Research On Financial Control Of Gambling Agreement Risks

Valuation Adjustment Mechanism(VAM)is a protection mechanism based on the uncertainty of the future business performance of enterprises.For most of the enterprises,Valuation Adjustment Mechanism can help the investors to do the restraint and supervision of the other party's business conduct,and also enable the financiers to obtain higher capital support at the lowest cost.However,the current domestic enterprises improperly use VAM and lead to a high proportion of failures.Therefore,it is vital for the healthy and sustainable development of enterprises to explore the evaluation and control measures to deal with risks when choosing to use Valuation Adjustment Mechanism as the financing tool.First of all,this paper has combed the theory research on VAM and the financial control related to the risk of VAM,and summarized the connotation,meaning,type and main clauses of it.Then,in this paper,absorbing and drawing lessons from the market value management and intrinsic value management thought in the theory of value,and du pont analysis system,a set of financial analysis framework for the risk of share price betting is constructed.In the end,this paper selects a case study of China Modern Dairy Holdings Ltd.On the basis of the analysis framework,and the core concern--the share price as a starting point,the paper analyzes the risks of the case of China Modern Dairy Holdings Ltd from two perspectives: intrinsic value and extrinsic value,and then financial control measures are put forward.According to the research,the risk analysis framework of VAM constructed in this paper can provide a more systematic risk assessment method for enterprises to effectively use Valuation Adjustment Mechanism.It also can enhance enterprise's awareness of risk identification.Meanwhile,the financial control measures proposed in this paper also benefit enterprises to improve their risk prevention ability.