Growth Stage Of Enterprise Financial Risk Control Research

Growing enterprise is a potential force in national economy. It plays an important role in providing employment, activating market competition and promoting economic growth. However, due to the rapid expansion in the development stage, the primary business continues to expand, the operation scale constantly expands and a various of resources are in short supply. Compared with the other stages of the life cycle of the enterprises, financial risk is more outstanding. With the growing enterprise financial index data as the basis, establishing the financial risk early warning model of growth period in the life of enterprise, is proposed to prevent the growth of enterprise financial risk control measures during the process from the different financing such as loaning, investment, operation, allocation of capital movement.Based on the enterprise life cycle theory, risk management theory and the basis of financial risk management theory, using qualitative and quantitative methods to define growing enterprises:from the qualitative aspect, consider that the enterprise life cycle stages of growth enterprise as the growing enterprises; from the quantitative aspect, to meet that the operating activities net cash flow is positive, the investment activities net cash flow is negative,the financing activities net cash flow is positive, and at the same time, annual sales growth rate is greater than or equal to10%of the enterprise,which is considered as the growing enterprises. Through the analysis of the characteristics of cash flow in the growth stage of the enterprise, according to the movements of capital in the enterprise, the growth stage of the financial risk of the enterprise can be divided into investment risk, operational risk and income distribution risk, and cause the. Then, using principal component analysis method to the sample enterprise financial data, get the comprehensive factor score function in growing companies, through the empirical analysis, growth period enterprises are faced with financing higher risk, the investment risk is not big, but the enterprise expansion in the amount of assets should focus on the asset quality improvement, in addition, enterprise should also pay attention to prevent drop because of turnover of current assets level caused by operational risk, compared with other financial risk, income risk of small growing companies, can still keep the original dividend policy. Finally, based on the above research conclusion, this paper respectively proposed preventive control measures to reduce and prevent the financial risk which is faced by the growth period enterprise from the respects such as financing risk, investment risk, operational risk and income distribution risk four.