Correlation Research Between The Growth And Values Of Chinese Medicine Listed Companies

As one of the policy-driven industries,the development trend of Chinese medicine industry is the focus of management and investors.Growth illustrates the growth ability of companies,and it measures the development of enterprises.It is not only the main reference for investors to choose the object of investment,but also an important analytical factor in the capital operation of investment institutions.Known the company's growth is also conducive to the assessment agencies' work,and provides an important reference for managers,investors,government and other subjects.Taken the income method as an example,the enterprise value is the discount of the net cash flow.Therefore,the level of income and profit are the most direct factors that affect the enterprise value.Analyzing the growth of the industry and the enterprise is necessary.The growth drivers are different in different stages of growth and different industries.With a comprehensive grasp of the growth characteristics of industries and enterprises,the valuation process can be more effective."Chinese Medicine Law" was enacted in 2016.In this context,the article studies relevant literature and empirical results to analyze the influencing factors of the growth of Chinese medicine enterprises,explores the factors that affect the growth of Chinese medicine enterprises.In the core part of the article,combined with the method of factor analysis,we construct an index system suitable for the growth evaluation of Chinese medicine listed companies from the financial aspect.We link this indicator system to the value of Chinese medicine companies to put forward research hypotheses regarding the correlation between the growth of enterprises and the value of companies.Design the specific study plan.We take the main factor score as the explanatory variable and the Tobin Q to represent the corporate value as the explanatory variable to build a regression model to validate the hypothesis established from an empirical perspective.The empirical results about the 55 Chinese medicine enterprises show that the value of Chinese medicine listed companies is positively correlated with the score of “debt paying level” factor that measures growth,negatively correlated with the score of “scale level” factor,and positively correlated with the score of “management level” factor.