Valuation Of Modern Papermaking Enterprises Based On Residual Income Model

Paper and paper products are widely used in various fields of cultural transmission,printing and packaging,national defense construction,production and life,and have become an important carrier for inheriting material and spiritual civilization.The paper industry is closely related to the national economy and social development.Modern papermaking enterprises are gradually getting rid of heavy pollution and moving towards the road of green and sustainable development.Paper industry is a pillar industry in the national economic development of paper industry development depends on the overall operation of modern paper enterprises,so it is necessary to explore the effective method of value assessment of modern paper enterprises to measure the intrinsic value of paper enterprises,for shareholders to understand the production and operation effect of enterprises,mergers and acquisitions transfer between enterprises,external investors making investment decisions to help.Throughout the development history of paper industry,it can be observed that non-financial factors such as forest,pulp and paper integration strategy,environmental governance ability,management and innovation ability of paper enterprises haven impact on their competitiveness apart from financial factors.Now there are few researches on the value assessment of papermaking enterprises,which mainly adopts the income approach.As a more novel model in the income method valuation system,the residual income model has been proved by many scholars to have many advantages.But at the same time,the traditional residual income model has limitations,which ignore nonfinancial factors that have a direct impact on the value of paper companies.To this end,this paper first analyzes the financial and non-financial factors affecting the value of modern papermaking enterprises,then decomposes the residual income in the model using the classical Du Pont analysis system to obtain the assessed value without considering non-financial factors,and finally selects the method of combining the residual income model and the entropy-mutation series method to evaluate the comprehensive utility of these two factors on the value of papermaking enterprises.This article is divided into five chapters.The first chapter briefly introduces the background and significance of the research,and then uses the literature research method to organize and summarize the literature,furthermore review and summary.The second chapter discusses the factors influencing the value of modern papermaking enterprises.This chapter uses Porter’s five forces model to analyze the paper industry,as well as the external macro factors and internal factors affecting the value of papermaking enterprises,so as to pave the way for subsequent model improvement.The third chapter analyzes the feasibility of residual income model valuation methods,and establishes a residual income model suitable for the valuation of modern papermaking enterprises,and improves the theoretical shortcomings of the model that do not consider non-financial factors.Model improvement is divided into three steps: the first step is to disassemble the net equity interest rate in the model using the Du Pont analysis system;the second step is to improve the enterprise value evaluation index system combining financial factors and non-financial factors;the third step is to combine the entropy-mutation series method to obtain the comprehensive adjustment coefficient of enterprise value and use it to adjust the model.The fourth chapter is case study.Firstly,Sun Paper,a representative large-scale listed enterprise in the industry,is introduced.According to the development trend of the paper industry,combined with the historical financial data and operating conditions of Sun Paper,the residual income model is applied to analyze and predict the evaluation indicators in it,and the preliminary valuation of the enterprise is obtained first.Then,considering the non-financial factors,the adjustment is made Numerical evaluation results.The fifth chapter summarizes the conclusions of this paper,comes up with the deficiencies of the paper,and puts forward prospects for future research.Taking Sun Paper,a typical enterprise in the paper industry as the research object.On the one hand,the research results display that the difference ratio is within the range of 20% between estimated value and market value before and after the adjustment of the residual income mode,which shows that the model is applicable in the value assessment of papermaking enterprises.On the other hand,the valuation result after adjusting the comprehensive value adjustment coefficient is 6.53% smaller than the absolute value of difference rate before adjustment,indicating that the model has applicability in the value assessment of papermaking enterprises.It is confirmed that this study is more suitable for the valuation of modern papermaking enterprises after adjusting based on the residual income model.