The Management Of The Capital Risk On The Road Of Enterprise Expanding

The real example is analyzed and shown: To each world-class enterprise which enter 500 tops, though their business scale of today is very surprising, have assumed the air of" economic dinosaurs ". But trace back to its development course, they all went through a section of quite long enterprises expanding course without exception. We can say that they have gone through " trials and hardship " baptism of market economy. Then it stands to grow up. At the same time we notice even more, on the road of expanding in enterprises, more enterprises threw " the somersault ". Some were even unable to get rid of so big expanding risks but eliminated finally.Under the market economy condition, expansion as a kind of independent economic behavior, it is determined by one's own rule of development of enterprises. The capital risk of enterprises expanding objectively exists and will increase constantly. The management of the capital risk is great to the influence of succeeding or not of expanding. Because of such understanding, I choose the management of the capital risk on the road of enterprise expanding as the theme of the thesis. And I lay particular emphasis on the discernment, assessment, take precautions against and controlling of the risk.First, the thesis concentrates the angle on investigating to the expansion action from the gradual progress, essence and capital of enterprises at first. It wants to state enterprise's gradual progress course is the scale enlargement. It is that theconcentration of capital in enterprise expanding is inherent requirement of enterprises that develop and chase profits.Second, the thesis analyzes the reason of enterprise expanding which is much getting heavy. I review the reason and analysis of every school about expanding hypothesis. And I point out that every hypothesis is difficult to explain expanding overall and rational alone. For example the theory of the transaction cost has stronger explanation strength in expanding vertically, but to horizontal expanding and mixing expanding which lack convincingness. I think a feasible one to go answer which can look for from inherent essence taken place to expand, because the essence of enterprise expanding is capital expanding. The reason of enterprise expanding is capital pursuing value-added requirement constantly.Third, this thesis structure with the procedure and mechanism of" Discernment - Assessment - Strict precaution and Control " in the management of the capital risk. I propose to discern and assess it according to the concrete source of the risk and provide concrete capital risk assess model. And I advise the concrete measure and method that take precautions against and control the capital risk.At last, the thesis draws the following conclusion: First, fund-raising activity is the primary activity of enterprise expansion. So the capital risk which fund-raising activity caused is focal point and difficult point thought the whole activity of expansion. Second, this kind of capital risk mainly stems from the objective reality of the investment risk. And it closely related with the reasonable structure of fund, the retrieves risk and the risk of distribution of income. We can adopt the analytic approach of the financial rate to discern and assess this capital risk, and discern through a series of financial indexes that is correlated with. Third, considering the interdependence relation on profound level among the risk of the capital and structure of the capital, coefficient of the financial lever and investment risk, while adopting and changing the risk of assessing of coefficient, the assessment model of the risk of the capital is: Risk of the capital = change coefficient of the earning per share (EPS) (namely enterprise's total risk ) - change coefficient of the pretax profit of a interest (namely investment risk )= (the coefficient of financial lever - 1)X Investment risk. Fourth, according to different origin cause of the capital risk in enterprise expanding, we should take precautions against and control measures fundamentally in order to decrease the capital risk as follows: Control funds rationally, safeguard the mobility of the assets; Set up sinking fund, strengthen the risk and take on ability by oneself; Improve the utilization benefit of the fund, reduce the investment risk; Pay attention to the financial leverage, borrow money appropriately, optimize the structure of capital; Strengthen the management of financial budget, keep the proper financial elasticity; Deal carefully with the financial affairs and fail, guarantee enterprises to manage continuously and steadily. The fifth, through a case, concretely discerns, analyses and manages the capital risk in enterprises expanding.