The Research On Financial Risk Management Of Agricultural Listed Companies

Risk management has always been a hot topic to scholars in researching and discussing on business management, and is considered one of three management functions in modern economic organization; financial risk management as the core of risk management theory is extremely concerned. But our Research on financial risk management is still in a leading edge and innovative phase.Agriculture is the basic industry related to the national economy and People's livelihood, which plays a vital role in the national economy. And its listed companies are the advanced representative of agricultural enterprises, and the development directly expresses our agricultural development, so to the promotion of agricultural modernization and the sound and fast economic development it can play an important role. Based on industry characteristics, a separate study on financial risk management of agricultural listed companies is necessary.Established on the domestic and international studies on the financial risk, financial risk management and financial risk management of agricultural listed companies, firstly this paper profoundly analysis the current status of the financial risk combining the characteristics of agricultural listed companies. and found that listed companies in China's agriculture widespread:deterioration in financial position, high debt ratio, capital of small-scale, asset structure is irrational and so on. Secondly, Choosing financial data in three successive years of 28 Agricultural listed Companies from 2007 to 2009, using the principal component analysis and factor analysis, and based on the financial risk systematically quantitative analysis, try to form the comprehensive evaluation system of financial risk for our Agricultural Listed Company. General revelation, the influence of agricultural listed companies includes internal and external causes of the financial risk. External causes mainly include natural environment factor, political and legal environment factor and economic environment factor; and internal causes can be analyzed from the quantifiable level and non-quantifiable level respectively. Finally, based on comprehensive evaluation system of Agricultural listed Companies' financial risk and the internal and external causes analyzed, will propose solutions and countermeasures to strengthen financial risk management based on the conclusions of a comprehensive analysis on financial risk management of agricultural listed companies.