Research On The Impact Of Fixed Assets Investment On Corporate Performance Based On Economic Cycle

Chemical industry includes agricultural chemical industry,petrochemical industry,chemical and pharmaceutical industry and so on,which makes chemical industry the basic industry and the pillar of economic of many countries including China.The speed of chemical industry development and the scale of enterprises will have a significant impact on social economy.The investment of fixed assets runs through the whole process of the business of chemical industry enterprises,and has a significant impact on the company performance of chemical industry enterprises.The operation efficiency of chemical industry enterprises can be effectively improved through advanced fixed assets investment concepts and methods.With the continuous progress of reform and opening-up,Chinese enterprises are gradually able to make decisions independently.However,due to the short development time of China's chemical industry,the ability of independent decision-making of enterprises is still far behind that of Westerm countries.Because corporate performance is influenced by both intermal and extermal environment of the enterprise,this paper brings the economic cycle,fixed assets investment and corporate performance into a unified analysis framework through case study to analyze their interaction mechanism,which has important practical significance for enterprises to make reasonable fixed assets investment.Based on the importance of chemical industry to national economy,after summarizing domestic and foreign literature and analyzing the current situation of xed assets in chemical industry,this paper makes a deep study on the impact of different fixed assets investment on the company's performance in four cases of chemical industry in different economic cycles,with a view to finding out a reasonable fixed assets investment resolution,so as to reduce the impact of different fixed assets investment on the company's performance.Low cost and productivity are the means to improve the total value of enterprises.Analyzing and studying the four selected chemical enterprises and the impact of fixed assets investment measures on company performance at different stages of the economic cycle was discussed in depth,and a conclusion was drawn.The study shows that after accurate prediction on die market,when in the stage of economic expansion,chemical industry enterprises invest in fixed assets that can reduce production costs or expand the production capacity of enterprises can improve company performance.In the economic recession,if chemical industry enterprises can activate the market,then investment in fixed assets that can expand the production capacity of enterprises can slightly improve the company's performance,or investment in fixed assets that can reduce production costs,the company's performance can be slightly improved.Based on the economic cycle and case analysis,this paper puts forward some suggestions on how to invest in fixed assets in order to improve the performance of chemical industry enterprises,and provides ideas for enterprises to make decisions.