Research Of Military Listed Companies Financial Risk Control

With the establishment of modern enterprise system, the mechanism for theimprovement of corporate governance and corporate ownership and the right tooperate the separation of the company’s development faces a variety of risks, financialrisk is one of the major risk. Financial risk usually refers to the company’s financialactivities due to a variety of uncertainties, the company’s financial income andexpected return deviation occurs, eventually leading to the possibility of loss.As a typical representative of the defense industry, military listed companies byseeking development in the capital market, the country needs and the development ofthe company’s integration, financing channels for the military listed companies added.How to establish risk awareness, the establishment of financial risk control systemand control financial risks is the main purpose of this study. Departure from theperspective of risk control, the study the military listed companies financial riskcontrol, for promoting the development of China’s national defense science andtechnology industry, and promote the health of our national economy, sustainabledevelopment, with a clear practical significance and academic value.Dominance of this article45listed companies with a military background as theresearch object, through its balance sheet as at December31,2011, the2011incomestatement and cash flow analysis, hidden in the statements of financial risks andspecific, while exposing the deep-seated reasons that led to the financial risk. In thispaper, systems analysis, qualitative and quantitative analysis, and comparativeanalysis, summed up the military listed company’s financial risk mainly in the higherdebt ratio is too large, the amount of accounts receivable, inventory and assetturnover lower, the lower ROE four aspects. Then we analyzed the reasons for theformation of the financial risk. Finally, the use of financial risk control theory,improve the military class listed companies’ financial risk control system, thereby enhancing the military listed company’s management and standard operation level,the ultimate realization of the military listed companies to maximize the benefits andsustainable development objectives.