Research On Financial Risk And Management Control Of Private Enterprise Group

For over 30 years of reform and opening-up,the development of private economy in China gradually overcome the problems such as weak foundation,slow development and so on.It smoothly transformed from initial stage to advanced stage and rushed into the active factor and important link in national economy.But in terms of present status of private economy in China,the private enterprise group,which also named backbone of development,nearly pursue profits and ignore the potential risks,especially financial risks.Therefore,how to manage and control financial risks by feasible ways is becoming more and more important.At the very beginning,this study summarizes the relevant theory of private enterprise group and early warning of financial risk.Literature study shows that,the assessment of the management and control of financial risk of private enterprise group need to link to relevant early warning model at specific social background.But certain limitations exists in current assessment models because of different variables,most of them are unsuitable for the assessment of the management and control of financial risk in China.As a result,on the basis of present situation and sources of risks,this study uses financial statement data of non-ST and ST listed private enterprise group to test three hypothesis and modifying the early warning model--Z-Score Model,aiming at promoting the accuracy in warning the financial risks of private enterprise group in China.After the test of three hypotheses,this study also makes an detection analysis and adjusts one of the important variable and distinguishing point to definitely ensure the accuracy and authenticity of the usage of revised model.With the continuous development of private economy,the importance of private enterprise group is gradually shown up.It's obvious that opportunities and challenges are in the same bowl,so it's also essential to guard against financial risks by appropriate warning system.The assessment of management and control of financial risk has of high importance meaning to private economy,which will promote the healthy development of private enterprise group.