Empirical Research on the Enterprise Evaluation Based on Cost Behavior and Cash Flow Model
|Keywords||Enterprise evaluation model Cost Behavior Cash Flow Model|
Enterprise value assessment has been experienced three stages:importing fromother counties、copying the models and innovating independently.There is no denyingthat enterprise value assessment is the need of social and economic development andit developed and improved in the market which property rights trading has becameincreasingly frequent. But at the present stage, various valuation models are only fromone aspect and use a lot of assumptions and complex formulas. The most importantthing is to ignore the accounting information in the important role of valuation.As aresult,various valuation models are mainly serving for the business operators.Theyused them to maximize enterprise value management or corporate mergers andacquisitions.In this way,the interests of investors has been ignored,they are difficult toevaluate enterprise’s intrinsic value according to a practical model,at this point,theeconomic bubble is likely to lead to all kinds of irrational bubbles in stock market.Sochoose a more accurate prediction method to evaluate investment value of China’sstock market is particularly important,not only can help investors to make scientificinvestment decision,but also can eliminate the stock bubble efficiently.Based on the above backgrounds,this paper have been reviewed about thevaluation model of enterprise value,and build a new model of enterprise value whichconsidering many aspects of impacting enterprise value according to the disclosure ofaccounting information.This model comprehensively measures factors that affectsenterprise value from three aspects:cost behavior,cash flow model,and informationquality.Cost behavior mainly through contributions margin and fixed cost two aspectsto measure the enterprise value.Cash flow model mainly distinguished betweenbusiness assets and financial assets to measure the enterprise value from obtainingcash flow measures aspect.Information quality is mainly through the designing ofresidual income and cost,residuals are from the level of false profit to measure thevalue of enterprise.This model from three aspects,contact the three main financialstatements and value the enterprise by using disclosure of financial informations.Empirical analysis shows that contribution margin was significantly positivecorrelation with enterprise value.Fixed costs were significantly negative correlationwith enterprise value.Net operating assets and net financial assets were positivecorrelation with enterprise value.Residual income was negative correlation with enterprise value,while residual cost was positive correlation with it.Though the tworesidual variables affects enterprise value a little,the market still reflect on them.Themodel which is used in this paper is been created by ourselves,thus,naturally themodel explanation has became the focus of research.The empirical analysis showsthat the fit on the model,on the whole,is a kind of linear upward trend.But the stockmarket crash of2011leads to the decline on fitting degree.Overall,the model canestimate enterprise value to a certain extend,and it also reflect the relation betweenstock market pricing and the intrinsic value of enterprise is more and more closely.