Research On The Causes And Enlightenment Of Financial Crisis Of FUGUINIAO

With the comprehensive deepening of reform in China,the competition among enterprises is more and more fierce.It has become an important issue for enterprises to keep away from financial crisis.Especially for China's footwear industry,which experienced rapid development in the early years,but in recent years,due to the impact of changes in consumer preferences and the rise of the Internet,the industry's "year outlook" is deteriorating,and footwear enterprises represented by FUGUINIAO are in different degrees of difficulties,and FUGUINIAO declared bankruptcy and delisting in August2019.Therefore,it is of great practical significance to explore the causes of the financial crisis of the former leading enterprises.This paper chooses FUGUINIAO Co.,Ltd.as a case study,and analyzes the causes of crisis and its enlightenment.This paper first reviews the beginning and end of the outbreak of the FUGUINIAO crisis and its consequences,and then divides the crisis into the incubation period and the outbreak period according to the calculation results of the Z-Model.It identifies that the outbreak of the crisis is mainly caused by the loss of hematopoietic capacity of enterprises,the huge loss of investment guarantee and the default and insolvency of bonds.On this basis,it analyzes the surface and deep causes of the crisis On the surface,it is the change of external environment,the outbreak of industry guarantee risk and the high debt ratio that make the enterprise go downhill gradually.However,the deep-seated reasons found that the financial crisis is the result of the combined action of the following five factors:(1)In corporate governance,the ownership structure is too concentrated,major decision-making lacks scientific and reasonable,and the lack of effective salary incentive mechanism,so that enterprises lack good The internal control environment cannot fully consider the long-term development of the company;(2)In the main business operation,the lack of innovation in design,poor brand operation,and lagging sales methods makeits core advantages no longer and lose the ability to generate blood;(3)In the non-related diversification In terms of investment,blind selection of investment products,lack of management of investment operations,causing the company to deviate from its main business and investment losses;(4)In terms of external guarantees,there is a lack of risk management departments,lack of approval of guarantee violations,and lack of setting of guarantee limits,causing huge amounts of money Compensation,resulting in huge losses;(5)Eventually,due to lack of control of cash flow,the company's cash flow is out of control and is unable to pay debts.Finally,the article also proposes five revelations for crisis prevention against the five deep-seated reasons for the outbreak of the FUGUINIAO crisis: optimizing corporate governance structure,enhancing the ability to create value of core products,strengthening investment management capabilities,enhancing guarantee risk management,and establishing an effective financial risk early warning mechanism,Reference suggestions are provided to prevent traditional enterprises from falling into financial crisis.