The Financial Risk Assessment Study On Energy Conservation And Environmental Protection Industry Listed Companies

With the accelerating process of urbanization and industrialization, the environment problem which restricts the development of Economy-society is becoming increasingly serious. The government also began to realize the importance of saving resources and protecting the environment. With the concept about circular economy, we need to explore a more stable and sustainable business model. So the energy conservation and environmental protection industry emerges as the times require. The energy conservation and environmental protection industry as the sunrise industry has a rapid development under the policy guidance. However, it is faced with the double oppression of technology and market. And the financial risk management issues become increasingly prominent. So the financial risk assessment study on energy conservation and environmental protection industry listed companies has certain theoretical value and practical significance.As the lifeblood of the company's operation, cash is the most active part of the assets through the entire process of the company's daily operation management. The sufficiency of cash plays a critical role in the survival and development of enterprises. First, this thesis arranges the relevant literature on the research of enterprise financial risk and the evaluation at home and abroad, introduces the development status of China's energy conservation and environmental protection industry. Then the thesis puts forward the enterprise financial risk evaluation of the cash flow method from the angel of cash flow, and makes a concrete analysis of financial risk source and impact elements according to the sequence of financing link, investment link and withdrawal of funds link. The paper combines the cash flow and entropy method and constructs a new system of energy conservation and environment protection companies for financial risk assessment. Meanwhile, the paper uses the energy conservation and environmental protection industry of 66 listed companies as samples, and constructs the financial risk assessment model. This thesis enumerates an example of Anhui Shengyun Environment-Protection group Co., Ltd, carries a depth analysis on the company's financial condition in accordance with the method of combining qualitative and quantitative, and explains how to prevent and control the corresponding risk. At last, from financing activity, investing activity, withdrawal of funds activity and technological innovation activity of the four aspects of energy conservation and environmental protection industry's financial risk prevention and control are described.