Research On Financial Risk Prevention Of Fast Expanding Internet Video Companies

Since China's reform and opening up,the rapid economic development,national strength.The last twenty years,the rapid development of enterprises,Chinese enterprises with the Internet,pulled into the distance with the world,deepen the contact with each other.Eighteen,President Xi Jinping put forward the "cultural power" strategy.The proposed strategy for the cultural industry,is an opportunity for development.For the replacement rate of the Internet video industry,it is an opportunity and challenge.China's Internet video industry started relatively late,but enough stamina,through more than ten years of development,the Internet video business has been integrated into the daily life of every family.Internet video companies,in the face of complex economic environment and fierce peer competition,companies want to develop,or the need for overall co-ordination.This paper reviews the theory of enterprise life cycle,understand the characteristics of each stage of the enterprise,and combs the domestic and foreign scholars to discuss and study the theory of enterprise financial risk.In addition,the development status of the Internet video industry is summarized,and the main business models of the Internet video companies are classified.And the final selection of music as a case analysis of the object,the use of financial analysis of the music network 2010-2015 financial data for re analysis.In the conventional financial performance analysis,it is found that the network has the characteristics of weak solvency,low asset turnover and low profitability.According LETV business,analysis of the integrated use of financial analysis and comparison,exposed enterprises are facing cash flow,financing,product cost,the merger between enterprises and credit and other five categories of financial risk.Summarizes the LETV for main problems of financial risk prevention is 3: 1 due to expansion rather than risk;2 subsidiaries lack of effective risk prevention measures;3 of the financial risk is not fully known.According LETV financial risk of major problems,this paper proposed LETV management canstrengthen from the following 3 aspects: 1 to strengthen the financial risk management efforts;2subsidiaries in the financial risk prevention system of unified management;3 according to the five known risks,then put forward solutions.This paper selects the Internet video industry's largest LETV as the analysis object,the financial risks faced by the representative,in the same period,the same industry enterprises,will also encounter a similar situation,which can provide reference for the peer companies.In addition,the music in the face of these risks,some of the measures taken as well as the financial risks which exist in the prevention of the problem,it is worth learning from the industry and avoid.