Study On Control Of Financial Risk In Adventure Investnent

Due to its great contribution, the adventure investment was reputed as "creation, exploration and wonder-making" and "a diamond embedded in American economy". However, it was true that its great adventure brought tremendous loss to many countries' economy . Both the theoretical and practical circles have done research and analyzed the risk and control in adventure investment from different perspectives. But systematic documents expounding from the micro levels cannot be found in large number. Operational works catering to China's adventure investment are particularly few. Due to that, this paper investigated the whole??process of the low of?capital in adventure investment and gained the conclusion that the biggest risk in adventure investment derives from its own financial risk. Once the financial risk in all procedure of the adventure investment are controlled effectively, it will be possible to diminish maximumly the risk in adventure investment. As China's exploration market is about to open quotation, it is of great theoretical value and practical significance to study the risk and control of adventure investment.The paper starts with analyzing the failure of the pioneer in China's adventure investment —China High-Tech Undertaking and Investment Company. Led by the related theories in adventure investment, the paper stands at the position of adventure investment companies. It divides the whole process of? the flow of capital into three stages: raising money—investment —retreat, and discusses respectively the financial risk and control methods at each stage in detail. The body covers six chapters and focuses on Chapter Three, Four, Five and six. Chapter Three studies the static and dynamic capital in raising money. Ways to solving the problems are to set up an optimum capital structure in the purpose of decreasing the cost of long-term capital, and meanwhile assure the flowing of short-term capital. Chapter Four focuses on the evaluation of the finance in investment. By discerning and measuring adventure as well as by analyzing the value of future, the paper holds the idea that it is much more rational than the traditional ways to evaluate adventure investment projects through future-price-deciding. Chapter Five discusses the selection of financial tools in adventure investment. It believes that the selection can transfer the preferential stock and help to reduce apparently the risk in investment.?Chapter Six studies how to supervise the adventure enterprises after the adventure capital?has been cast out. Selecting four apparent financial targets and based on the financial advanced warning of general enterprises, the advanced warning of financial risk in adventure enterprises can be achieved by obtaining the composite index of advanced warning through ambiguous mathematics. Chapter Two and Seven are also important, but they don't contain key information of this study; because Chapter Two serves as the bedding of this paper. In Chapter Seven, being affected excessively by the objective factors outside as the capital is withdrawn, the subjective initiative of the adventure investment company, which is considered?to be?the micro subject,?are restricted.Five points can be summarized to explain the exploration of this paper. First, the risk in adventure investment is studied from perspectives of finance and controlled through financial means; Second, the means of future is applied to evaluate the projects of adventure investment, and to expand the traditional NPV, assuring currently the value of time and opportunity in the evaluation of investment projects; Third, the idea of composite investment at different stages has been put forward. The application of the Tester selecting model of adventure investment has concretely inspected the practicability of this model in China's adventure investment; Fourth, the composite advanced warning indexes in adventure investment are reached through the theory of ambiguous mathematics; Fifth, learning from the idea of composite investment, the strategy of composite re...