economic operation and the root of many problems.How to solve the problem of overcapacity is imminent.Since 1994,the cement industry has had overcapacity problems.The government has introduced a series of policies to tackle overcapacity in the cement industry,but with little effect.The current overcapacity situation in the cement industry is becoming more and more serious,which requires us to further explore,so as to provide corresponding suggestions for effectively alleviating overcapacity in the cement industry.Investment behavior of Qingsongjianhua was study by that methods of literature research,theoretical analysis and case analysis,so as to effectively solve the problem of overcapacity.Through analysis,we found that:First,The over-investment behavior in the context of overcapacity has led to a decline in the inventory,cash shortage,corporate profitability and solvency of enterprises,which has resulted in increased financial risks and weakened the long-term development ability of enterprises.Second,There are many reasons why companies still overinvest in excess capacity.The main reasons are as follows: unreasonable internal governance structure of the company,lack of external creditor governance,unreasonable performance assessment measures set by local SASAC,and local government intervention;Thirdly,From the perspective of enterprises,it is necessary to further improve the internal governance structure of the company,strengthen the debt management of creditors,strengthen international cooperation.From the perspective of government,it is necessary to deepen reform of the performance appraisal system of corporate leaders,reduce the degree of government intervention of local governments,formulate industrial policies,and make rational use of supply-side reform.