Research On The Impact Of Dynamic Industrial Policy On Corporate Financial Crisis

In 2014,Lin yifu and zhang weiying had a protracted debate on whether industrial policy should interfere with the operation of enterprises.Zhang weiying believes that the development of enterprises should not be interfered by the government and should be decided by free competition among enterprises.The heated debate between the two men brought the influence of industrial policy on enterprises back into people’s thinking scope.In 2015,China put forward supply-side reform,carried out structural adjustment for related industries in China,and promulgated a series of industrial policies.Chinese enterprises are inevitably affected by industrial policies.As a favorable regulatory tool of the Chinese government,scholars have not reached a consensus on whether the industrial policy has a negative or positive effect on enterprises.Previous studies only studied the effect of the promulgation of relevant industrial policies on enterprise value.Few scholars divided the industrial policies according to their time evolution and analyzed their value effects on enterprises in different periods.Enterprises are the main participants of market economy activities,and their daily production and operation activities cannot be separated from the external environment.According to the influence of industrial policy on enterprises,this paper divides industrial policy into encouraging industrial policy and restrictive industrial policy by nature.The encouraging industrial policy can guide enterprises to expand their scale by providing convenience and financial subsidies.Restrictive industrial policies can compress the living environment of enterprises,intensify the competition among enterprises,and limit the expansion scale of enterprises by restricting the threshold of enterprise entry and raising product requirements.These two industrial policies of different nature will affect the operation behavior of enterprises,affect the strategy formulation of enterprises,and then affect the realization of enterprise value.Based on the corporate strategy and basic resource view in the financial crisis theory,this paper studies the impact of dynamic industrial policy on the financial crisis of enterprises,and clarifies the formation mechanism of financial crisis under the influence of dynamic industrial policy.Based on the above background,the main research purpose of this paper is: based on the temporal evolution of dynamic industrial policy,to explore the different strategic performance of enterprises under different industrial policies in different periods and the impact of different strategies on enterprise performance,and to clarify how enterprises fall into financial crisis under the influence of dynamic industrial policy.Based on the above problems,this paper builds a theoretical framework by reading the literature published by predecessors and relevant theories: enterprises make different strategic decisions according to the changes of dynamic industrial policies.If the strategic types do not match the basic resources and external environment of enterprises,enterprises are prone to fall into financial crisis.To industrial policy impact analysis framework to provide theoretical support of enterprise financial crisis,this paper builds a theory model: dynamic through industrial policy will support the industry development,create a good market environment,to induce enterprises to expand investment,seizes the market,make the enterprise take the offensive strategy,if the enterprise strategic behavior radical,can make the enterprises on the basis of resource excessive consumption,if the industrial policy from encouraging to limit,market environment deteriorating,the enterprise strategy and enterprise resources and the external environment is difficult to match,will push up the financial crisis risk of the enterprise;Dynamic industrial policy by limiting the industry development,the market environment deterioration,forcing companies to adopt defensive strategy,guard the existing market,improve product quality and service efficiency,if the enterprise is too conservative,when industrial policy to encourage enterprises to develop new products and new market and compete with other enterprises,the market environment is superior but their own basic resources cannot be improved,make the enterprise strategy and enterprise basic resources and market environment can’t match,which would push up the enterprise’s financial crisis.By discussing that dynamic is industrial policy by influencing the enterprise investment behavior,behavior,conduct research and development,and financing activities such as transmission path to influence enterprise financial crisis,by analyzing the case of goldwind,sinovel theory model: under the encouraging industrial policies to guide case enterprises to make investment expansion,increase r&d investment,expanding the production and business operation behavior such as offensive strategy,make the change case their own basic resources sinovel more radical strategic behavior,does not accumulate to the rich resources,the basis of goldwind is relatively stable,accumulated a good basic resources.When the industrial policy changed from encouraging to restrictive,the market environment deteriorated,sinovel wind power still adopted the offensive strategy,its basic resources were rapidly consumed,goldwind technology turned to defensive strategy,and its basic resources were slowly consumed.Sinovel wind power enterprise strategy and the enterprise’s own basic resources and external environment is difficult to match,the financial crisis will eventually occur;If the enterprise strategy of goldwind is matched with the basic resources and the market environment,the enterprise can survive the impact smoothly.To sum up,this paper draws the following conclusions: industrial policy will guide enterprises to choose offensive strategies by providing favorable conditions,so that enterprises can expand investment scale and seize market share;When the industrial policy changes,if the strategic decision,the basic resources and the external environment cannot match in time,the enterprise will be in financial crisis risk.The research results of this paper will enrich the literature related to the formation mechanism of financial crisis and provide useful Suggestions for the listed companies affected by industrial policies to prevent financial crisis.