Research On Financial Risk Control Of Chinese Listed Companies

In recent years, the enterprises in our country grew and developed rapidly, but allkinds of potential risks increased prominently accordingly, especially in thebackground of the international financial crisis, many companies faced huge assetsloss, financial and accounting fraud, operation failure and even bankruptcy every nowand then due to lack or failure of internal financial risk control. On November29,2004, China Aviation Oil (Singapore) Corporation Ltd. applied for bankruptcyprotection to the Supreme Court of Singapore after accumulating losses of0.55billionus dollars in oil future market due to its previous wrong judgment for the trend of oilprice; In2005, China Southern Group couldn’t recover its1.2billion yuancommissioned financing loans; In February,2007; Shandong Wanjie Group faced0.75billion yuan huge debts. These cases fully exposed that the enterprise riskmanagement was still a weakness for these enterprises, they still not realized theimportance of the financial risk control, and they were lack of an effective system offinancial risk control measures.Through theoretical analysis, this paper points out that the financial risk control isan important part of the internal control. It combined the actual conditions ofShanghai Stock Market and Shenzhen Stock Market, selected1585listed companieswhich issued A-shares at Shanghai Stock Exchange and Shenzhen Stock Exchange byDecember31,2010as samples, used model and studied the dates, created the quantityrelation between the internal control and the financial risk control, demonstrated thefinancial risk control’s necessity by analyzing the correlation between financial riskcontrol and enterprise internal control, and based on these, put forward to themeasures for strengthening the financial risk control. The measures includeestablishing a corporate financial risk early warning system, establishing a soundcorporate financial operation mechanism, regulating the corporate governancestructure and establishing a corporate financial risk control evaluation system.