The Risk Analysis Of Corporation Investment Decision

Nowadays, our country is in the crucial period of economy system innovation, large changes are being taken place in investment domain. Changes in investment domain call for the innovation of investment system, need developing and perfecting investment theory in order to direct investment practice.Investment always goes with the risk. Corporations should not only take in hand risk bravely but also are good at it so as to gain investment income and realize long-term healthy development. Only selecting investment project correctly, eluding the risk, establishing perfect and effective corporation investment risk management system, can corporations keep the continuity, stability, high-effective and security of corporation economy activity, while Investment Risk Analysis () is the key step.The paper introduces the basic theory of corporation investment and risk analysis first, then it presents the studying status and main production of corporation investment decision basic conception, risk, risk factor, risk management theory and risk analysis method as well.To analyze the risk of corporation investment project, the confirmation and degree of risk factors is necessary. For that, using the break-even analysis and sensitivity analysis, the paper gets the risk factor cursorily. Later, gains the risk degree of investment projects with the method of matrix and queue them.Risk is always having affiliation with its impact on practice. It cannot reflect the enduring ability of investors. Based upon the studying of formers, a risk-use decision model of corporation investment decision is advanced in the paper; the model advances the conception of Degree of Risk Control and Degree of Payoff Attraction. The paper discusses the influence factor of the two degree and finds the function ideally, analyzes the rationality of the model.As a case study, this paper analyzes the risk of investment projects of GTGPC ChangJiang Industry Investment Corporation with the method and model proposed in this thesis,and gains some significant conclusions. It shows that the approach and method of risk analysis advanced in the paper are rational and effective, and it can be used in the field of risk analysis for the corporation investment of our country.