Research On The Relationship Between Inventory Efficiency And Firm Value Based On Global Value Chain

Globalization has promoted the establishment and development of global production networks and the international division of labor and cooperation has been continuously refined and extended.Nowadays,the rapid rise of the global value chain has become the most significant feature.China is deepening the global value chain to participate in the international division of labor and cooperation,which is conducive to further industrial development and economic growth.In the competitive economic environment,it is of great significance to identify the enterprise’s own positioning and formulate an appropriate development strategy from the perspective of the global value chain.However,the inventory level of manufacturing enterprises is generally high.It is of great research value to discuss the impact of inventory efficiency and enterprise value based on the perspective of the global value chain.Moreover,focusing on the deepening development of Global value chains in China,this thesis addresses the role of GVC participation and GVC position in shaping the relationship between inventory efficiency and firm value.This thesis incorporates the World Input Output Database(WIOD)and firm-level data from Chinese Annual Survey of Industrial Firms(CASIF)database into a unified value chain framework,which enables us to determine GVC participation and GVC position at the country sector level and conduct the empirical regression analysis during the 1998–2010 year.Through empirical research,the research conclusions are as follows:(1)There is a significant positive correlation between firm value and inventory efficiency,that is,high inventory efficiency helps to improve firm value.(2)The meditating effect of GVC participation and GVC position,both of which actively promote the relationship between inventory efficiency and firm value.Based on the above analysis,the following recommendations and suggestions are put forward:(1)This is an available and feasible proposal for managers to attach importance to inventory efficiency,which is conducive to the value of the firm.Enterprise managers attach importance to inventory management,which is helpful to improving the profitability of enterprises and creating more value for shareholders.(2)Participating in the global value chain is not only in line with the historical trend of global economic development,but also conducive to the development of Chinese enterprises.Enterprises should be committed to participating in the global value chain and enhancing their position in the global value chain,which is conducive to enhancing firm value.In the process of deepening the global value chain,inventory efficiency has a greater impact on firm value,therefore,enterprise managers should pay more attention to inventory efficiency management.(3)The governments can help enterprises participate in and enhance their positions in global value chains through innovative policy support,in terms of the aspects of capital,talents and finance,so as to build a manufacturing power.