Analysis On Financial Risk Early Warning Of China’s Online Game Industry

In recent years,the online game industry as a new industry has attracted more and more attention.The scale of the online game industry is gradually expanding with the development of the Internet.In the past 30 years of development,the types of online games continue to enrich,and the overall scale of the industry has expanded year by year.By the end of 2019,the total scale of the online game industry has reached 260 billion yuan.However,since 2018,the competition in the online game industry has gradually intensified due to factors such as the slowdown in the growth of the industry scale and the blocked product distribution.In the fierce external environment,the enterprises that have long ignored the financial risk have some problems,such as cash flow shortage and profitability decline.Therefore,it is urgent to pay attention to the research of financial risk measurement.Paying attention to financial risk has become an important means for enterprises to maintain competitiveness in the fierce competition.Effective financial risk measurement is helpful for enterprises to put forward countermeasures according to the measurement results,resolve financial risks in advance,prevent financial crisis,and help enterprises to develop sustainably and healthily.Based on the above background,this paper measures the financial risk of online game companies,makes research and judgment according to the measurement results,clarifies the main causes of financial risk,and formulates relevant preventive countermeasures according to the obtained reasons,and makes prospects.First of all,this paper expounds the background and significance of the research,combs the literature related to financial risk,and summarizes the research results of domestic and foreign scholars in the field of financial risk.Secondly,this paper collected the financial data of26 listed companies in the online game industry in 2010-2018,and selected 13 financial indicators in terms of profit,operation,debt repayment,growth and cash according to the characteristics of the online game industry.Thirdly,we use factor analysis method to get the financial risk score and ranking of 26 listed companies,and compare the top 5 and the bottom 5 listed companies.According to the score of financial risk to determine the financial risk warning situation,this paper carries out a case study based on the severity of the warning situation,and analyzes the influencing factors of the financial risk of 26 listed companies with the aid of dual logistics regression method.Then,the financial riskwarning threshold is determined according to the score ranking,and the influencing factors of the financial risk of 26 listed companies are analyzed with the aid of dual logistics regression.Finally,the results will be used to summarize all kinds of financial risks that may appear in the industry and put forward corresponding countermeasures,in order to help enterprises predict risks,timely and effectively avoid risks,and improve the ability of online game enterprises to resist risks.