A Study Of Corporate Expansion And Financial Crisis Under Industrial Policy

Macroeconomic policy is the guiding principle and measure formulated by the government to solve economic problems in order to adjust the economic structure,promote the development of economic market and achieve the purpose of macro-control.Based on the basic national conditions of our country,the orderly development of economic market can not be separated from government intervention.As the carrier of macro economy,enterprises will inevitably be affected by industrial policy.For enterprises,industrial policy,on the one hand,can provide convenience to enterprises through policy subsidies,tax concessions,and reduce loan interest rates,and support enterprises to rapidly increase their market share and expand their scale in the field of support.On the other hand,industrial policy guides enterprises into emerging industries,which means that enterprises will face more unknown risks and increase their operating risks.In general,industrial policy brings opportunities to enterprises,but also increases the risk of business operations and increases the probability of financial crisis.Therefore,on the basis of correct interpretation and rational use of industrial policy,it is particularly important to adjust the process of enterprise expansion.Shengyun,as one of the enterprises that entered the environmental protection solid waste industry in response to the national policy earlier,has had a financial crisis in the process of continuous expansion,with a loss of 1.32 billion in 2017,a loss of3.12 billion in 2018 and a loss of 1.99 billion in 2019.Using case study method and literature research method,we analyze the reasons of the financial crisis under the existing documents and theories.The paper found that : 1.Industrial policy release means that there are many investment opportunities in policy support industries and encourage investors to enter investment;2.Government subsidies can fund the development of enterprises through financial institutions,which promotes enterprise expansion to some extent;3.Industrial policy can send positive investment signals to enterprise managers,so that managers can make investment decisions and expand based on industry development expectations.In the process of 4.enterprise expansion,if the investment projects are characterized as large investment and slow recovery,and non-efficient investment and poor management of short-term debt investment,it will increase the probability that the enterprises are in financial crisis.Based on the above results : from the macro policy level,policies should consider the development of the industry,but also consider the behavior of enterprises in the industry,to avoid excessive investment,adjust policies should give certain reaction time to avoid industry fluctuations due to the micro enterprise level,enterprises should carefully analyze the industry environment and their resources when investment opportunities and make reasonable investment decisions to avoid blind expansion behavior;At the same time,enterprises should also strengthen internal supervision,timely find management defects,to avoid the financial crisis due to financial risks due to management imbalance.