The Evaluation Of The Financial Status Of Enterprise Based On Value And Risk

Financial status of enterprise refers to all kinds of states manifested in the course of capital functioning. Because small-medium investors only have limited proprietary and income distribution right to the invested enterprises without substantive control power, the major form of their exercising right is "vote by foot", which mainly base on the evaluation of enterprise financial status. Because of the difference of channel of information, control power to enterprise, and measures of property right ensured, their evaluation to financial status of enterprise differentiates from main stockholders or state owner. At present the concerned agential problem of company management is that the main stockholders with control power rob of small-medium investors' interest. Obviously, the current evaluation system of financial status of enterprise that is purpose of main stockholders or state owner's evaluating executives' accomplishment cannot satisfy small-medium investors' demand of information. For above reasons, author design the system of medium-small investors' evaluating the financial status of enterprise based on value and risk.There are three parts in this paper.The first part (including Chapter 1, 2) is the theoretical foundation of the paper. It summarizes the research concerned national and international and the background and meaning of this paper.The second Part (including Chapter 3) analyzes and comments the problems that the present system of financial status of enterprise based on performance can't satisfy the medium-small investors or potential medium-small investors.The third part (including Chapter4, 5) is the key content of the paper. In view of the problems having been mentioned, it puts forward a new index system and appraisal approach of financial status of enterprise. Small-medium investors or potential medium-small investor should proceed from risk and value of enterprise and analyze the level of profit, defense of risk, management of capital, state of development andAcquirement of cash, and carry on comprehensive appraisal to enterprise financial status with factor analysis. Synthesizing professional standard, we can obtain the grade of financial status of enterprise and the rank status in the compared enterprises. Then Small-medium investors or potential medium-small investors can take the result as the referee or bases of decision-making of investment.In the part of Conclusion remarks, author sum up the innovation of the paper and problems that still needs to be solved.