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Academic Journal of Humanities & Social Sciences, 2020, 3(6); doi: 10.25236/AJHSS.2020.030601.

The Impact of Long-term Over-allocation of Financial Assets by Apparel Enterprises on Company Performance

Author(s)

Wenchao Zhong1, *, Jinzhou Chen2

Corresponding Author:
Wenchao Zhong
Affiliation(s)

1 School of Management, Guangdong University of Technology, Guangzhou 510000, China
2 School of Economics and Trade, Guangdong University of Technology, Guangzhou 510000, Guangdong, China
*Corresponding author e-mail: 923040569@qq.com

Abstract

The real economy is the basis for the survival and development of human society and the starting point and foothold of the virtual economy. To solve the major structural problems in China----the real economy’s "Transformation from real to virtual", the root cause is to address the development problems of the real economy. The key breakthrough for developing the real economy with high quality is to develop enterprises with high quality and provide enterprises with a high-quality external environment. In the case of a large "bubble" in the financial market, as a domestic clothing giant, Youngor has been "marginalized" in the clothing business for more than a decade, focusing on the real estate industry and financial investment, which led to brand aging, market visibility and market position decline, young customer groups loss and low retern on equity. This case starts from the study of the asset allocation results of Youngor Group Co., LTD., explores the influence of excessive investment in financial assets by non-financial enterprises represented by the apparel industry on the long-term development of the enterprise, and puts forward some targeted advice for such enterprises.

Keywords

financial assets, Youngor, corporate financialization

Cite This Paper

Wenchao Zhong, Jinzhou Chen. The Impact of Long-term Over-allocation of Financial Assets by Apparel Enterprises on Company Performance. Academic Journal of Humanities & Social Sciences (2020) Vol. 3, Issue 6: 1-16. https://doi.org/10.25236/AJHSS.2020.030601.

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