Research On Enterprises' Fund Raising Risk Management

After China's accession to WTO, market economy becomes mature and international increasingly. As a mainstay of the market, enterprises which participate in market competition must recognize faced various risks and understand the existence of the risk correctly. Only by doing so can we identify, prevent, defuse and avoid risks in the market competition, and avoid foreseeable losses in management , and achieve the desired business development goals at last. In order to survive and develop in the fierce market competition, many enterprises expand the business constantly and diversified develop, fund raising activities is increasing. A correct understanding of financing risks, and prevent and control the enterprise need to address It is an important issue which the enterprises need to address that understand and prevent and control fund raising risk correctly .Traditional finance theory defines the enterprise's fund raising risk as the uncertainty which the financial achievement brings as a result of being in debt, and regards the fund raising risk as the debt risk. This kind of theory causes the superintendents only put emphasis on debt fund raising risk and neglect rights and interests fund raising risk. In fact, the enterprise's fund raising risks include rights and interests fund raising risk as well as debt fund raising risk. Both of them are essential, improper handling will cause serious consequences. Although the cost of debt fund raising risk is relatively low, but you must consider the possibility of scheduled debt-servicing problems, fund raising risks relatively large. Although there is no maturity debt-servicing problems for rights and interests fund raising, the enterprise will give the owners of equity capital and also the shareholders for dividends annually, in theory, its fund raising cost is relatively large. Therefore, in the actual fund raising process, the enterprise should be combined with the actual situation of their own development, measure the fund raising risk and fund raising costs, and choose an optimal capital structure to achieve long-term sustainable development positively; in the end, take the Shu Guang company for example, illustrate how to make a choice in different fund raising options.In the market economy, as a mainstay of the market, enterprises which participate in market competition must recognize faced various risks and understand the existence of the risk correctly. Only by doing so can we identify, prevent, defuse and avoid risks in the market competition, and avoid foreseeable losses in operation, and achieve the desired business development goals at last.This paper sets out from the basic theory of fund raising risk , systematically summarizes and elaborates about the definition and classification and other issues of risk, financial risk, fund raising risk involved in fund raising management,put forward my views and issues needing attention by combining the views of scholars at home and abroad ; analyzes in-depth and comprehensive fund raising risk arising from exogenous factors and endogenous factors; uses a combination of qualitative and quantitative methods of setting forth about the identification and assessment of the fund raising risk; analyzes and compares from both positive and negative aspects of debt fund raising and rights and interests fund raising management; compares from capital costs and risks of debt fund raising risks and rights and interests fund raising risks; proposes the measures from the technical and institutional buildings on how to prevent and control fund raising risks.In this paper, the research on the fund raising risk management mainly about debt fund raising risk management, and combines the analysis of rights and interests fund raising risk management, taking into account China 's listed companies prefer rights and interests fund raising, attempts to compensate for the deficiencies of traditional theoretical fund raising risk, provides an effective basis for the scientific management in fund raising risk, attempts to make the management in fund raising risks more scientific and standardized.