Analysis on the Correlation between Financial Assets Holding and Enterprise Value of Listed Companies

Jiayang Huang

doi:10.54691/bcpbm.v49i.5466

Authors

Jiayang Huang

DOI:

https://doi.org/10.54691/bcpbm.v49i.5466

Keywords:

Listed companies, Financial asset holdings, Enterprise value, Correlation analysis

Abstract

After entering the Internet era, the capital market has developed at a faster speed, among which the stock market has brought many retail investors into the capital market and injected new blood into the explosive development of the capital market. For the enterprise value that reflects the long-term sustainable development ability of enterprises, scholars have not conducted further in-depth analysis, and the R&D innovation and fixed assets investment of enterprises are probably only the transmission ways of financial assets holding on enterprise value. Therefore, by analyzing the influence of financial assets held by listed companies on enterprise value and its transmission mechanism, listed companies will consider the asset structure when investing in financial assets: if the investment rate of financial assets is high and the liquidity of assets is strong, enterprises can appropriately reduce the current financial assets and increase the physical assets, and can consider buying financial assets to increase the investment rate of financial assets. In such a big environment, enterprise managers can achieve an ideal asset ratio by studying the relevant influence mechanism, thus effectively improving investment efficiency and realizing the long-term stable development of listed companies.

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