Research On The Risk Management Of The Gambling Agreement Based On The Perspective Of The Financing Party

The report of the Nineteenth National Congress of the Communist Party of China clearly points out that we should build a socialist modern culture,encourage the cultural industry to flourish and make a hundred schools of thought contend.With the increasing spiritual and cultural needs of the people,in the field of culture,entertainment industry as a new industry has developed very rapidly.A few investors in film and television works become famous simply because they produce an excellent work.In the face of the increasingly good development situation of the film and television industry,most enterprises hope to accelerate their pace of development and produce excellent works.But because of the early stage of the film and television industry from copyright purchase to post-production often require a huge sums of money,the enterprise only rely on their own accumulated it is difficult to quickly get the funds required to production,film and television works,and the film and television industry belongs to the typical asset light industry,it is difficult to through the mortgage loans from the bank,and therefore can only find other financing methods.Among various financing channels,private equity financing is favored by many enterprises due to its easy access and high efficiency.In recent years,a brand new financial tool similar to options--Valuation Adjustment Mechanism(VAM)has gradually come into people's sight in private equity financing.The Valuation Adjustment Mechanism is a new type of financial instrument that investors exchange investment for financing in the future.For the investors,the VAM is similar to insurance.For the financiers,the VAM can help the enterprises to get financing quickly,and at the same time,the VAM will stimulate the financiers to work hard.Successful VAM will make investors and financing parties to achieve a win-win situation,but the failure rate of China's current VAM is high,according to the statistics of China's current bet success rate is only 37%,nearly 70% of the financing enterprises fail because of failing to reach the bet target.For financing parties,once the bet fails,they will face huge compensation and lose the control of the enterprise if the bet fails.Therefore,it is of great significance to study the risk of the VAM and how to deal with these risks to improve the success rate of the implementation of the agreement.This paper firstly sorts out the research status of the VAM and its risk,and summarizes the connotation,components,characteristics and other basic theories of the VAM.Secondly this article selects impact media entertainment industry new three board listed companies,for example,with its Shanghai Jiulong Fuqi Venture Capital Investment Company,Shanghai Jiulong YanZe Venture Capital Investment Company,the investor's performance as the breakthrough point,through the analysis of the process of art media on the agreement,the agreement bet against risk can be divided into the VAM has been signed in front of the market risk,bet on terms set risk,the performance targets set in the VAM was signed after the risk,management risk and VAM has been signed the legal risk control and risk transfer.Finally,in view of the risks discussed above,the risk control system should be established.Before signing the VAM,the enterprise should reasonably evaluate the external environment of the enterprise and reasonably set the bet terms.At the time of signing the VAM,it is necessary to reasonably set the VAM's object and the execution standard and improve the enterprise management ability.After the signing of the gambling agreement to ensure the legitimacy of the signing of the treaty,pay attention to the requirements of the audit authority.In order to reduce the failure rate of VAM,the risk management system of VAM is constructed and some Suggestions are provided for other enterprises.