Research On Financial Risks Control Of Internet Enterprises Based On Diversified Operation

In recent years,China's listed companies have shown a diversified development trend,and relevant traditional theories such as asset portfolio theory believe that diversification strategies can diversify the financial risks of enterprises.When enterprises develop to a certain extent,they begin to pursue economies of scale.Enterprises are also willing to run existing idle resources to broaden new areas and integrate multiple resources to improve market competitiveness.These factors drive companies to actively explore a diversified business model that matches their own.Most Internet companies are in the development stage.their organizational configurations and personnel structures are not perfect,and risk management and control experience is relatively lacking.Therefore,controlling financial risks in diversified operations is particularly important.Among the many Internet companies that implement diversified business strategies,Company LS has emerged with its ecosystem of multi-disciplinary layouts,and has accelerated the pace of diversification of other Internet companies.However,with the emergence of “arrears” and the frequent occurrence of negative news such as the frequent reduction of LS's major shareholders,people has begun to focus on the real business conditions and profitability behind them.Since then,the financial crisis of Company LS has intensified,and the brand reputation has disappeared.The stock price plummeted until the audit report of “Unable to express opinions” was issued for two consecutive years in 2017 and 2018,and it has reached the standard of being delisted.So far,Company LS has become a typical failure case for Internet companies in the development of diversified operations.Here,this article has carried out more detailed research and analysis on how to control the financial risks existing in the diversified operation of Internet companies.This paper uses the literature research method to systematically sort out relevant theories and concepts.Then the paper summarizes the problems that may arise in the process of diversified development,such as high research and development costs,serious imitative phenomena,difficult innovation of profit model,and weak internal control.This article uses case analysis to introduce the once-optimized Internet company—Company LS,and describe the company's diversification process with Herfindel Index.From the perspective of diversified business motives,the article uses comparative analysis method and related financial indicators to compare the financial situation of LS company before and after diversification.Then,this paper studies the financial management methods from the accounting entity and the diversified ecology of Company LS,and analyzes the financial risks of Company LS's diversified operations in a more comprehensive way,and then summarizes the problems.On this basis,the paper reflects on the case and draws inspiration from the three aspects of Internet companies,national laws and government supervision,and proposes corresponding control measures.On the one hand,the content of this paper can enrich the theoretical research on diversified business management and financial risk management and control.On the other hand,it can provide more suggestions and references for implementing diversified business strategies for listed companies in other industries.