Effect of Corporate Debt on Firm Value

Shemetov, Valery V.

doi:10.17265/2328-2185/2021.05.003

Cited by 1 publication

(1 citation statement)

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“…Solvency refers to an enterprise's ability to repay its debts when due. Under market economic conditions, as an independent economic entity, the strength of an enterprise's solvency directly affects its ability to pay, credit, reputation and financing, and can even affect its ability to operate [7]. The current ratio is the core ratio to measure the short-term solvency of an enterprise.…”

Section: Figure 2 Operating Marginmentioning

confidence: 99%

Empirical Analysis of Factors of Company Value Based on Hermes

Liu¹,

Ma²,

Wu³

et al. 2023

BCPBM

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Company value is the focus of contemporary economic society, and what factors will affect it is also one of the key topics of research. Although scholars from various countries have carried out many studies on the influencing factors of enterprise value, there are still differences and no agreement has been reached. The pursuit of perfect quality, practical simplicity, family tradition in business, and never purposefully catering to trends are the elements that elevate Hermès to the pinnacle of luxury and give its exorbitant price a reasonable market value. The factors influencing the value of a business are extremely complex. Therefore, this study puts forward 10 hypotheses based on the comparative analysis of Hermes and its competitors, and takes 1259 A-share listed companies as samples to collect data, conduct empirical analysis on the data, and explore the influencing factors of enterprise value, in order to obtain a generally applicable conclusion. Research shows that solvency, especially short-term solvency, is one of the impact factors of company value, along with profitability, ownership concentration, R&D investment, the ratio of R&D investment to operating income, and the degree of market monopoly. Hence, it is suggested that enterprises should reasonably control the level of leverage, promote the awareness of innovation, improve profitability, and pay attention to the introduction of talent.

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Section: Figure 2 Operating Marginmentioning

confidence: 99%