Research On Financial Risk Under The Diversified Expansion Of Enterprises

At present,our country is in the period of updating the industrial structure and mode of production.Enterprises are facing two challenges: the dynamic adjustment of social and economic development and the downward trend of the overall economic trend.How to adapt to the rapid changes in the market environment,grasp the overall trend,speed up the adjustment of its own industrial structure,and seek a breakthrough in the new period of sustainable development,is the top priority of enterprises at present.As far as China's market is concerned,the vast majority of enterprise groups are not only limited to traditional business models,but also seek diversified expansion through mergers and acquisitions,new establishment and other ways in order to increase enterprise profits and broaden profit channels.Under the tide of this era,it has become a general trend for enterprises to enter the road of diversification and expansion,actively change their business ideas and seek a new profit model.Since the reform and opening up,many enterprises in our country have become successful cases of diversification,but similarly,the failure of diversification expansion leads to difficulties in operation or even bankruptcy and reorganization.As a national enterprise,the double-sided needle has been facing serious financial risks since its diversification expansion.A series of current situations,such as loss in the past 13 years after listing and avoiding ST by disposing of non-operating assets,make its case have greater practical significance and strong representativeness in the current economic environment of our country.Therefore,this paper takes the failure of double-sided diversification expansion as a negative case to study its related financial risk under the diversification expansion strategy.Firstly,this paper combs the related literature of diversification expansion and financial risk,and then carries out the mechanism analysis of the impact of diversification expansion on its own financial risk.Then,it combs,summarizes andsummarizes the characteristics of financial risk under diversification expansion,and then carries out case studies.Firstly,this paper combs the course of diversified expansion of double-sided approach.Secondly,it surveys the current financial situation and dilemma of enterprise groups,and makes quantitative evaluation of financial risk by using analytic hierarchy process.Subsequently,the paper analyses the results of the high financial risk from the aspects of operation risk,liquidity risk and investment risk,and compares Shanghai nationalization with its daily chemical industry.Finally,it summarizes the deficiencies of financial risk management and control under the diversification expansion.and puts forward relevant countermeasures and suggestions.The conclusion of this paper is that since the diversification expansion,the financial risk has been aggravated continuously,and with the failure of diversification expansion,the financial crisis has become more and more serious;moreover,according to the comparative analysis between the diversification and the financial risk of Shanghai nationalization,the author believes that,as far as the two-sided approach is concerned,the impact of relevant diversification and non-related diversification on its financial risk is different and non-related.Diversification has a greater impact on financial risk to a certain extent,which is manifested in the fact that the unrelated diversification sector has aggravated its financial risk to a greater extent.The suggestions put forward in this paper include returning to the main business,reducing the degree of diversification properly,strengthening the development of related diversification sectors,optimizing the profit model,and strengthening the control of financial risk from the institutional level.Finally,the author summarizes and prospects the case study of this paper,hoping that this study will have a certain practical significance,help enterprises to think about the rationality of diversification strategy and pay more attention to the financial risk under diversification,and thus effectively identify and control financial risk on the way to implement diversification,and promote the sustainable development of enterprises.