Inventory External Factors Affecting Financial Policy Choice

　 (1) economic cycle The influence of the factors.

In today's economic globalization, with the establishment of the socialist market economic system, the company that is the theme of the market economy is being pushed to the market, not only to operate independently, but also to bear the responsibility of profit and loss. The market economy is different from the planned economy. She has a certain cyclical nature, that is, she must undergo four stages of recovery, prosperity, recession and depression. Correspondingly, the financial policies adopted by listed companies at different stages are different. Generally speaking, during the boom period, the market demand is strong, and the market supply is also increasing. Investment policy choice should increase investment to expand production, and at the same time, raise funds to meet the investment needs in the short term. In the depression period, because of the overall macroeconomic environment downturn, the market needs to be reduced, which may cause a large number of product inventory to the listed companies, the cash flow of enterprises is not smooth, and it is difficult to find new feasible investment projects, prompting enterprises to adopt a tight financial policy.

　　 (2) the influence of industrial policy factors.

Industrial policies are the principles and strategies formulated by the State concerning industrial structure, industrial organization and industrial development. With China's accession to the WTO, China's listed companies should enter the international market and take part in international competition. This will speed up the adjustment of China's industrial structure, and some traditional industries which are protected by the government will be impacted. The development of high-tech enterprises relying on new technological advantages will grow stronger. This change in industrial structure will inevitably lead to the transfer of social resources. There is no doubt that different listed companies will choose financial policies conducive to their own development in the face of these policy orientated directions. Generally speaking, for the traditional industries protected by the government, they have accumulated a large number of state-owned capital. Under the background of gradual deregulation of the government, the financing, investment and capital operation of listed companies should adopt prudent financial policies, so as to successfully adapt to the transition period, prevent the loss of state assets and reduce operational risks. For high quality enterprises with high technology content and good prospects, they should comply with the international situation, make full use of the government's policies, find the best breakthroughs, and rationally choose various financial policies.

　 (3) the influence of financial environment.

With the decrease of government behavior and the gradual opening of access restrictions of foreign financial institutions, the financing channels and modes of listed companies are diversified. The changes of financial environment such as financial market, financial and monetary policies, and financial system restrict the choice of investment and financing policies. For example, as a financial market for enterprises to invest and finance, the expansion of their scale and the gradual improvement of the market provide a variety of alternative combinations for enterprises to invest and finance. Listed companies can not only finance in the domestic market, but also can raise money in the international market, and the financing tools are becoming more and more abundant. They can not only choose equity financing or debt financing, but also use two kinds of financing methods. Correspondingly, this increases financial risks, such as interest rate risk, exchange rate risk and inflation risk. Generally speaking, when choosing a financing method, a listed company should compare the cost of capital generated by different financing methods and choose a channel with lower capital cost to finance. Of course. In addition to the cost of capital, we should also consider the potential of financing, the constraints, the risk rate and the capital structure and investment direction of the financing channels. We should not engage in high-risk investment and financing matters, so as to avoid companies' low debt or even bankruptcy.

　 (4) Finance and taxation policy Influence.

As an income distribution policy, fiscal and taxation policies have an important impact on the capital supply and tax burden of listed companies, as well as their production, operation and financial benefits. If the company increases taxes in a certain period of time, its profits will inevitably decrease, so the choice of financial policies can not be separated from the influence of fiscal and taxation policies. Generally speaking, when the state is nervous, it is possible to increase taxes, and companies should take appropriate investment methods and scale. Because no matter what form of investment companies or projects and businesses are bound to face different tax policies, listed companies can choose to invest in treasury bonds, because the interest on Purchasing Treasury bonds can be tax-free, and debt financing can be adopted in financing policies, because the interest expense of debt financing can be deducted before tax. The dividend distribution policy should deal with the relationship between accumulation and distribution, which not only meets the needs of regenerated production, but also protects the basic interests of shareholders. In addition, tax planning should be made according to national finance and taxation, which will help to select the best financing plan, investment plan, capital operation plan and profit distribution plan.

　 (5) the influence of legal environmental factors.

The legal environment mainly refers to various legal factors that affect corporate finance. With the development of economy and society, the idea of ruling the country by law has gradually taken shape. The state's intervention in enterprises has changed from the original administrative means to the economic and legal means, especially the legal means. Nowadays, China has made many economic laws and regulations, which regulate the financial behavior of enterprises from all aspects, and also provide guarantee for the normal financial activities of enterprises. Therefore, the choice of financial policies of Listed Companies in such a legal environment is bound to be affected. Generally speaking, only when we fully understand the legal environment and engage in financial activities within the scope permitted by law, can we avoid the occurrence of illegal and illegal acts, so that the listed companies can continue to develop. For example, the importance of tax law is self-evident. The company is located in different areas, operates different products, belongs to different industries, bears different taxes, and how to achieve the lightest tax burden through various combinations of financing, investment and profit distribution is the need to study when selecting financial policies. In addition, we should constantly enhance the awareness of laws and regulations in the process of selecting financial policies, and make full use of legal means to safeguard their interests.

　　 (6) the influence of external stakeholder factors.

(1) the government. As a social manager, the government, through formulating a series of legal systems and public plans, providing optimized information guidance, improving the ecological environment and building public facilities, has provided a lot of support for the development of enterprises. It is undeniable that the government is the most important external stakeholder affecting the choice of corporate financial policy. Generally speaking, when choosing financial policies, enterprises should not only realize their own business objectives, but also pay attention to the social benefits of enterprises, establish a good corporate image and take on their due social responsibilities.

Creditors. The creditor has invested the creditor's right capital to the enterprise, and also must obtain the interest from the enterprise surplus. However, compared with shareholders, the creditor's right to claim enterprise surplus is fixed, with the characteristics of regular, quota and fixed rate. Nevertheless, because of the inconsistency between the interests and objectives of the enterprise and creditors, the asymmetry of information asymmetry and risk preference, and the uncertainty of the market environment, the creditor will also have the risk of not getting the principal and interest. Therefore, the choice of financial policy should take full account of the interests of creditors, maintain appropriate asset liability ratio, and adopt a relatively sound financial policy to coordinate the relationship between them so as to achieve long-term development of enterprises.

Third, competitors. Competitors refer to enterprises that produce and operate similar products. According to market share, they can be divided into leaders, challengers, followers, and pickups. When an enterprise is engaged in business or financial activities, once its behavior affects the interests of competitors, competitors will make corresponding decisions to deal with. The consequences of these decisions will often indirectly affect and affect enterprises. Therefore, when choosing financial policies, enterprises should first analyze the competitors' policy orientation and management strategies, so that they can know themselves and win the battle.