Research On Financial Risk Of Y Finance Leasing Company

Financial leasing was introduced to China from developed countries in the early 20 th century.Modern financial leasing is a combination of credit financing and traditional leasing with money as the carrier.The background of modern financial leasing is that during World War II,the U.S.government used a method called "cost-added method" to produce financial leasing.Quartermaster material,and under the influence of this method,modern financial leasing can be produced,and then the modern financial leasing in the production sector continues to grow.Then,the development of the industry in China is not smooth sailing.It can be said that there are some twists and turns.Since the new century,with the further deepening of economic restructuring,the main external environment for the development of China's financial leasing industry has also been greatly improved.With the re-opening of bank funds to participate in financial leasing business and the gradual opening of domestic leasing companies in 2007,the industry has become increasingly well-known and the scale of the industry has developed rapidly.This paper uses Z model to identify and analyze the potential financial risks of Far East International Leasing Co.,Ltd.(hereinafter referred to as Y Company)in different links of production and operation.The purpose of this paper is to identify the financial risk of Y financial leasing company through scientific financial means,find out the problems in its financial risk management,and put forward constructive suggestions in view of the proposed problems,hoping to provide a theoretical basis for the development of domestic financial leasing industry.This paper collates and summarizes the relevant literature on financial risk of financial lease,and introduces the related concepts of financial risk of financial lease.This paper chooses the typical domestic financial leasing company as the research object,uses the case analysis method to carry on the concrete case analysis to Y financial leasing company,separately uses Z-score model method and financial index analysis method to carry on the analysis to Y financial leasing company's financial situation,and combines with the present situation of Y financial leasing company's risk management,finds out the financial risk of Y financial leasing company.The problems in prevention are: irrational financing structure,lack of investment risk prevention mechanism,high risk in capital operation and unfair distribution of share holders' interests.Based on the above analysis,this paper puts forward some suggestions for financial risk prevention of Y financial leasing company: optimizing financing structure,optimizing investment structure,optimizing financial decision-making system,establishing financial risk early warning mechanism of leasing company,paying attention to safeguarding the interests of small and medium shareholders,and distributing dividends fairly.