The Study on Recessive Financial Capital: "Value Twist Effect" Based Perspective

DOI

10.2991/icpel-17.2017.27How to use a DOI?

Keywords

recessive financial capital, value twist effect, financial practice, driving force

Abstract

This paper manages to explore the necessity and feasibility of the research of the recessive financial capital from the perspective of the "value twist effect", such as "distorting mirror effect", "funnel effect" and "WACC guillotine cutting effect" directed at the vacant research status of the recessive financial capital. For this purpose, based on the combing and analyzing the reference system of the current recessive financial capital research and the field research on the EVA enterprises performance evaluation's result of Petrochina Shaanxi Marketing Company and China Mobile Shaanxi Ltd, this paper has observed that the objective existing of "distorting mirror effect", "funnel effect" and "WACC guillotine cutting effect" in enterprise financial value decision practice is the root of enterprise value impairment and breakage. The enterprise value impairment and breakage caused by these "value twist effect" are usually unable to do the accurate valuation and measure or being reflected in the financial statement, which has reflected a kind of recessive value impairment and breakage. On one hand, the valuation of recessive value impairment and breakage has directly promoted the research of the recessive financial capital, on the other hand, the research of the recessive financial capital has provided the policy thoughts and methods for eliminating the "distorting mirror effect", "funnel effect" and "WACC guillotine cutting effect".

Copyright

© 2017, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Xiaojun Deng
AU  - Jie Deng
PY  - 2017/07
DA  - 2017/07
TI  - The Study on Recessive Financial Capital: "Value Twist Effect" Based Perspective
BT  - Proceedings of the 2017 2nd International Conference on Politics, Economics and Law (ICPEL 2017)
PB  - Atlantis Press
SP  - 99
EP  - 102
SN  - 2352-5428
UR  - https://doi.org/10.2991/icpel-17.2017.27
DO  - 10.2991/icpel-17.2017.27
ID  - Deng2017/07
ER  -