The Study Of The Financia Risk On Private Enterprise Reorganization Of State-owned Enterprise

Private enterprise has become a major force to promote national economic development through the past 20 years of development, accounting for about 50% of the GDP and around 70% of economic growth, so private enterprise has already possessed enough strength to participate in the state-owned enterprise reform and reorganization and state-owned assets treatment to state-owned assets in a large-scale. Experts have pointed that if the policies and measures are implemented, the participation of private enterprise in the restructuring of state-owned assets will have great historical significance for China's national economic development. Nevertheless, it should also be clearly seen that there is risk with the reorganization. Even if the reorganization is successful, the effect of business operation may not be very satisfactory, the core competitiveness of the principal work would be lost and financial crisis would appear. Because of it, combined with relative knowledge of management field, the study will first review the current related domestic and foreign theories in the field of researching enterprise reorganization and the progress in this regard. Then, the article will analyze the current situation and the development trend of private enterprise restructuring state-owned enterprise and the financial risk. A detailed analysis of main financial risk on decision phase, implementation phase of transactions and operation integration phase in enterprise reorganization plan will be given. Then, the paper takes Group FD reorganizing GC plant as an example, making a detailed analysis and evaluation on the financial risk of this reorganization in such aspects as choice of restructuring patterns, decision on reorganization pricing, financing risk, asymmetrical accounting information risk, irrational financial decision-making risk and systemic risk in the process of reconstructing, and puts forward relevant proposals to prevent financial risk. Finally, proposing such financial risk prevention measures as checking the motivation of mergers and reorganizations, standardizing and regularizing reorganization, making policies to prevent liability financing and improving state of a symmetric information.